Downers Grove to Reduce Property Tax Levy with New Stormwater Fee
The village council voted unanimously Tuesday to adopt its 2013 budget, which implements the new stormwater utility and includes a $1.98 million reduction to the property tax levy.
For the second straight year, Downers Grove officials are expected to approve a reduction in the annual tax levy—a result of the village's newly adopted stormwater utility.
The village council voted unanimously Tuesday to approve the 2012-13 municipal budget, as well as an estimated levy. The budget implements a new village-wide stormwater fee, includes a $1.98 million reduction to the property tax levy and presents a balanced budget for general fund.
The FY13 budget is the fourth annual budget prepared using the recommendations of the Long Range Financial Plan (LRFP), and includes a specific action plan for the general fund budget, officials said.
While the village's general fund is balanced at $41.6 million, the total budget projects $124.6 million in expenses and $104.7 million in revenues across all funds. The imbalance accounts for the village's investment of proceeds from recent bond issuances in street, water and stormwater infrastructure improvements, officials said.
The 2013 budget allots $27.24 million for infrastructure improvements, including $14.51 million for streets, $6.37 million for the water system, $2.68 million for stormwater infrastructure and $1.24 million for sidewalks.
The estimated levy approved by the council Tuesday—which generally accounts for 10 percent of the total tax bill—was $16,215,187, which includes the levy for the village, special service areas and the public library. The village portion after abatements is about $11 million—a $1.98 million reduction from the 2012 levy.
The reduction, officials said, reflects the shift in funding for the village's stormwater fund from property taxes to stormwater fees. The levy for all stormwater-related activities—including operations, maintenance, capital projects and debt service payments on the 2008 stormwater bonds—has been removed from the tax levy, resulting in a reduction of $2.47 million.
The Downers Grove village council voted 5-2 in August to adopt the stormwater utility system, which has been in the works since 2003. Commissioners William Waldack and Bob Barnett both voted against the ordinance, citing several concerns about moving away from the property tax system, such as the loss of tax deductions and the creation of more bureaucracy.
The monthly fee will be determined by how much stormwater runoff each property generates, which officials say is more equitable and will create a stable source of funding for much-needed repairs and maintenance to the village’s stormwater infrastructure.
Under the utility, fees will be calculated based equivalent runoff units (ERU), or the area on each property that cannot absorb water, such as a roof or driveway. One ERU equals 3,300 square feet.
Single-family homes fall into three tiers of payment, depending on their size:
- 1-2,500 square feet: $6.30 per ERU
- 2,501-4,000 square feet: $8.40. per ERU
- 4,001-7,000 square feet: $12.60 per ERU
All stormwater fees will be collected on a common utility bill from the village. Residents on the south side of Downers Grove will receive their first bill Jan. 2, 2013, and residents on the north side will be billed Feb. 1.
The utility is expected to generate $3.5 million in revenue for the village next year, officials said.
The tax levy will be formally approved at the Dec. 11 meeting of the Downers Grove village council.
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Dan F.
7:51 am on Thursday, November 15, 2012
Just saying, how about start on the south side, and wait on the north side until they figure out all the kinks. We can wait.
Only government can spend $20 million more than they take in and claim they have a balanced budget!
Martin Tully
5:02 pm on Tuesday, November 20, 2012
Dan, as the article partially explains, the amount planned to be spent in FY2013 over what is expected to be taken in in revenue over that same period is due to the fact that there will be planned spend-downs of bond proceeds received in earlier fiscal periods to fix roads and other infrastructure. Thus, we're not spending more than we are taking in, and the general fund is completely balanced. No "fuzzy math" there, just an unavoidable lack of details in a news blurb that are readily available on the Village website. Happy to answer any other questions you may have.
Amanda Luevano
5:15 pm on Tuesday, November 20, 2012
Dan and Mayor Tully,
The lack of details was certainly not intentional. I included this sentence, "The imbalance accounts for the village's investment of proceeds from recent bond issuances in street, water and stormwater infrastructure improvements" though I understand if perhaps that was confusing. I apologize. I am happy to follow up and clarify if necessary. It's always a challenge to write about municipal budgets in a way that is both clear and concise for readers, but I'm always willing to add to a story if it will help readers better understand the topic at hand.
goddess
10:27 am on Thursday, November 15, 2012
Aren't republicans supposed to be reducing the size of government? How long until these guys have their own buildings, cars, trucks, uniforms, stationary, etc.? Maybe I'm not understanding the math, but the village is cutting their tax levy by about $2 million and the new utility is going to raise about $3.5 million? So, we'll be paying more and writing off less. How is this good for us? What am I missing?
Dan F.
5:10 pm on Thursday, November 15, 2012
Shhhhh...
