I see any tax increase on residents, no matter how small, as a last-ditch effort at budgeting. However, I also want to ensure the people of our community continue to enjoy the level of service they expect as residents of Bartlett, IL. At our October 17, 2023 committee of the whole meeting, we reviewed the proposed levy and at our November 7, 2023 meeting we approved this levy. This will raise taxes an average of $45 per year on a $400,000 home.
Why is There a Tax Increase?
The main reason for the increase is to keep up with funding police pensions. Like all municipalities, Bartlett is required by the state to fund the police pension at 90% by 2040. Bartlett is actually set to fund the pension at 100% by 2040, but one reason to keep the funded ratio above average is that bond rating agencies have been putting more attention on pension liabilities.
The 2023-2024 calculated contribution to the police pension is $3,001,235, which is $797,614 more than last year. In 2021, the contribution was $2,203,621 and the village used $319,175 from the general fund to keep the pension levy the same. The village will take $319,175 from the general fund again this year, but a $400,000 house will see an average increase of $45 per year on their taxes.
Why Shouldn’t We Take More Money from Reserves?
General fund reserves are in place to use for storm water and capital projects that don’t have a dedicated funding source, so if we used all of the general fund reserves, we would not be able to complete other projects or surprise projects (like removing trees killed by Ash Borers). If we “kick the can down the road”, capital projects may suffer or surprise projects could end up costing the village more if we need to borrow money. For instance, a culvert recently collapsed on Munger Road and will cost $500,000, which will come from the general fund.
What About All the Construction Projects in Bartlett?
New sales tax is not budgeted until a year after businesses start to generate sales tax so we know what the number looks like. Also, places like Aldi have a 50% sales tax rebate for the next three years as these are the types of incentives that ensure businesses like this choose Bartlett. The rebate for the car dealership will go to pay back the Lake St./59 TIF for property purchase when it was first established.
When Do We See a Return on These Investments?
Like all residents, I question “When do we see a return on all the investments we’ve made in Bartlett?”. In terms of financial return on investment, projects like the Grasslands subdivision may take a few years to realize the return. In Cook County, the village’s portion for a $450,000 is around $1,000. With 346 housing units, that could mean between $350,000 to $500,000, but we may not see that money until 2025 or 2026.
My Thoughts
Residents expect a high level of service from Bartlett, but they also expect to feel that value for the taxes they pay. Voting “Yes” on a levy that raises taxes, even though small, is not something I take lightly. Our board approved a budget in Spring of 2023 that supports the growth of Bartlett based on what residents want in their village. Had the board voted “No”, we would need to go back to the approved budget and cut items we deemed necessary to support the expected lifestyle in Bartlett. Looking ahead to the 2024 budgeting process, and knowing that we may not see the return on the investments made in our village for a few years, I am focused on not having a tax raise next year. In order to do this, our Village and Board needs to determine which projects can happen now and which will have to be a future plan, as well as what can be reduced. If you have any questions on the budget or the levy, please reach out to me.