Wheeling may not raise tax levy for 2007

Wheeling residents will be seeing stability in at least a portion of their tax bills for this year.

The village board will likely vote next Monday not to increase the 2007 tax levy to more than the 2006 levy of $8,821,051.

However, the move didn't come without any argument from the board.

The idea initially came up last month, when Trustee Dean Argiris said a 5.25 percent increase in the tax levy -- as the village staff was recommending -- was unnecessary with a surplus in Wheeling's funds.

Plus, Argiris said, with Cook County reassessments this year, most homeowners will be paying more money anyway.

"I'm looking at today; today we are fortunate enough to have a surplus," he said.

Michael Mondschain, the village finance director, laid out both options -- no increase or 5.25 percent increase -- and what they would mean down the road.

He said the village would be looking at about $460,000 in additional revenue with an increase. The revenue would go to pay for new debt -- Wheeling recently decided to issue $40 million in bonds -- as well as the police and fire pension funds.

He said a little more than $440,000 is already being used from the general fund to cover those costs, and that that amount would jump to about $907,000 without an increase in the levy.

Mondschain said there is $18 million in general fund reserves, but Wheeling's stable revenue sources do not generally grow at the same amount as expenses.

He also said that since the $460,000 will not be added to the tax base, it won't come into play in future years, when the levy is increased by a percentage amount.

"My goal has always been to smooth (the annual levy amounts) out," Mondschain said.

Otherwise, he warned, the village may need to increase the levy by 11 percent or 12 percent in a few years.

Trustees Pat Horcher, Mike Horcher and Interim Village President Judy Abruscato agreed with this assessment, but Argiris, Robert Heer and Ken Brady said the village can afford to give residents and businesses a break for a year.

The board directed Mondschain and village staff to prepare for no increase in the tax levy. The board will vote on a final 2007 tax levy next Monday.