East Dundee trustees supporting 32 percent property tax levy hike

A 32 percent property tax levy hike proposed in East Dundee goes hand-in-hand with trustees' decision to more aggressively fund public pensions.

After keeping the levy relatively flat the last five years, the village board is considering collecting $749,982 in property taxes for 2017 - a $183,589 increase over the previous year - in hopes of avoiding a future pension shortfall.

The move would set the village on track to fully fund pension costs by 2036, as recommended by an independent actuary, Village Administrator Jennifer Johnsen said. State law requires municipalities to fund 90 percent by 2040.

East Dundee has been contributing the statutory minimum for several years, and its police pension fund is about 52 percent funded, Johnsen said. So as not to fall behind on pension payments, she initially recommended a 13 percent levy increase, which would have collected an additional $75,000 annually.

Trustees this week agreed taking a more aggressive approach now would put the village in a better position in the future. The village board unanimously approved pushing forward the higher tax levy proposal, which will require a public hearing before trustees cast their final votes next month.

"I don't want to see a whopper of an increase five years from now," Trustee Jeff Lynam said. "The further we kick it down the road, we're not doing ourselves any service, so it's going to be a Band-Aid we need to just rip right off."

If the measure is approved, the owner of a $175,000 home would pay about $114 more in property taxes each year, Johnsen said.

Trustee also decided against rolling garbage collection costs into the property tax levy.

The village in September started charging each residence a $19.80 monthly refuse fee, which appears on residents' bimonthly water bills. The ordinance includes a sunset clause that requires the village board to re-evaluate the fee each year.

"My fear is we roll this into the taxes and just leave it there forever and forget about it," Trustee Scott Andresen said. "I'd like to see the refuse fee eventually go away because that's what the residents were promised."