Normal Increases Tax Levy to Offset Low Returns in Pension Funds

Local News

NORMAL – Normal Town Council voted to increase its tax levy by nearly 6 percent on Monday Night.

Coupled with the increase in property values, the average homeowner will pay roughly $13 per year more in property taxes.

The increase will help the town pay its growing share of police and fire pensions. With low interest rates, the town’s return on investments is lower than projected. The state mandates pensions are funded at 90 percent by the year 2040. Normal is funding pensions at close to 60 percent.

With this increase, town leaders say they are on pace to fully fund their pensions ahead of the state mandate

“So, as we get closer to that 2040 number and our performance and interest earnings investments don’t do as well, we need to put more money in from the employer,” said Director of Finance Andrew Huhn.

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Don't Miss