HANNIBAL — Hannibal’s proposed 2021 budget calls for a roughly 5 percent property tax increase to account for steep cost increases and reductions in state aid, and the town is holding a hearing tonight on the spending and revenue proposal.
The $1.3 million spending plan, if approved without changes, would carry a property tax rate of roughly $4.15 per $1,000 of assessed value, up from about $3.94 per $1,000 in the current year. Properties assessed at $100,000 would pay about $415 in town property taxes under the plan, with the 5.5 percent increase amounting to about $22 on such properties.
The Hannibal Town Board is scheduled to hold an in-person public hearing at 6:30 p.m. at Hannibal Town Hall.
Hannibal Supervisor Floyd Calkins said the town in recent years has made a number of changes to accounting practices and adopted a series of new policies related to spending and finances, including joining a government investment pool.
“I feel we have come a long way in the last few years on our budget,” Calkins said. “I feel we are on very solid financial footing moving into 2021.”
Total spending in 2021 is projected at $1,353,158, with estimated revenues at $732,839. The budget calls for the use of $45,319 in fund balance, or savings from previous budget years, leaving $575,000 to be raised via property taxes.
The $4.15 per $1,000 property tax rate is an increase from the 2020 rate, but is well below the town’s tax rate from 2011 through 2017, according to historical tax rate data provided by Calkins.
The majority of the town’s spending in the coming year is expected to come in the highway fund, which accounts for more than $944,000 of the $1.3 million the town is expected to spend. General fund spending amounts to a little more than $408,000.
Calkins said the town has seen cost increases in retirement contributions, insurance, utilities due to the state’s minimum wage increase. The 2021 spending and revenue plan also accounts for a roughly 20 percent decrease projected in state aid, Calkins said. Outside those increases, Calkins said there are no significant projects included in the budget and no substantial cuts or reductions elsewhere. Calkins said, however, the town would be paving “a lot more” next year, and noted “any and all increases in sales tax revenue” would be used for road repairs.
In addition to the highway and general funds, there are six special districts within the town that include water, sewer, lighting and fire protection districts that cover only portions of the town. Only those properties located within each district are subject to the associated costs.
Total special district spending is more than $2.2 million, and requires an additional $1.2 million to be raised through property taxes.