Kent Frederick
5:31 pm on Friday, November 16, 2012
Remember that some entities that don't pay property taxes, due to tax exempt status, will be paying the utility fee, including churches and Good Sam Hospital. The idea is that a lot of places that don't pay taxes contribute to the storm run-off problems with large parking lots and such.
Martin Tully
5:12 pm on Tuesday, November 20, 2012
Kent is correct, the increment comes from the fact that there are more payers under the fee-based system than the old property tax-based system, thus generating more revenue overall. This is good for most residents because the burden of stormwater maintenance and infrastructure is more equitable shared by more of those who contribute to the run-off that much be managed in compliance with federal law. Under the old system, residential properties only contributed about 45% of the stormwater run-off but were shouldering about 75% of the cost to do so. That just did not seem very fair.
PAUL C.
12:11 pm on Thursday, November 15, 2012
I am convinced that government at any level always wants more. It's the new America we live in. The government WANTS more because the citizens WANT more. This obvious in cook county isn't it? The deficit in Chicago and Cook County is astounding and the citizens keep reelcting these idiots!
J. Geoff Rove
7:29 pm on Thursday, November 15, 2012
I can't wait for all the lawsuits over this goofy billing on ERUs. No consideration is given to the amount of empty land vs. the building's area. And no clear definitions of what is needed for the $250 rebates either. But thats typical for this bunch of clowns in charge.
William Waldack
2:58 pm on Friday, November 16, 2012
Paul is correct. Part of the reason government grows is because people want more. They complain about the condition of infrastructure, they want great response times, they want the maximum return for what they pay (whether taxes or fees). Add to that the mandates that are passed down. I still wager that the VILLAGE portion of your Property Tax bill is less than the average cable TV bill.
Because people want it NOW they pressure elected officials to do it all NOW, so they go out and borrow money (Bonds) to do it NOW. The last batch of bonds will cost over $11 M in interest which in and of itself fixes nothing. Future financial planning calls for more borrowing (laddering debt) calling for more interest payments.
By the way, I did vote against both the Stormwater Utility and the Bonding. I did not like the SU since it first was discussed about a decade ago and the new version did not change my mind. Some may feel that was the correct thing to do, some may not.
Just sharing
Jeffrey Crane
7:17 am on Saturday, November 17, 2012
Fuzzy math. My property taxes go up each year between $300 and $500. The tax levy savings from the storm water reduction amounts to $120 dollars a year. But that savings is mostly transferred to the new utility bill. This isn't really about saving you money but more about parsing out how much is being spent for storm water maintenance in Downers Grove. Here's an interesting read........
http://www.reuters.com/article/2012/11/13/us-bernardino-bankrupt-idUSBRE8AC0HP20121113
www.dggab.com
Kent Frederick
11:20 am on Saturday, November 17, 2012
Does you entire bill go up $300 to $500 a year, or just the portion that the Village levies? Remember that your tax bill pays for the County, District 58, District 99, Downers Grove Township, etc.
I figured that between the decrease in the Village's levy and the stormwater fee, I will pay about $30 a year less to the Village. Not a lot, but it pays for a couple of family lunches at McDonald's.
Jeffrey Crane
3:48 pm on Tuesday, November 20, 2012
Don't go spending that $30 dollars too fast. With one hand they giveth and with the other they take even more away. Water rates going up 25% this year and double digits for the foreseeable future.
http://www.downers.us/public/docs/agendas/2012/11-20-12/REP00-05092_BUDGET_IMPLEMENTATION.pdf
Martin Tully
4:56 pm on Tuesday, November 20, 2012
Right, except we don't drive those water rate increases you reference, Jeff. The City of Chicago by way of the DuPage County Water Commission does. We do a pretty darn good job for what we control, like reducing the Village property tax levy two years running. But don't take my word for it, please do an apples-to-apples comparison with like communities.
Jeffrey Crane
5:56 pm on Tuesday, November 20, 2012
The clarification is correct, but that doesn't lessen the burden on already overburdened taxpayers. Can you quantify the property tax levy reduction for the last two years?
Helen G.
11:57 am on Sunday, December 9, 2012
Fee calculation is really goofy. Some households with limited income and low home value might be paying more just because of long driveway.Who will calculate how much water is being absorbed ALONG that driveway?
Did anyone notice 11 % fee increase per year for the next 10 years? I can bet our taxes will keep going up too.
I predict all Village of Downers Grove boses getting 100% credits for educating us while we will be paying more and more and it will never be enough.
300$ incentive for permeable pavement is laughable- do they REALLY know how much it cost?!!
Helen G.
11:59 am on Sunday, December 9, 2012
Tricked by people we voted for