Fernandez announces decrease in tax rate

Bloomington Mayor John Fernandez announced a decrease in the city's property tax rate Tuesday, saving the typical property owner in the city about $15.\n"Our new tax rate is good news for Bloomington residents and shows that we can be responsive to our good citizens' demand for better government at lower cost," he said. "Reducing taxes is key to economic growth and enhances the business climate of Bloomington."\nThe State Board of Tax Commissioners approved the city's 2001 budget earlier this month.\nThe city is cutting property taxes despite a 6-percent increase in spending, leaving the annual budget at about $35 million. The budget includes new spending on the fire department and the parks and recreation department. Passed 8-1 by the city council last September, it also provides funding for the city's new noise ordinance, part of the mayor's quality-of-life campaign.\nCity Controller Tom Guevara said an overall increase in property value makes the tax rate decrease possible.\n"The value of total property in Bloomington has grown faster than taxes," he said. "It's partly because of new development and partly because of annexation. We raised the same amount, but the payment rate for individual homeowners is less."\nBloomington has grown by 10 percent since the 1990 U.S. Census, Guevara said.\n"The new rate," Fernandez said, "will decrease by around 7 cents per $100 of assessed valuation, which is about a third of the market value. The rate presently stands at about $3.71 per $100." Fred Prall, president of the Monroe County Taxpayers Association, said the tax cut is a step in the right direction but does not go far enough.\n"Property taxes are much too high; too much reliance is put upon them for revenue," he said. "It goes counter to logic -- the more you work to improve your property, the more taxes you have to pay. It's just terribly inequitable"