Tax Levy Increase Fails, 3-2

The decided voted not to increase the 2011 tax levy of 1.5 percent at the regular village board meeting Tuesday night. 

Cary Trustees Jeff Kraus, Bruce Kaplan and Karen Lukasik filed a no vote, with Trustees Robert Bragg and Ray Chisholm voting yes. Trustee Rick Dudek was not present at the meeting.

"What if we didn't increase the levy?" Kraus asked. 

In response, finance director Ron Pfeiffer said, "If the board indicates they don't want to increase the real estate taxes then we will tell the county there would be no increase and we would receive what we received last year."

Also, the village would possibly receive adjustments from McHenry County because of new property, Pfeiffer said.

"If you levied the same or reduced the levy, your revenue stream for real estate taxes will be less, which would mean you'll have less money to pay for goods and services," Mayor Tom Kierna said.

The tax levy itself is computed and based on the 6 percent of the prior years' tax extension, Pfeiffer said.

The village is a P-TELL (Property Tax Extension Law Limit) community, which is subject to the state caps on the real estate taxes. The state cap is limited to the consumer price index of the Dec 31, 2010 for the 2011 tax levy.

Pfeiffer said the overall increase of the tax levy would be a little less than two percent.

Kapaln said in the last 10 years, it has been a pattern of the village board to increase to the tax levy.

There has been an increase in the tax levy every year since 1989, Kierna said.

"Would you say, being a steward of taxpayers' money, that's a positive thing?" Kaplan asked.

"I think we've been very good stewards of taxpayers money," Kierna said.

"We are fiscally conservative in the village, I think when the economy soured on us in 2008, we began taking the necessary steps to reduce our expenses, which we did to the tune of nearly a $1 million."

"I don't see frankly much in that general fund budget that is extraordinary or fat. Its all stuff that is necessary, to live day-to-day and provide the services to the village residents," the Mayor said.

The tax levy decision has to be filed with the county by the last Tuesday of December, Kierna said.

After listening to the finance director report, Lukasik and Kraus said they didn't want to see an increase in taxes.

"I would personally like to see no increase," Lukasik said.

Kraus said he would like to see a flat line and maintain what the village has now if the village is able to capture new growth, without increasing taxes.

Village staff has been directed to present a new plan for the tax levy at the Dec. 20 Cary Village Board meeting.