BLOOMINGTON — McLean County faces declining revenues and increased state-mandated pension costs, and taxpayers will pay the price.

The tax that covers pension costs is expected to increase 5.84 percent, from about $25.8 million this fiscal year to $27.3 million for fiscal year 2010, which begins Jan. 1.

Because that is more than 5 percent, the County Board is required to hold a public hearing, set for 9 a.m. Tuesday in Room 400 at the Government Center, 115 E. Washington St. The board meeting will follow.

The county’s total tax levy is expected to increase only 4.12 percent, from about $30.7 million to about $31.98 million. That brings a proposed tax rate of about 89.4 cents per $100 assessed valuation, slightly below the current rate of 89.657 cents. Owners of a $165,000 house could save about $1.40 a year.

The total levy includes taxes levied for debt service and Public Building Commission leases.

County Administrator Terry Lindberg said that levy is down nearly 5 percent, from $4.9 million to $4.6 million, because of “a big decrease in operation and maintenance costs.” 

The PBC owns the Law & Justice Center and the county’s share of the Government Center. It contracts with the county to operate and maintain the buildings; pays rent for the facilities; and is paying Law & Justice Center renovations.

Meanwhile, the county’s cost of providing employee retirement benefits is going up.

Lindberg said the Illinois Municipal Retirement Fund is not earning as much on its investments. The state determines how much government entities must pay to keep the fund solid.

Employee costs remain the same; the county has to pick up any increases, he said. This year, the county is paying 7.44 percent of the cost for most employees. In 2010, it will increase to 9.1 percent.

The county’s share of pension costs for sheriff’s police will increase from 20.52 percent to 22.9 percent.

Key general fund revenues are dropping, including nearly 4 percent less in state income tax and nearly 20 percent less in personal property replacement tax.

The county’s proposed FY 2010 budget is about $75.4 million, about $537,645 lower than this year.