By Patrick Tepoorten

Following an uneventful Truth in Taxation hearing on Nov. 29, Rush City taxpayers can expect the City Council to approve a roughly 30.5 percent increase to the levy for the 2008 budget. But, thanks to the termination of two TIF districts, which will increase the city's net tax capacity by over $300,000, the affect of the levy increase will be all but entirely mitigated.

Residential homestead properties can expect tax increases less than $10. A $150,000 property will see a less than $4 increase, and a $275,000 property a roughly $6 increase.

Much of the $444,731 levy is dedicated to special funds. The debt service levy will increase almost $63,000, primarily for purposes of paying down an annual Public Facilities Authority (PFA) loan, that was used to make upgrades to city infrastructure.

The city plans to generate the balance of the $400,000 payment through water and sewer funds, and is expected to approve an increase to water and sewer rates of 25 and 20 percent, respectively, to be phased in over two years, at it's Dec. 10 meeting.

Other increases include a $6,000 increase to the fire equipment fund, and new this year is a $24,000 levy for the city's recently enacted Economic Development Authority (EDA).

Looking at the general fund, the General Government/City Hall line item was decreased by $62,000 because of a budgeted position in 2007 that was never hired. As well, Public Works went down almost $5,000 due to reallocation of salaries.

Some of those savings were offset by increases elsewhere, such as $36,000 for law enforcement, $15,000 for parks, and $19,000 for the library.

Property taxes comprise roughly 25 percent of the city's revenue toward its total 2008 budget. Rush City relies on intergovernmental aid, such as local government aid (LGA) from the state, to produce over 50 percent of its over $1 million total budget. Those intergovernmental revenues are set to increase $35,000 from 2007 to 2008.

The City Council is expected to approve its 2008 budget at the Dec. 10 meeting.