Moline council, Mayor raise taxes, fees even higher

In an effort to dig out from the deficit created by their years of poor decisions, the Republican dominated Moline City council went about the process of sticking it to their residents Saturday.

With a tie-breaking vote by Mayor Don Welvaert, the Moline City Council committee of the whole voted Saturday to increase taxes and spending for fiscal year 2006.

Aldermen, who had a special budget workshop to address a projected deficit and informally adopt next year's $105 million budget, were split when asked to approve a 5-cent increase in the property tax rate, currently $1.91 per $100 assessed valuation.

Voting for the increase were Ald. Dick Potter, 4th Ward; Bill Adams, 5th Ward; Mike Crotty, 6th Ward; and Dorothy Armstrong, 7th Ward.

Voting no were Ald. Arcilia Dominguez, 1st Ward; Michael Carton, 2nd Ward; Scott Raes, 3rd Ward; and Kent Breecher, At-Large.

Mayor Welvaert broke the tie with a yes vote.

The proposed increase still has to go to a public hearing and be formally approved by the regular city council before implementation. If it does receive final approval, it would cost the owner of a $100,000 home an additional $16.65 a year in property taxes.

The increase is expected to raise an additional $335,000, still leaving a deficit of $317,065 after aldermen added several more items to the budget. The same tie-breaking vote also decided that amount would be covered with reserve funds.

Items added to the budget were $150,000 for staff at the new library, $6,000 for educational materials for automated trash collection, $65,000 for additional parking ramp maintenance and $60,000 for the fire department after the staffing "jump" system is eliminated.

Aldermen also decided to use $68,612 in park board reserves to cover a deficit in that fund, but left a $346,065 deficit in the library fund.

Aldermen went through several scenarios of how they could balance the overall budget - from a 4 percent packaged alcohol beverage tax to a municipal transfer tax on property. None of the scenarios were approved.

Mayor Welvaert said he supported the tax increase because it's not a new tax, as a packaged alcohol beverage tax would be. "Given the alternatives, I would rather stay in the existing tax structure we have."

He said the property-tax rate is revisited each year and can be lowered if the city's financial situation improves. However, he acknowledged that "Once you initiate a new tax, it is hard to eliminate."

Sewer rates going up

Sewer rates will be going up in Moline next year, if the full city council approves a committee-of-the-whole decision made during a special budget session Saturday.

The committee-of-the-whole decided to increase sewer rates 8.2 percent, which would raise an additional $200,000 to $250,000 a year. The revenue would go towards the city's $1 million a year sanitary sewer pipe replacement program.

If approved, the increase would cost an average family of four consuming 20,000 gallons of water an additional $21.32 a year.