Trustees Approve 3.23 Percent Tax Levy Increase

(A correction has been made in the second paragraph regarding the calculated increase in tax revenues that would be devoted to village operations) 

A $233,223 or 3.23 percent tax levy increase was approved by the Village Board on Monday night. The total levy for 2010 is $7,453,418.

The village portion of a $5,000 property tax bill is 13.5%, which comes to $675.00.  When the increase of 3.23 percent is calculated based on that $675.00, the increased amount would be $21.80 more than 2009. 

The first installment will be due in June and the second in September.  

"The tax levy is something we must do each year in December in order to establish property taxes to be collected in the following year," said Rich Sustich, trustee. "The village is constrained in how much of an increase is levied and our action conforms to that requirement."

The board also approved an abatement of revenue bonds that could have been used to cover debt service payments.  Village staff recommended the action because there are sufficient funds to make the payments without imposing additional tax increases.

Included within the total levy amount is $6,280,856, which is divided between funds for village operations, police and fire protection, ambulance service, Illinois Municipal Retirement Fund (IMRF), social security and insurance. 

Also included in that number are police and fire pensions.  All of those levies are subject to the Property Tax Extension Limitation Law (PTELL).

The levy for Special Recreation is $180,000 and debt service is $992,562.  Neither are subject to PTELL.

Levy amounts that are subject to PTELL allow municipalities to raise taxes either 5 percent, or base increases on the change in the Consumer Price Index (CPI) from the prior year; whichever is lower.

The increase in CPI was 2.7 percent over 2009, so the village was able to take advantage of that tax increase. New equalized assessed valuation (EAV) in the village brings the total increase to 3.23 percent. 

The EAV is affected by properties that are annexed into village boundaries, new construction or improvements made to existing buildings or residences which increase their value. 

Police and fire pensions have been of particular interest in light of recent levy requests by pension boards for both. 

The police pension board requested a levy of $1,364,774 and the village approved a levy amount of $1,237,597 which is short by $116,838.  The fire pension board will receive $719,209 less than their request of $1,231,261 because the village approved a levy of  $1,231,261.

"The discrepancy in levy amounts are related to past underfunding, changes in state law regarding pensions and different variables used to calculate the levy amounts," said Al Zochowski, finance director. "We will have to make up those deficits by 2033 as required by state statute."  

Both pension boards have yet to receive their entire levy amounts from 2009, said Sustich. State law requires any remaining levy payments be discharged a maximum of 30 days after they are due.

The village will make good on those payments, but it may take until early Spring to do so, said Bob Vitas, village administrator.