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Despite uncertainty from state, Palatine will reduce levy for fourth straight year

Palatine will reduce its tax levy for the fourth year in a row, under a proposed budget village officials will present to residents at a Saturday morning meeting.

According to a budget overview from Village Manager Reid Ottesen, the 2014 property tax levy reflects a decrease of $100,412 over the 2013 levy, and there has been a cumulative reduction of $653,284 over a four-year period.

The village collects about 12 percent of the property taxes paid by villagers, Ottesen said.

The 2015 budget, which is balanced, comes in at about $117.7 million, with $67.7 million funding village operations and the remaining roughly $50 million for capital projects.

Ottesen said the village's finances are strong, even though the state is going through a period of extended economic uncertainty.

"(The state's) outstanding debt has increased, they have had no capital plan for more than a decade, their financial obligations to vendors are over $3.5 billion and their pension pressures have not been solved," Ottesen said.

He said the most troubling thing is talk that state lawmakers could reduce the amount of money Palatine receives from the state, which is nearly $15.4 million this year.

"If the state were to follow through on their threats to reduce these dollars, Palatine residents would be faced with either the largest reduction in local services in recent history or the largest property tax increase in our history," Ottesen said.

While other villages might urge the state to contribute more money to them, Palatine simply wants to be left alone.

"Just keep your hands off us from a revenue standpoint," Ottesen said.

One area where the village plans on getting more money next year is in sales taxes, which is a sign of continued stability within the local economy, according to Ottesen.

He said the village remains hopeful that three of the large vacant stores in Palatine - the Dominick's locations at 615 E. Dundee Road and 720 W. Euclid Ave., and the former Menards at 1775 N Rand Road - are purchased and put back to use, which would bring in new sales tax dollars.

The whole budget will be posted on the village's website Friday. The budget presentation will be at 8:30 a.m. Saturday morning at the Palatine Police Department, 595 N. Hicks Road. Ottesen said residents should watch cable access channel 6 for a schedule of when they will rebroadcast a taping of the presentation.

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