City Expects Tax Rate Increase, But Amount Residents Pay to Hold Steady

Darien residents will likely pay the same amount in taxes to the city during fiscal year 2012 despite an anticipated increase in the tax rate, according to the tax levy determination proposed Monday at the meeting.

The city expects the equalized assessed value of property in Darien to decrease during FY 2012, which ends in March. But at $1,617,850, the proposed levy is identical to last year.

The tax rate must go up so the city can collect from residents that $1.6 million for the police pension fund and general corporate purposes. However, since the higher rate will be applied to a property with a lower value, the end result is a tax bill that looks the same.

Of the amount levied, $535,261 would be directed toward general corporate purposes, while $1,082,589 would go toward the police pension fund, according to a draft ordinance.

“We ask for the maximum and as we go through the budget, if there’s any money left, then we can cut it back,” Treasurer Michael Coren said. The city can’t ask for a higher levy later.

Last year the city directed about $1.3 million to the police pension fund, but City Administrator Bryon Vana said that the new actuarial study indicates the city doesn’t need to contribute quite that much to the pensions. 

“We’re still taking the more aggressive approach with what we’re putting in (the pension fund) compared to the less amount the actuary said we could put in,” Coren said.

Including the general obligation bonds, the tax levy equals about $2.6 million. The city typically abates some of those bonds closer to the annual budget discussions, Vana said. 

The city council will vote on the tax levy determination at its next meeting. It will vote on a final ordinance after a public hearing at the Dec. 5 meeting.