Princeton to seek $2.3 million in tax levy

The Princeton City Council approved Monday a tentative tax levy of $2,380,982, which is an increase of less than 5% from the previous year.

By keeping its tax levy lower than a 5% increase, it avoids a Truth-in-Taxation hearing. Last year, the City Council approved a tax levy of about $2.2 million.

City Manager Theresa Wittenauer said property values in the city’s taxing district have increased by 10.35%, something Mayor Ray Mabry exemplified by saying his tax bill was 6% to 7% more than the previous years, because his property value was assessed higher. Wittenauer said property values within the taxing district have increased by about $17.5 million, according to information provided by Bureau County.

Since property values are increasing by a rate lower than what Princeton will request in its levy, the tax rate is expected to go down by about 5%.

Mabry indicated residents may still pay more in taxes, because of their property likely being assessed at a higher value, but the city was not going to add to that increase.

“You won’t have to pay on both ends,” Mabry said.

Money levied for police and fire pensions increased by 10% from the previous year. Fire will be funded at a 56% rate and police at a 63% rate, Wittenauer said, noting the city is meeting the actuarial recommendations to fully fund those accounts.

Wittenauer credited Princeton’s solid sales tax base as a reason why the city didn’t ask for more in property taxes.

“Our sales tax is healthy enough to offset those costs,” Wittenauer said. “Keep shopping in Princeton.”