The Salem City Council Monday night approved its annual tax levy for next year’s property tax bills. The $1.8-million levy is 2.85-percent higher than property tax collections this year. Finance Director Keli Ross says the actual dollar increase is $37,300.
Ross was questioned about how she reached that number by City Councilman Craig Morton. She said after all numbers were entered into her formula worksheet, the 2.85-percent increase is the largest the city could actually expect to receive under tax caps while still capturing new construction.
The council once again abated property taxes to pay off General Obligation Bonds. Those bonds will actually be paid by sales tax money pledged to improvements made to the wastewater system and other public works projects.
The board approved the annual renewal of its Worker’s Compensation, Liability, Property, and Casualty insurance policy. It contains a 12-percent increase. Despite the increase, city officials commended the work of the Kane Insurance Agency and ICRMT in helping to keep claims down.
Bob Kane said most of the increase was the result of a higher workers comp ‘mod’ rating due to the number and expense of claims. However, when questioned, Kane said the city’s number of claims is not out of line. Kane is hoping the ‘mod’ rating will come down next year as a large claim comes off the three-year average next year.
City Manager Rex Barbee says he’ll also work to include earlier ‘light duty’ returns to work when negotiating the next contract with the police and operating engineer unions to try and reduce workers comp expenses.
The total cost of the insurance policy is $494,485.
The council also approved the appointment of Myron Lloyd to the Salem Historical Commission.
