Carpentersville: Residents Will See Lower Tax Rate With FY2017 Budget
As Carpentersville grows, the village’s tax rate declines.
That was the message from village officials, who announced in a news release last week the details of the village’s $30 million FY2017 General Fund budget.
To be exact, the FY2017 General Fund levy is $30,612,603, an increase of about $166,341 year over year. According to the release, while the village’s overall tax levy will increase by 1.28 percent, the village’s portion of the estimated total tax rate will decrease by 12 percent.
“This decrease is primarily the result of the increase in the village’s Equalized Assessed Value,” the release says. “As the EAV rises, the corresponding tax rate can be lowered and still achieve the same tax levy dollars as the year before.”
Village officials said they are especially proud of the tax rate decrease because they are continuing to invest in infrastructure improvements.
“The village continues to provide excellent services from all of our departments at minimum financial output by carefully monitoring every expense, while striving for maximum efficiency by every staff member,” said Village President Ed Ritter. “Our goals (continue to be) courtesy, service, and efficiency.”
Officials could have levied more under state tax-cap legislation, but settled for the 1.28 percent increase in the General Fund.
“The most important thing to look at is the levy, because that’s really where you’re going to pay your tax dollars,” said Trustee Paul Humpfer.
The village is lowering its rate by keeping the corporate tax levy flat, at $7.5 million, and reducing the debt service levy by $209,519, or 9.93 percent. The village was able to reduce the debt levy because of the increased savings from recent bond refunding, the news release said.
“We are constantly looking at every avenue that may save the village and its taxpayers’ money,” said Finance Director Hitesh Desai. “There will be no extension of the maturity, as this is simply issuing new bonds at a lower rate to retire the older, higher rate bonds.
“With the EAV going up, we are still able to run our general operations while also giving tax rate relief to our citizens, despite the annual increases to contractual and maintenance services, health insurance, union and non-union personnel wages, and other overhead costs.”
The only increase to the tax levy is the result of a 10.88 percent increase in Police and Fire Pension costs, the village said.
“The village is following the pension funds actuarial report regarding the need to fully fund our obligation to the police and fire pensions,” said Village Manager Mark Rooney. “The village continues to fund both police and fire pensions at a level that is higher than the state’s mandated minimum funding level, as it is the Village Board’s intention to meet our local obligations rather than follow the poor example of the state of Illinois’ insufficient pension funding practices.”
The village expects to close FY2016 with a modest surplus in the General Fund.
“That’s very encouraging,” said Trustee Kevin Rehberg. “It shows some great fiscal management, especially in this climate.”
To access the village FY 2017 budget documents and get a detailed overview of expected departmental expenditures, please go to the “Services” tab on the village of Carpentersville website and click on “Finance,” then “Budget.”
- Click here for the village of Carpentersville 2017 Proposed Budget.
- Click here for the village of Carpentersville budget overview.
The official vote to adopt the FY 2017 budget will be held at the Village Board meeting on Tuesday, Dec. 6.
SOURCE: village of Carpentersville news release
