Proposed levy means small tax hike in Buffalo Grove
A proposed hike in Buffalo Grove's tax levy for next year, driven primarily by additional spending on road improvement, would mean a property tax increase of about $26 for the owner of a typical home in the village, officials say.
The proposed levy of $15.5 million, a 2.64 percent increase over this year, was discussed by the village board Monday as part of a presentation on the town's planned $75.1 million budget for 2017. The overall budget is up just $212,000 over the 2016 spending plan.
The village board is expected to vote on the budget and levy at its Dec. 5 meeting.
Trustee Jeffrey Berman said the plan represents a significant improvement over the preliminary numbers released four months ago.
"I wish it were lower," he said. "I think everybody does. But it is a fact of life that if we're going to have services, we have to pay for them."
Village Manager Dane Bragg said the levy growth can be attributed largely to the bonds issued this year to fund street projects.
"We have completed more than $19.6 million in street work over the past five years, which is more than we completed in the prior 10-year period," he said.
However, one resident in the audience, Craig Horwitz, expressed his displeasure, noting that in 2012 there was no levy increase.
He labeled village's ability to ask residents for more taxes as a "money faucet," adding, "As a business owner, I can't simply raise my prices to raise my salary."
From the village's standpoint, the news was positive. Bragg said the budget is not only balanced, but contains reserves that exceed the 35-percent threshold established in 2012.
That doesn't mean there aren't ominous signals from Springfield, Bragg said.
"The village still considers the ongoing state fiscal situation as the most significant external threat to our ability to meet our goals," he said.
Finance Director Scott Anderson told the board personnel or service cuts could be needed if the state reduces the amount of revenue it shares with municipalities.
"We would really have to dive into programs and services and modify or look for different ways to offset that reduced revenue," Anderson said.
Berman raised concerns about the $800,000 in overtime expenses budgeted by the fire department.
Chief William "Mike" Baker said an analysis showed that a new full-time hire would save about $84,000 on those costs, but would also bring a cost of about $70,000 as well as "legacy" costs in terms of benefits.
Village President Beverly Sussman, noting that the budget for legal services has been increased from $349,000 to $409,000, asked whether it was time to create an in-house legal department.
But Berman pointed out that contracting out brings economies of scale, pointing out, "While we have competent counsel, they don't spend 40 or 50 hours a week each and every week working on the village of Buffalo Grove."