Wauconda to make good on utility tax cut pledge, officials say

Wauconda officials say they plan to follow through on their promise to cut residents' utility taxes by 50 percent later this year.

“The board is considering doing something which is relatively unheard of today which is reducing taxes. And not just one tax, but three,” village attorney Rudy Magna said at Tuesday night's committee of the whole meeting.

The board will vote on cutting the municipal tax for electricity, natural gas and telecommunications at its Jan. 18 meeting, officials said.

The village had promised last November to cut the municipal portion of residents' utility taxes by 50 percent if voters supported a referendum to be included in the Wauconda Fire Protection District. The village previously spent about $2 million a year from the village budget to contract for fire district services.

The change would shift that cost directly to property tax bills for village residents.

“It really is a pleasure to tell our residents we are reducing the tax rate for them,” Mayor Mark Knigge said. “They really did step up for us in the fire district referendum vote. We told them this is what we were going to do, which doesn't always happen, but thanks to the board and the voters we can follow through.”

Knigge said residents can expect to save about $159 per year with the utility tax cuts. This will help offset the increase to the property tax bill for the fire district, which would be about $269 in the first year for the owner of a $200,000 home.

Magna said the gas and electric taxes will be reduced effective May 1, and the reduction to the telecommunications tax will be implemented July 1.

Trustee Patrick Murphy said the village will continue to review its finances and make further cuts so the village can eliminate this tax.