Village president: Tax hike gives Sleepy Hollow 'breathing room'

A referendum proposal to raise property taxes in Sleepy Hollow narrowly passed last week, but Village President Stephan Pickett isn't getting ahead of himself.

On March 15, voters approved a 33 percent property tax hike 610 to 588 votes, according to unofficial election results. Village officials are operating under the assumption the 22-vote lead will hold, Pickett said, but the results could shift depending on how many mail-in ballots Kane County receives from voters.

"The caveat to this whole thing is that the county has yet to certify the election results," he said. "There's still a possibility that things could change."

The tax increase is expected to generate an additional $180,000 in annual revenue from the village's more than 3,300 residents. The owner of a home with an assessed value of $200,000 would pay $132 more in property taxes per year.

The additional revenue will go toward the village's general fund, road improvements and a depleting five-year capital fund for long-term expenses.

But it'll be a while before Sleepy Hollow will reap the benefits of a tax hike, Pickett said, as the village won't start collecting the additional funds until June 2017.

"There's not some spending spree coming up. We've still got to be prudent and watch the bottom line and watch our expenditures," he said. "It gives us some breathing room now in planning, but it won't be immediate."

The village's third request in two years for a property tax hike was its only successful attempt. Last April, a referendum proposal asking for an 82 percent increase was shot down by more than 80 percent of voters, and a similar request was denied in November 2014.

Fearing voters would deny a third request, officials this time requested a smaller increase that would temporarily hold over the village. Fortunately, Pickett said, the election played out in Sleepy Hollow's favor.

"I'm pleasantly surprised," he said. "I was really holding my breath on that one."

The tax increase is enough to keep the village afloat for two to three years, at which point officials will likely have to return to the voters with another request, Pickett said.

"We're kicking the can down the road," he said. "And we're going to come back up on that can very shortly."