The South Elgin tax levy looks like a 37-percent increase from last year’s request but residents won’t see substantially higher taxes because of it.
Legally, South Elgin has to request enough in taxes to cover all of its debt obligations and since the village now is responsible for the Otter Creek Water Reclamation District’s debt, too, the request includes quite an increase.
The village officially absorbed the Otter Creek Water Reclamation District Aug. 31.
But South Elgin Finance Director Art Skibley said the village doesn’t pay for its debt through property taxes. Instead its debt payments come from user fees like sales taxes and other alternative revenue sources. Same for the Otter Creek Water Reclamation District.
Skibley said money that would go to pay the debt obligations will be subtracted from the $6.6 million property tax levy by Kane County through tax abatement, leaving a relatively small tax increase in its wake. The village received about $3.4 million from tax year 2011. Skibley said he expects to receive $3.5 million for the 2012 tax year.
The village board held a truth in taxation hearing Monday, at which no residents spoke. The levy will officially be passed by the board Dec. 3, Skibley said, along with the accompanying tax abatement resolutions. No discussion is planned for that meeting as the tax levy has already received preliminary approval.Copyright © 2013 Paddock Publications, Inc. All rights reserved.