Forest preserve district says tax caps could hinder pursuit of projects

The Lake County Forest Preserve District may pursue state legislation to loosen restrictions on its ability to raise taxes to operate and maintain future projects.

District staff are working on an addition to the district's legislative program to increase the maximum allowable tax levy rates for general corporate and land development purposes.

The forest board's legislative and finance committees have given the staff direction to draft a resolution for official action.

Both bodies will review the resolution next month, with a vote by the full board expected April 9.

If the resolution advances, the district would work with its consultant, Strategic Advocacy Group, on language for legislation to be presented to the General Assembly.

If signed into law, the new maximum tax rates would allow the forest district the option of asking taxpayers via referendum for more money than currently allowed.

The new rates would be set in the legislation. If the rates are increased by the state, when or if the current or a future board would want to ask taxpayers for more money is unknown.

"There are a lot of steps, and if at any step we get a 'no,' we're done," said Mike Tully, the district's chief operations officer. "This wouldn't do anything to our taxes immediately; it's just setting it up to ask voters."

Discussion has been ongoing about the district's potential inability to operate and maintain future land acquisition, public access and habitat restoration projects.

Even if money were available to proceed with a project, officials say, the district under current limitations can't raise funds to operate the projects over the long term.

That's because the Downstate Forest Preserve District Act caps the tax rates and the Property Tax Extension Limitation Law caps the amount of dollars an entity can ask for in a tax levy.

With some exceptions, the levy cap limits the amount of an increase in a given year to 5 percent or the Consumer Price Index, whichever is lower.

The CPI has been at or lower than 2 percent in recent years.

The levy cap allows a taxing district to ask voters to approve more. In that scenario, the forest board would have to ask for a specific percentage increase to the levy.

However, as it stands, even if voters approved, the amount the district could collect would be negated because of the current rate maximums.

Property values dropped dramatically during the Great Recession, and even while tax rates rose to statutory maximums, the dollars the district collected for general corporate and land development decreased each year from 2009 to 2014.

The rates remain at or near that level, and, with the tax cap, the district says it has little room to raise money and has challenges meeting operational expenses.