West Dundee considering 8.6 percent tax levy hike
West Dundee officials are considering an 8.6 percent property tax levy hike in hopes of creating additional recurring revenue for capital projects.
The village board is expected to decide next month whether to collect about $4.6 million in property taxes for 2017. Of the proposed $361,848 increase over last year's levy, $300,000 would be earmarked for road resurfacing, infrastructure work, equipment repairs and other capital expenses, Village Manager Joe Cavallaro said. The rest would be used to fund greater fire and police pension obligations.
However, an anticipated 9.6 percent jump in the village's equalized assessed value could potentially relieve residents of the additional tax burden, Cavallaro said. Because the taxes would be levied over a greater EAV, West Dundee's tax rate would be expected to drop from $1.90 to $1.88 per $100 of assessed value, he said, meaning residents would likely see little difference on the village's portion of their tax bills.
"Part of the rationale for the board regarding the tax levy increase is to take advantage of that EAV increase and provide much needed funding for ongoing capital repairs," Cavallaro said.
The 2017 EAV is expected to rise to about $242.5 million - about $21 million higher than last year. Much of that increase is the result of new construction, particularly industrial growth at the Oakview Corporate Park, he said.
Trustees have been discussing potential revenue sources to fully finance a six-year capital plan, which is expected to cost $900,000 annually. A portion of the village's 14.5 percent levy hike approved last year was expected to contribute to those expenses.
The 8.6 percent levy increase for 2017, if approved, would bridge the remaining gap and ensure sustainable funding for future projects, Cavallaro said.
During preliminary discussions Monday, most trustees indicated their support for the levy hike, though Trustee Dan Wilbrandt said he'd rather keep the levy flat to provide some tax relief. Trustee Cheryl Anderley said she'd prefer to adopt a lower property tax increase and use other revenues to subsidize necessary expenses.
A public hearing on the village's proposed property tax levy is Dec. 4, Finance Director David Danielson said.