By Howard Packowitz

NORMAL – Normal Mayor Chris Koos says it’s unlikely the town will sue Bloomington for terminating the Metro Zone, but town staffers presenting Normal’s annual financial trend and condition report said Normal is beginning to feel the pain.

Normal Finance Director Andrew Huhn told council members Tuesday night the town had been counting on receiving an annual $1.1 million in tax revenue from the west side Metro Zone, but that money won’t be there.

“In Bloomington, flip-side now, has increased (its) revenue $1.1 million this year, and also in the out years,” said Huhn.

“So that going to create some significant real challenges even beyond the issues of flat revenue sources we’re having to deal with,” Huhn also said.

It’s not known whether the apparent lack of litigation means the two communities are negotiating an amicable separation after 30 years of sharing tax receipts.

Town staffers are also less than thrilled to pay a fee for the state government collect sales taxes, which was part of the deal that broke the Springfield budget logjam. That will cost Normal taxpayers $300,000 a year, further complicating the task of balancing the town’s budget.

The trend and condition report looked at 36 indicators of the town’s financial help. Huhn said 19 of the indicators were considered positive, down from 21 last year. Nine of the indicators were negative, up from seven last year.

On the plus side, town staffers believe they’re able to manage the town’s debt obligations, pointing to Normal’s coveted AAA bond rating.

Sales taxes, the most important source of General Fund revenue for the town, are a major worry. State and local sales taxes have declined the past two years. Staffers don’t expect to see much growth because of consumers’ shift to online shopping and uncertainty about Illinois’ economy.

Howard Packowitz can be reached at [email protected]