Buffalo Grove approves budget, levy hike
Buffalo Grove trustees approved the village's $74 million 2016 budget Monday, along with a $15.4 million tax levy that is up about 3.2 percent to cover rising public safety and pension costs, officials said.
The levy hike should translate to a $35 increase on the property tax bill for the owner of a $300,000 home, officials previously said.
The budget anticipates total revenues of $79 million, said Finance Director Scott Anderson.
Anderson went through the three components of the levy - corporate, special purpose/pension and debt service.
The corporate levy, which funds the village's public safety operations, is $8.4 million, an increase of just over 4 percent. Last year, it was up 3.6 percent.
Anderson said the increase will fund wage hikes negotiated in collective bargaining agreements, as well rising health insurance costs and $2.6 million for new equipment for the fire and police departments. The total public safety budget is $26.7 million, 32 percent of which is covered by property taxes.
The pension levies amount to $6.1 million, an increase of 2.5 percent.
The debt service levy will consist of principle and interest payments of more than $807,000 on existing bonds, an increase of $2,250 over the previous levy.
Anderson addressed concerns raised at an earlier village board meeting by Trustee Jeffrey Berman, who noted that the amount of the levy increase next year is about the same as the combined increases over the previous five years.
Anderson explained how over the past three years, the village has seen a decrease in the debt service levy, which mitigated the need to increase the other two components of the levy. In the current levy, the debt service component will be basically level.
Berman thanked Anderson, noting how a memo presented by the finance director also was helpful.
"Now, at least, we have been presented with a factual basis and an explanation for the underlying request, and I believe we are in a better position to make an informed decision," Berman said.