Lack of hospital taxes will take toll on city budget

Published 05/20 2013 04:14PM

Updated 05/20 2013 07:22PM

URBANA -- City leaders are trying to tackle the upcoming budget. The biggest challenge is hundreds of thousands of dollars they're losing since Carle won't be paying property taxes.

Mayor Laurel Prussing said they're not giving up on that money. Prussing said they'll take this back to the legislature, where it all started, and even to the courts if they have to.

A new state law made it so non-profits don't have to pay property taxes. So Prussing said the city will lose out on more than $800,000 a year from Carle because it now counts as a charity. She said even though 83% of Carle's buildings are within the city limits, only 3% of people who go there are in Urbana. And that math doesn't add up.

"We have to pursue it because we can't take this kind of a cut," said Prussing. "And it's not just taking the cut. It's taking the increase in the tax rate. That's the real dangerous thing because that goes on for years."

That tax rate may go up about 11 %. Mayor Prussing said that will make it hard to bring in new businesses and residents and even keep the ones they have now. City council members plan to talk about the budget on Monday night at their meeting.

The budget for this upcoming year is about $53 million. Prussing said they will continue working to get tax money from Carle for that period of time. 

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