Glen Ellyn considers making tax permanent

Glen Ellyn village leaders discussed plans for the 2008 property tax levy Monday night, and part of the plan includes a permanent charge to offset rising costs for future street improvement projects.

The village's total property tax levy is projected to increase by 2.3 percent from last year, and Glen Ellyn Public Library's is up 5.8 percent.

If approved, part of the deal is the levy will not rebate property tax dollars to residents for retiring bonds. The payments would become fixed to fund inflation costs of the ongoing, 20-year street improvement project.

Village officials approved a preliminary property tax estimate Monday night, but the final ordinance will be voted on Nov. 10.

Because Glen Ellyn has home-rule powers, voters don't have to approve the decision. Village officials had two public meetings to discuss the idea.

Officials said if the village does retire old bonds, leaders would have to issue future debt or not continue the planned maintenance.

The village is running about $3 million short annually to pay for the 20-year improvement plan. If the tax becomes permanent, about $3.1 million a year is expected to be generated-enough to keep road improvements on schedule.

Finance Director Jon Batek said the extra money would bridge a significant funding gap in the street and sewer improvement program.

The extra money is needed because of declining revenue sources, inflation and expanding the scope of many projects due to more unexpected repair needs within the last eight years, he said.

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.

If the village approves the tax levy, these bonds would not be retired.