Residents of Lake Bluff will see an average increase of $23 on the property tax bills for the village government and library next year, according to village officials.
The village board approved a levy increase of 1.39 percent at a December meeting. Of that increase, officials said .8 percent is due to inflation and the rest is because of new construction, mostly the Target and nearby stores that opened this year on Rockland Road. In dollars, the total levy request is $4,079,460, according to village data.
That increase of $23 assumes an average home value of $600,000, said Susan Griffin, finance director for the village.
Individual homes could pay more or less depending on their assessed value.
“It’s like a balloon,” said Griffin. “If you squeeze it at one end, the air goes to the other end. So if my neighbor’s value goes up, mine might be less.”
According to village officials, property taxes are the second-largest source of revenue for the village for the first time since 2007. The largest single source of revenue is sales tax from automobile sales, Griffin said. While the village is happy to get the sales tax from vehicle sales, she said, relying heavily on it could be a concern.
“We could see a drop of $100,000 to $200,000 in any year if auto sales decline,” Griffin said. “That becomes a significant part of our budget.”
The village also receives money from the state. With uncertainty over whether lawmakers in Springfield will approve a property tax freeze or other reductions in revenue, officials said the village plans to take a conservative approach in its budget process for the next fiscal year.
“We are proceeding very cautiously, financially,” said Village President Kathleen O’Hara.
Over the last six years, the village has dropped from 50 to 35 employees, Griffin said, adding that she thinks the number of employees won’t decrease further unless there are technological advances.
The village also joined with three neighboring communities last year to share the cost of emergency dispatch services.
Other potential concerns include returns on pension fund investments for police and other village employees and an underfunded capital equipment fund. The village lowered its contribution to the capital equipment fund – used to buy such items as street sweepers, fire engines or bucket trucks – during fiscal 2008.
“We started to ramp it up in this budget year and hope to get it back to where it needs to be in the next budget year starting in May 2016,” Griffin said.
There was positive fiscal news, as well.
Officials said Target and accompanying businesses that have opened over the summer are expected to give a boost to sales tax, though specific numbers won’t be available from the state until early 2016. The village has also has a healthy amount of savings.
“The 2015 fund balance is the highest it’s been in the 25 years I’ve been here,” Griffin said.
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