Elk Grove plans 10% hike in tax levy to fund infrastructure upgrades

The Elk Grove Village board gave preliminary approval to a 10% property tax hike - the first increase in the town's general property tax levy in 14 years.

The tax hike has been several months coming, as one piece of revenue plan discussed last spring to pay for $4.75 million in new annual expenditures that would ramp up street, sidewalk and rear-yard drainage upgrades.

Village trustees in May approved an increase in the municipal natural-gas use tax, followed by a new stormwater management fee in August. But the property tax hike would perhaps be the biggest hit.

The board Tuesday night unanimously agreed with the 2021 property tax levy determination proposed by the village's finance department; formal adoption of the tax levy and associated abatement ordinances is scheduled for Dec. 14.

Officials estimate the tax increase would cost the owner of an average $300,000 house $67 a year. The tax hike wouldn't appear on bills until August 2022.

Mayor Craig Johnson said the tax and fee hikes are necessary to fix Elk Grove's deteriorating roads and sidewalks, as well as flooding issues. He noted that other towns in the Northwest suburbs have included money for roadwork and infrastructure as part of their budget approvals in recent weeks.

"That work's going to be coming soon. It's long needed. We want to make sure everything is kept up to date," Johnson said.

The tax hike is expected to generate an extra $2 million a year for Elk Grove's capital projects.

If approved, it would be first time the board has raised its general fund levy since 2007, though trustees have regularly approved increases in the levies that cover police and fire pensions.

This year, they're holding the total pensions levy steady, while increasing the general levy.

The municipal government covers about 10% of an average tax bill; the majority goes to schools.