La Grange trustees approve a 4.6 % property tax levy increase

The La Grange Village Board recently approved the 2022 Property Tax Levy with a 4.6 % increase over the previous year’s levy.

When the Board of Trustees originally discussed a property tax estimate at its Nov. 14 meeting, the original proposal of a 5.6 % increase met with opposition from most Trustees.

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“My feeling is that we’ve got good reserves and we’ve got added revenue,” Trustee Lou Gale said at the time.

Only Trustee Peggy Peterson dissented by voting in favor of the original 5.6 % proposal, noting that the Village faced financial challenges from a new Police contract, competitive salaries and significant Fire and Police pension obligations.

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The revised, final levy means a homeowner’s property valued at an estimated $500,000 will increase $62.13. Since the La Grange Public Library is a municipal library, and not a separate taxing body, the Library’s levy will add another $19.65 to the same homeowner’s tax bill.

The Village and Library share of a property owner’s tax bill is 13.2 %, 9.3 % going to Village operations and 3.9 % to the Library.

Under the Illinois Property Tax Extension Limitation Law (PTELL), a village’s operating levy must be 5 % or the Consumer Price Index, whichever is lower.

Last year’s CPI was 7 %, meaning the Village would have been exceeding the PTELL limit without a required referendum, and would have far exceeded La Grange’s average of a 2.2 % levy enacted since PTELL’s inception in 1993.

While the revised estimate falls under 5 %, meaning no public hearing is required, the Village still scheduled one immediately preceding the Board meeting, but no member of the public spoke.

The Levy of 4.6 % includes 4 % reflecting the known value of the Village’s property, and .6 % for new construction in the Village.

Since the total new construction won’t be known until Spring 2023, Cook County will automatically adjust the figure down if it exceeds PTELL limits.

The Total levy will come to $11,788,163, including $2,769,651 for the Library, library debt service of $624,750, and $103,980 for Special Service Area levy 7, which funds improvements in the downtown business district.

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Neither the debt service or SSA 7 are subject to PTELL limitations.

The Levy will include $1,540,767 for police protection, an identical levy for fire protection, $1,826,660 for police pension, and $1,400,833 for fire pension.

The Board also unanimously approved the formal abatement of the levies on two series of General Obligation bonds.

The first series was issued in 2012, and was for new water meters for the Village, and improvements to the Village’s Water Pumping Station at Plainfield Road and East Avenue. The bonds were valued at $2.08 million, but through water sales the Village was able to cover the cost of the bonds maturing in fiscal year 2023-2024 at a total of $127,630.

The second series was issued in 2015 for $14.5 million to make improvements to the village’s sewer infrastructure.

The abatement of these bonds maturing in fiscal year 2023-2024 was made possible by revenue from sales taxes, utility taxes, telecommunication taxes, and sewer sales. The total abated is $991,831.

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The next La Grange Village Board meeting will be 7:30 p.m. Jan. 9, at the La Grange Village Hall, 53 S. La Grange Rd.

Hank Beckman is a freelance reporter for Pioneer Press.