Politics & Government

LITH Considers First Tax Levy Decrease in 19 Years

The Village Board will vote Thursday on the proposed decrease.

For the first time in recent years, village officials are considering a decrease in the property tax levy extension for the upcoming year.

, during its committee of the whole meeting Tuesday, agreed to place a resolution estimating the 2011 tax levy at $5.56 million on the Village Board agenda for Thursday night.

The levy represents a 1.2 percent decrease from the 2010 tax extension of $5.62 million, said village Finance Director Peter Stefan. The proposed decrease is the first in as many as 19 years, according to a village property trend analysis.

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Stefan said the decrease was possible because Lake in the Hills has seen a slight increase in sales tax revenues, about 10 percent, according to the Illinois Department of Revenue. Village officials consider many other factors when determining the tax levy, he said.

“It’s really about taking a look at the entire picture,” Stefan said. “We as a village are asking for less.”

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Whether or not homeowners see a decrease in their property tax bill remains to be seen. A property owner's tax rate is an equation that is figured after combining all of the taxing bodies that serve a community. 

Another determining factor — equalized assessed valuation figures for 2011 — are not yet available from the McHenry County Assessor’s office. Last year, EAV numbers for the village fell a considerable 12 percent. Village officials don’t expect to see that big of a drop this year, Stefan said.

As in previous years, administrators are recommending the abatement of the tax levies for debt service. The county has authorization to issue those taxes, but Lake in the Hills will file an ordinance asking the county not to extend the levies.

Instead, the village will pay for those debts from the general fund or from other revenue sources, Stefan said.

The $1.3 million in debt service is the result of three debt issues: One in 2004 for the purchase of parkland, one in 2006 for the public works facility and water main replacement program, and another in 2009 to refinance the debt issued to purchase the parkland in 2002.

Since the estimated levy for 2011 does not exceed the levy extension for 2010, a public hearing is not required for the Village Board to adopt the levy. Hearings are only needed when the levy exceeds the previous year’s levy by 5 percent.


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