Got to hand it to the folks on the Woodstock City Council
I thought the Crystal Lake City Council was bold when it proposed and passed a 75% sales tax hike in 2007.
Crystal Lake hiked its tax from one percent to 1.75%.
Now, the Woodstock City Council, according to the Northwest Herald, plans to double its one percent sales tax.
That’s a 100% increase for those who don’t remember junior high school math (or is that taught in elementary school now).
Reading the NWH article, I see the reporter did not realize it was a 100% increase.
She reported that it was a one percent increase.
What will the money be used for?
Citing a staff memo (see memo from Paul Christensen, dated 3-1-17 in the council packet), the NWH reports it will go for street maintenance and police pensions.
According to a report filed with the Illinois Department of Insurance, Woodstock’s Police Pension Fund is funded at 63.7%.
(In 2012, McHenry County Blog reported Woodstock’s Police Pension Fund in 2011 was funded at 68.5%)
As some compensation for the 100% city sales tax hike, the Council proposes cutting its property tax levy by 10%.
The City Council meets tonight at 7.
If the City Council passes the 10% real estate tax cut, the $9,239,366 that is expected to be collected this spring will decrease to $8,315,429.
The annual estimated new revenue from increasing the city sales tax from one percent to two percent is $2,337,000.