Carpentersville considers property tax, water rate increases

There's a hole in Carpentersville's revenue bucket and the village will rely on residents to help plug it.

The village board will discuss options to overcome a projected $1.5 million general fund deficit, as well as an anticipated $900,000 gap in the village's water and sewer budget.

Trustees will consider increasing the water and sewer rate 7 percent, doubling the environmental fee from $3 per month to $6 per month and waiving the property tax levy abatement to boost revenues, which village leaders say would affect the property tax rate.

The village board could retain about $1.4 million in property tax abatements, which the village historically uses to repay bond debt, Finance Director Lisa Happ said.

If the village does forgo abatements, that could force the village's property tax rate to jump from a projected $1.35 per $100 of equalized assessed value to about $1.55, Village Manager Craig Anderson said.

"Whatever the village plans to do or not do with abatements affects the property tax rate," Anderson said.

Adding $3 to the village's monthly environmental fee - which is currently $3 per household - will generate about $360,000 for the general fund, Anderson said.

In addition, trustees will hash out a plan to improve the revenue outlook for the village's water and sewer fund, which is projected to lose about $900,000 in revenue next year. People are using less water with low-flow toilets and shower heads, the summer wasn't particularly hot, so water use was down and there are a number of vacant homes that aren't using any water.

A rate increase of up to 7 percent is expected.

"Because of the economy and because of all that is going on right now, we can't have the same service levels," Happ said. "The revenue options will not fully fund that difference and bring levels up to where they are currently, but they will at least make up some (of the difference)."

The village last raised water and sewer rates 9 percent in October 2008.