Proposed levy intended to capture new growth

By on October 15, 2010

Board will vote on final proposal Nov. 15
by Martha Quetsch
ELBURN—Village Administrator Erin Willrett on Tuesday presented the village’s tentative 2010 property tax levy of $939,718.

The tentative levy is the amount that village officials are considering asking Kane County to approve as the total 2010 property taxes for the village next year (the property tax extension).

The property tax levy is 47 percent more than the actual property tax extension in 2009, Willrett told the Finance Committee. The village, like many taxing bodies, sets its annual levy request on the high side, although it may not receive county approval of the entire amount.

“It is important to recognize that last year, $742,321 was requested from the village to be levied and $637,404 was extended from the county,” Willrett said.

Under the state’s Property Tax Extension Limitation Law, if the village did not propose a levy high enough to capture all new property growth that occurred during the year, that growth would never be added to the tax rolls.

Municipalities present their property tax levies to the county by the end of each year. The county, in the spring, determines the actual amount each municipality will receive, as well as the property tax rate. The county bases those figures on the municipality’s total equalized assessed valuation (EAV) and property growth in the town the previous year.

The village had little new growth in 2010, so it expects to capture it all on the tax rolls through the higher levy request, Finance Committee member Bill Grabarek said.

“There is not a whole lot going on in terms of bricks and mortar. I think we have issued only two residential building permits in the last year,” Grabarek said.

Total EAV in Elburn in 2009 was $199 million, compared to an estimated $189 million in 2010, Willrett said.

The Finance Committee in a consensus vote recommended the tentative levy to the Village Board, which will vote on it Monday, Oct. 18. Then, the proposed levy will be available for public inspection from that date through Monday, Nov. 15, when the board will hold a public hearing and approve the final levy to submit to Kane County by Dec. 28.