Hawthorn Woods proposes a new tax for road repairs
Hawthorn Woods again will be asking voters to fund a road repair and maintenance program.
The village plans to place a referendum question on the June 28 primary ballot seeking a dedicated tax for roadwork. But it will differ from the "Hawthorn Woods Paves the Way" measure that was defeated by a nearly 3 to 2 ratio, according to the village.
"Still Working to Pave the Way" would replace current special service area taxes with a single, villagewide tax, which officials say would be more equitable.
And rather than borrowing money upfront and paying interest over a long term, road projects would be done each year based on the amount of new taxes collected, according to the proposal.
The village for some time has been seeking a reliable annual funding source to repair and replace roads and large diameter culverts, which can cause roads to collapse if they fail.
All the maintenance, repair, reconstruction and culvert replacement associated with 55 miles of village roads could cost about $28 million over the next 15 to 20 years.
As proposed, three special service area tax rates, which expire in December, would be replaced with a villagewide roadwork tax of 18 cents per $100 of assessed valuation.
The new tax would generate $900,000 annually. The owner of a property with a market value of $500,000 would pay about $290 yearly.
"Year 2022 is the last year the road SSA taxes will be collected," according to information on the village website. "If the proposed referendum is successful, a more equitable funding program would replace the current SSA road bond."
The special service area taxes for roads were established in 2003. Some residents pay more than others, while some pay no property taxes for roads because their subdivisions were not part of the village at the time.
Special service area proceeds are being used to pay off the debt on bonds used to fund work that since has been completed, according to Erika Frable, public works director and village engineer.
"We're not using any of that money to fix our roads now," she said.
The village usually spends about $110,000 yearly on road maintenance but has spent only $10,000 to $20,000 each of the past two years, she said.
"The only thing we've done is in-house patching," Frable said.
If approved, the new road tax would begin in 2023, when the current special service areas will have expired and won't appear on tax bills. The $30 vehicle sticker fee also would be eliminated, the village said. Road conditions worsen and repair expenses increase every year a program is delayed, the village contends.
"We haven't had enough money to do what we need to do to maintain roads in the most efficient way," Frable said. "Our roads are going beyond the maintenance trigger."
A resident volunteer committee supporting the new tax will assemble later this month. Open houses, informational meetings and other education measures are expected going forward.