Village Plans For Property Tax Levy
Board of trustees could raise property taxes by about 3 percent.
Glen Ellyn leaders are examining the probability of a property tax levy later this year.
The deadline for filing a levy with the county clerk is the last Tuesday in December.
The village uses property tax dollars for two general purposes – operations and bond payments. About two-thirds of property tax dollars goes to village operations and the rest go to bond repayment.
Larry Noller, assistant financial director, said the village takes a conservative approach to relying on property taxes. Noller said since Glen Ellyn became a home rule unit of government in 1994 the village still elects to operate under the restrictions of a non-home rule unit of government. Those restrictions mean the local government cannot levy more than a 5 percent increase on property taxes annually.
Noller said the village is looking at levying an increase of "around 3 percent," which should amount to about $10.2 million.
"This is an annual process we go through," Noller said.
Noller said it's important to realize that a portion of the tax money will go to pay off a portion of bond debt. On Oct. 11 the Village of Glen Ellyn Board of Trustees unanimously approved a measure to refinance general obligation bonds worth about $6.2 million. With interest rates at historic lows, the village decided that now was the time to refinance.
Village Financial Director Jon Batek said refinancing will save the village about $320,000.
Village manager Steve Jones said the proposed levy will not be presented to the village board until the Nov. 8 meeting. However, he said the board of trustees will not vote on it until after public hearings are held.
"This is a month-and-a-half to two month process," Jones said.
In a memo to the village board about the proposed levy, Jones said village staff has been in "cutback mode" over the past two budget cycles. He said by eliminating positions, deferring some capital related expenses and holding the line on new initiatives, the village has been able to weather the tough economic times. He said departments are feeling the strain from the cutbacks and a lack of anticipated revenues will require the levy.
"It is my recommendation that we maintain the tax levy philosophy and plan for a third fiscal year of limited resources. While this may limit our ability to accomplish projects or activities (an unfortunately continue the frustration and strain previously mentioned), it will insure that we maintain a sustainable level of service delivery and not compromise our property tax cap tradition," Jones said in the memo.
Jones said there will be time for the residents of Glen Ellyn to hear the trustees make the case for raising the property taxes.