Urbana is facing a $1 million dollar budget gap.
To help solve the problem the Mayor is proposing a raise in the city's sales tax by a quarter-percent.
Part of the short fall problem is being caused by the state deciding to approve a property tax exemption for CarleHospital and others due to the amount of charity care they provide.
That is worth about $800,000.
To help make up the short fall there is a proposal to increase the sales tax by a quarter-point which amounts to around $700,000 annually.
That would not affect food, medicine or big ticket items like cars,
If it's passed, the increase will go into affect on January 1st. There is a proposal in the state legislature that would require regional hospitals to pay property taxes if their profits are over 8%. Carle's profits are over 30%.