E. Dundee seeks maximum tax increase

East Dundee officials are requesting the maximum double-digit hike in the village's 2008 property tax levy, a number village officials say will likely go down before property tax rates are set early next year.

The proposed property tax levy of $622,200 is a 20 percent increase over last year's tax levy extension of $518,800, Village President Dan O'Leary said Monday.

State law limits a tax levy increase to 20 percent.

A portion of the increase is attributed to new construction in the Prairie Lakes subdivision on Route 68, but officials estimate the actual levy amount will be significantly less than the proposed figure.

That's because taxing bodies typically overestimate levies to make up for gains in taxable property. An underestimation of tax levies would result in a loss of tax dollars if the actual amount of tax dollars exceeds the levy amount.

"The increase is consistent with what we have done in previous years," O'Leary said. "We plan high and then readjust."

Finance Manager Nick Cinquegrani estimated the village's property tax rate would increase from about 42 cents per $100 of a property's equalized assessed value to more than 48 cents per $100 of a property's equalized assessed value.

The tax levy is based on the village's equalized assessed value - or the total value of property in the community - as determined by the property assessors in Cook and Kane counties.

The village's estimated equalized assessed value for 2008 is more than $128.1 million, a 4.28 percent increase over 2007's value of about $122.9 million.

An accurate 2008 value will not be released until late winter or early spring, Village Administrator Frank Koehler said.

Village trustees said they expect the tax rate to go up about 4 percent.

The village board will hold a public hearing on the tax levy at 7 p.m., Monday, Dec. 15, at village hall.