Glen Ellyn considering permanent fee for street improvements
Instead of lowering property taxes, Glen Ellyn officials might implement a permanent fee to offset rising costs for future street improvement projects.
This year's tax levy, which will be voted on next month, may not rebate property tax dollars to residents for retiring bonds. The payments may become fixed to fund inflation costs of the ongoing, 20-year street improvement project.
Because Glen Ellyn has home rule powers, voters don't have to approve the decision.
"Basically, the village, as a home rule community, has the authority to approve this change in how the property tax dollars are used," said Bob Minix, Glen Ellyn's professional engineer. "The village board is ready to act on this as part of the upcoming 2008 tax levy process and approve this redirecting of property tax dollars."
In 1987, Glen Ellyn voters approved a property tax increase to fund $15 million of street improvements. And in 2000, they supported an increase to fund another $18 million in improvements.
The 1987 bonds are set to expire this year, and three sets of the 2000 bonds will be paid off within six years.
Due to inflation costs, the village is running short - about $3 million annually - to pay for the 20-year street improvement plan.
By making the tax permanent, about $3.1 million a year is expected to be generated - enough to keep road improvements on schedule.
If village leaders decide to reject the proposal, the owner of a $500,000 house would save $385 each year.
Minix said leaders will review the plan annually.
"We'll keep a close eye on both costs and revenues," he said. "So if either gets way out of balance, we'll make recommendations necessary to deal with any shortfalls or surpluses.
Glen Ellyn already has had a couple public hearings on the issue. The topic next will be discussed on Oct. 27 during the village's first tax levy hearing.