BLOOMINGTON — Residents of Bloomington, Normal, McLean County and other areas across the state are worth more to their communities than they probably realize.

This year, each person will bring about $131.85 in state money to local coffers.

For Bloomington, that amounts to about $9.8 million; in Normal, about $6.6 million; and in McLean County, about $2.6 million.

“There’s no doubt every person makes a significant difference,” said Geoff Fruin, assistant to the city manager of Normal. “Any increase in revenue realized will have a positive impact on the general fund (used to finance day-to-day operations.”

It’s based, for the most part, on the U.S. Census that takes place every 10 years. Census 2010 starts in March.

“It’s important for municipalities,” agreed Bloomington Finance Director Tim Ervin.

Census numbers are used to calculate a city or county’s share of state motor fuel taxes, state income tax and local use tax. The latter two go into the general fund.

Income tax revenue makes up nearly 9 percent of the revenue for Bloomington’s $77 million general fund budget; about 10 percent of Normal’s $38 million general fund; and about 6 percent of McLean County’s $32 million general fund budget.

Motor fuel tax money is the main funding source for road work.

While use tax — the tax paid on automobile purchases — plays a lesser role, every dollar matters, especially in the struggling economy.

Because per capita revenue is so important, Twin City officials approved a special census in 2005.

Bloomington paid about $133,000 for the special headcount; Normal paid about $120,000 — a small amount compared to what the two municipalities received in extra state dollars.

The special census revealed Bloomington’s population grew by about 10,000 residents between Census 2000 and 2005 — to 74,975 people. At the time, the per capita rate used to determine state revenue funding was about $111 per person, or a total of about $1.1 million extra for Bloomington’s budget.

Normal conducted the special census only in its high-growth areas on the town’s east side. That count alone increased the town’s population by nearly 5,100 people — to 50,485 — and led to about $566,000 more each year for the town’s budget.

Other funding

Besides being the basis for the three large state revenue sources, population numbers are used to determine community block grant funding and energy block grant funding, Fruin said.

Census numbers also earn the town free therms from Nicor. The free therms are used to offset providing heat to town-owned buildings — about a $60,000 savings each year. In exchange, Nicor gets the use of public rights of way for its lines.

While Fruin, McLean County Regional Planning Commission Director Paul Russell and County Administrator Terry Lindberg don’t expect Census 2010 to reveal big population increases like the Special Census 2005, any increase means extra tax revenue.

Based on the town’s building permits for construction and other population indicators, Normal might add 2,000 people during Census 2010, Fruin said.

At an estimated 2010 per capita rate of about $120 per person, that would bring in an extra $240,000 a year, he said. The per capita rate is expected to be lower in 2010 than this year because of high unemployment throughout the state.

“That’s a significant amount considering the council is looking at a property tax increase” to help cover mandated pension costs while still maintaining a healthy general fund reserve, Fruin said.

Russell’s office estimates the 2010 Census could bring Bloomington’s population to 82,645 — an increase of about 7,670.

That’s an extra $920,400 for the city budget that currently is facing a $4 million deficit.

Lindberg said the increase in population in unincorporated McLean County (the rural area outside the Twin Cities) is expected to be slight: about 1,600 — from 18,700 people counted in the Census 2000 to 20,300 in 2010. The county’s population total was adjusted to 19,725 in 2007, he said.

At $120 per head, that would bring an extra $69,000.

Lindberg cautioned, however, that those state dollars could be less if the General Assembly changes the formula for determining the share municipalities and counties receive (currently at one-eleventh percent).

It’s something that has been tossed around from time to time in an effort to bring more money to state coffers, he said. Currently, it is not under consideration.

 

Head count

Information gathered in the Census is used in a variety of ways including:

-- Drawing federal, state and local legislative districts

-- Distributing more than $300 billion in federal funds and even more in state funds

--  Forecasting future transportation needs

--  Directing money to services for people in poverty

--  Distributing medical research

--  Reapportioning seats in the U.S. House of Representatives

--  Drawing school district boundaries

--  Planning health and educational services for people with disabilities

-- Locating factory sites and distribution centers

-- Distributing Title 1 funding and college tuition grant and loan programs

-- Determining areas eligible for housing assistance and rehabilitation loans

-- Attracting new businesses to state and local areas

--  Planning for hospitals, nursing homes, clinics, and the location of other health services

-- Designing public safety strategies

 

Tax distribution

The Illinois Department of Revenue collects income, local use and motor fuel taxes, and then distributes the revenue to municipalities based on population. The amount municipalities receive varies, based on how much is available to reimburse. When unemployment is high, as it is now, fewer income tax dollars are being paid, meaning fewer dollars are distributed.

The chart shows the per capita amount municipalities received since the 2004 fiscal year (May 1-April 30). The state's population in August 2009 was 12,983,500.

Fiscal year... State use tax revenue... Motor fuel tax revenue... Income tax revenue... Total

2004...$60.40...$28.61...$9.24...$98.25

2005...$67.63...$28.99...$10.22...$106.75

2006...$76.35...$28.90...$11.88...$117.13

2007...$84.22...$28.93...$12.91...$126.06

2008...$92.02...$28.07...$13.57...$133.66

2009...$91.08...$26.33...$14.44...$131.85

2010...$77.00...$25.60...$12.70...$115.30*

*All 2010 figures are estimates

Source: Illinois Municipal League