Politics & Government

Village Officials: Property Taxes Should Stay the Same, Despite Rate Increase

With property values still dropping in 2011, the village of Montgomery is moving ahead with a slightly higher property tax rate. But Finance Director Jeff Zoephel says your village taxes should stay about the same.

With home values dropping once again, the plans to ask for a higher tax levy next year than it did in 2011. But your actual village property taxes should stay about the same, according to Finance Director Jeff Zoephel.

The equalized assessed valuation in Montgomery, both Kane and Kendall counties, is expected to drop another one percent in 2011, after plummeting eight percent in 2010, Zoephel explained at a Committee of the Whole meeting last week. Property values went down an estimated total of $28 million across the village, Zoephel said.

In order to make up the same amount in property taxes, the village has to raise the levy. And they need that money, officials say, partially because the cost of doing business continues to rise. Police pension, insurance and Illinois Municipal Retirement Fund costs are quickly increasing, Zoephel said—police pension costs, for instance, jumped from $238,744 in 2009 to roughly $411,000 in 2011. 

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So the tax rate is going up, but not by much, since the amount of the increase is limited by law. The rate will likely rise from 41 cents to an estimated 42 cents per $100 of EAV, and with assessed values still going down, Zoephel believes that will keep most Montgomery taxpayers paying about the same amount next year as they did this year.

By way of illustration, Zoephel said that a home worth $250,000 in 2009 is likely worth about $220,900 now. The owner of that home would have paid around $307 in village property taxes in 2009, and will pay about $313 next year.

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“The village portion of the tax bill should stay relatively stable,” Zoephel said, noting that Montgomery is only responsible for a portion, with school districts and other governmental entities taking their share as well. “I can’t speak for your overall tax bill,” he said.

Zoephel also pointed out that even with the increased levy, Montgomery would still have one of the lowest property tax rates in the Fox Valley. The highest is Aurora, at $1.72 per $100 of EAV, with Yorkville clocking in at 90 cents, Geneva at 60 cents, and North Aurora at 50 cents.

Only Oswego currently beats Montgomery, with a tax rate of about 15 cents per $100 of EAV, but Zoephel said that village keeps their rates “artificially low.”

The idea of raising the rate did not sit well with Trustee Andy Kaczmarek, who asked whether Montgomery could adopt the same philosophy as Oswego to save residents money. But the notion of dropping revenues even further, and having to cut more out of the budget, angered Trustee Denny Lee.

“What do you want to cut costs for when we have a balanced budget?” he asked, noting the cutbacks Montgomery has made over the past few years.

“I’m just making suggestions to cut costs,” Kaczmarek shot back. “I don’t hear you making any suggestions.”

The five Village Board members present (Trustee Stan Bond was absent) agreed to let Zoephel proceed with the levy amount he’d calculated, and incorporate it into the Fiscal Year 2013 budget, a draft of which is expected in February. Village Manager Anne Marie Gaura said the tax rate will still be low, considering what those taxes buy for Montgomery residents.

“For $300 for an average value of a home, it’s an incredible value for the services we provide,” she said.


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