Albion village budget shows 6.8% tax increase, which may be reduced slightly

Board doesn’t see many options to whittle down tax rate

ALBION – The Albion Village Board is close to finalizing the village budget for 2024-25, a spending plan that will surely raise taxes.

As it stands, the $8,194,537 budget would increase taxes by 6.83 percent — raising the tax levy from $2,923,473 in 2023-24 to $3,123,167. The tax rate would go from $19.13 per $1,000 of assessed property to $20.43 with the budget that was presented during a public hearing on Wednesday evening.

Board members said they have been over the budget in detail for about two months, working with department heads. Board members don’t see options to bring the taxes down significantly.

They could reduce employee raises from 3.0 to 2.5 percent. They could pull another $6,000 from the village’s fund balance. They could also try to invest some village funds that are in accounts but haven’t yet been spent, perhaps securing a few thousand dollars in interest.

None of the moves would provide much relief for taxpayers. The budget will almost certainly be over the village’s allowable tax increase to stay within the tax cap, said Tracy Van Skiver, the village clerk/treasurer. Albion would have to chop about $111,000 to get under the tax cap, she said. (The board can override the tax cap of about a 2 percent increase with a super-majority vote from the board.)

Board members said rising costs for materials and equipment are driving some of the tax increase.

Mayor Angel Javier Jr. would like to try to bring down the tax increase, especially when the village will also be raising water and sewer rates later this year. Village property owners also saw a big increase in their Albion town taxes this year.

“Let’s give them a break because their costs are going up,” Javier said.

Buy Deputy Mayor Joyce Riley asked just where the village should make a cut.

Javier said the rising taxes will be difficult on residents, and may have them asking if it would make sense to dissolve the village government.

“There will be a point when people will say, ‘Let’s not have a village,’” he said.

The total budget is at $8,194,537, up $651,162 from the $7,543,375 in 2022-23. The budget includes $4,702,052 in the general fund ($4,307,602 in 2023-24); $2,068,150 in the water fund ($1,880,984 in 2023-24); and $1,424,335 in the sewer fund ($1,354,788 in 2023-24).

The budget needs to be adopted by April 30. The board could make changes to the budget before then.

Trustee Tim McMurray said the budget is down to “bone marrow” and he doesn’t expect any significant changes in the current numbers.

New trustee William Gabalski said he has been through the budget line item by line item twice. The only way to bring down the costs significantly would be to scale back services, Gabalski said.

“There’s not a lot left to cut unless there are conversations about services delivered,” he said.

Riley and McMurray said the budget represents the costs to run the village. She doesn’t want to tap more into the fund balance, jeopardizing the future for the village. Van Skiver said in recent budgets the village has taken about $250,000 a year from the fund. There is currently about $800,000 in there. The proposed budget would take $255,000 from that fund balance.

Taken too much could drain that fund, and result in an even bigger tax increase in the future, Javier said.

Riley said she would like to go back to department heads and staff to see if there is any more reductions possible.

There is some relief possible on the horizon. The village is discussing a fire protection district with the towns of Albion and Gaines. That would move the fire department out of the village budget, likely lowering the village tax rate if the district gains voter approval. However, village residents would pay a separate fire protection tax that would be in the town and county tax bill in January.

The village also hasn’t gone through a town-wide reassessment for about five years but that is expected in May. Many of the assessed values are expected to up significantly. That should give the village a much-higher tax base in 2025-26.

The village’s tax base has been shrinking. It went down 1.08 percent or by $1,663,794 –from $154,457,302 in 2022-23 to $152,723,508 in 2023-24. Most of the loss in tax base was from the assessed value be lowered at the plaza at 318 West Ave. That plaza includes Save-A-Lot, Pro Hardware, Dollar Tree and the vacant spot formerly for Gordman’s.

The new budget shows another decrease by $74,424 – from $152,867,932 to $152,793,508.

A bigger tax base should bring the tax rate down, but property owners would likely still see their taxes rise if the tax levy, what the village collects in taxes, continues to go up.