Schaumburg to keep tax levy at same amount for third year
Schaumburg officials plan to maintain their 2016 property tax levy at the same level as the past two years - $20.7 million.
While keeping a levy flat for two straight years is a rare accomplishment for a local government, Schaumburg officials had intended to lower the levy annually after the recession led them to impose the village's first property tax in 2009.
Officials cited rising pension costs and the need for expensive street repairs for keeping the levy amount the same.
"I think we're being smart," village Finance Director Lisa Happ said. "Maintaining the levy as is was really a win for us."
Trustee Tom Dailly, a member of the village's finance committee, agreed.
"There was a potential the levy could be lowered by 1 percent, but we have streets in dire need of repair," he said.
The most urgently needed repairs are expected to cost between $5 million and $8 million. Deferring repairs would invite much greater problems, Dailly said.
Changing the village's funding formula for its police and firefighter pensions is another major factor in this year's levy. Some revenues will be diverted from the general fund to help support those costs.
Until now Schaumburg has been contributing to its pension fund at a higher rate than required by state law, but will ease up on that.
Happ and Dailly said there's no reason to be 100 percent funded while there are current employees contributing to the fund. The revised plan seeks to be at 57.7 percent for police and 64.5 percent for firefighters.
"We have to be concerned about it," Happ said. "We're not kicking the can down the road irresponsibly."
There has been an effort to be a little ahead of the game, which bonding agencies like, Dailly said.
The tentative levy is scheduled to be presented to the full village board on Nov. 8 and approved Dec. 13.