Proposed Buffalo Grove tax levy hike raises questions

Buffalo Grove plans to increase its tax levy 3.2 percent next year, a hike that would add about $35 to the property tax bill of the owner of a $300,000 home.

On the surface that may not seem that much, but one village trustee who heard Monday night's budget presentation called it a "tremendous jump" when compared to the small levy increases of recent years.

"In the end, we're still looking at a levy increase that's almost equivalent to the total amount increase in the last five years," Trustee Jeffrey Berman said.

Village Manager Dane Bragg said that even with the proposed levy going up to $15.4 million, up from about $14.9 million a year ago, the average hike over the past five years has been .74 percent, which trails the Consumer Price Index.

But Berman said he hopes to see more information supporting the proposed hike when the village board meets Dec. 7 meeting.

"I want to hear specific responses to why that is justified, because the public is going to ask that question and they deserve to know and I want to know," he said.

Village resident Craig Horwitz expressed frustration with the increase at Monday's meeting, using a faucet as a prop.

"Whenever the government wants more money, they just come to us. It's called the money faucet," he said. "The money faucet is real and it hurts. But it doesn't seem to hurt government, because they can just stipulate what they want in a tax levy and out it comes."

Bragg and his staff presented a comprehensive breakdown of the budget, which forecasts $79 million in revenues, down from $84 million in 2015, with drops in revenue for capital projects, internal service funds and special revenue. Projected expenses also are down, dropping from $78 million in 2015 to $74 million in 2016.

Finance Director Scott Anderson attributed some of the decline to a decision to split the cost of the automated water meter project between two budget years.

General Fund revenue is budgeted at $41 million, up from last year's $39 million, in part due to a new stormwater utility fee. General Fund expenses amount to $41 million, also up from $39 million in 2015, with increases driven largely by employee costs, including a $400,000 hike in health care premiums and $450,000 in pay increases.

Staffing will be leaner, with a drop in employees from 294 to 269, through a combination of attrition and outsourcing.

Reserves are projected at nearly $13 million, or about 34.1 percent of the budget.