Serwatka Proposes 10% Property Tax Cut in Lakewood

A press release from Lakewood Village President Paul Serwatka:

Lakewood Proposes 10% Cut in Property Tax Levy

Village Board to Vote This Tuesday, December 12th at 7:00pm.

This Tuesday, December 12th 2017, at Turnberry Country Club Meeting Room, staff and I will propose, and the board will be voting on, Lakewood’s property tax levy for the year 2017 (payable in 2018) which reflects a 10% reduction in the amount of property taxes collected in the previous year.

The levy as proposed is a clean, straight forward, legitimate 10% cut/reduction in the amount of property taxes to be levied by our village and paid by Lakewood residents!

NO abatements, NO “shell-games”, NO “smoke and mirrors”.  [County government abated taxes.  Abated taxes may be re-imposed in the future. The Algonquin Township Road Distrit levy was cut 5%, not abated.]

The entire 10% property tax levy reduction being proposed has been achieved through

  • the restructuring of our village administration
  • eliminating redundancies and creating efficiencies, including the consolidation of the previous positions of Village Manager and Finance Director into the singular “Chief Administrative Officer position, as well as
  • the elimination of the position of Deputy Manager.

Also noteworthy, this 10% reduction in our property tax levy is being proposed with NO SERVICES BEING CUT OR REDUCED – in fact, we have actually increased our police officers, police supervisory roles and police officer training and now have a greater police presence in our village with better trained officers.

You can learn more about the re-structuring of our police dept and the transformation of our village administration, by simply clicking HERE.

The Reduced Levy Being Proposed

Illinois State Statute requires all taxing bodies to request specific property tax amounts and not set tax rates.

This legislation is based on the state’s belief that local governments should only ask for what is needed to finance their operations and should not gain unnecessarily from significant increases in property values.

Specific to the levy being proposed, staff has determined that a levy amount of $1,586,509 representing a 10% decrease in the prior year levy amount of $1,762,788 is sufficient to cover expenditures for the next fiscal year.

The justification for reducing the levy by 10%, or $176,278 savings is as follows:

  • Consolidation of Village Manager and Finance Director position ($76, 100);
  • Reduction of Police Chief salary ($24,405 – adjusted for COLA);
  • IMRF savings for these positions ($10,654);
  • Fire Equipment Loan paid in full ($41,000) and
  • Part Time Building Inspector position contracted out ($25,720)

totaling a cost savings to the Village of $177,879.

The Village is committed to a balanced budget for the upcoming fiscal year, excluding planned capital improvement projects, while maintaining a healthy General Fund reserve.

The 2017 Audit of the General Fund revealed a fiscal year fund balance increase of $213,516 over expenditures and a total fund balance reserve of $1,378,455 representing 52% of annual expenditures.

Our Auditor typically recommends a fund balance between 30%-50%.

Therefore, a levy decrease for this year is justified.

All Lakewood residents are encouraged to attend this meeting on Tuesday, December 12th at 7:00pm.

Come show your support for this property tax cut and encourage village board members to vote YES!

The meeting will be held at Turnberry Country Club Meeting Room located at 9600 Turnberry Trail in Lakewood.

PLEASE SHARE this with Lakewood neighbors – and Please Make an Effort to come and voice your support!

I really hope to see you there!

I will also be following up with an important newsletter, tomorrow, regarding two important items from this Tuesday’s meeting, that you should really be aware of. Please look for this follow-up newsletter.


Comments

Serwatka Proposes 10% Property Tax Cut in Lakewood — 8 Comments

  1. This statement (printed above) bears repeating:

    “Illinois State Statute requires all taxing bodies to request specific property tax amounts and not set tax rates.

    This legislation is based on the state’s belief that local governments should only ask for what is needed to finance their operations and should not gain unnecessarily from significant increases in property values.”

    Serwatka has set a standard here which other taxing bodies should seek to emulate.

  2. Eating the elephant one bite at a time.

    The more municipalities and taxing bodies that get on board with this philosophy of respecting and empathizing with the overburdened taxpayers they represent, the more pressure that is placed on the others.

  3. Gotta give this new group credit.

    They’re doing exactly what they said they would do.

    Very refreshing.

  4. This a REAL property tax cut, achieved by cutting expenses.

    Congrats to the whole board.

  5. The fiscal year 2017 (FY 2017) Audited Annual Financial Report (AFR) is not posted on the village website.

    http://www.village.lakewood.il.us/index.asp?SEC=A1424B96-FB80-4AB0-AD2F-3B411927BD7A&Type=B_BASIC

    FY 2017 ended April 30, 2017.

    FY 2016 AFR was dated October 3, 2016.

    FY 2015 AFR was dated August 21, 2015.

    FY 2014 AFR was dated August 7, 2014.

    FY 2013 AFR was dated August 7, 2013.

    FY 2012 AFR was dated October 11, 2012.

    FY 2011 AFR was dated September 8, 2011.

    FY 2010 AFR was dated July 27, 2010.

    FY 2009 AFR was dated July 22, 2009.

    FY 2008 AFR was dated September 3, 2008.

    FY 2007 AFR was dated August 17, 2007.

    +++++++++

    Per the Village of Lakewood Lakewood FY 2016 audited AFR:

    The IMRF unfunded liability (net pension liability) for the village is $825,342 and is 85% funded (15% unfunded), per pdf page 36 (hard copy page 32).

    The Village’s unfunded liability increased from $570,901 in the FY 2015 to $825,342 in FY 2016, per pdf page 41 (hard copy page 36).

    As of April 30, 2016 the Village had total debt outstanding of $8,464,884, per pdf page 11 (hard copy page 8).

    That consisted of:

    Refunding Bonds – $6,058,718

    General Obligation Bonds – $80,609

    Alternative Revenue Source Bonds – $1,823,193

    Loans Payable – $439,485

    Lease / Purchase Agreements – $62,879.

    ++++++

    Police in the Village of Lakewood participate in the IMRF pension fund.

    ++++++

    Fire protection in the Village of Lakewood is provided by the Crystal Lake Fire Rescue Department, which is part of the City of Crystal Lake.

    village.lakewood.il.us/index.asp?SEC=B6D8AB26-8B36-47E1-A763-05B2B8845368&Type=B_BASIC

  6. “Straight forward, legitimate 10% cut/reduction in the amount of property taxes to be levied by our village and paid by Lakewood residents!

    NO abatements, NO “shell-games”, NO “smoke and mirrors”. [County government abated taxes. Abated taxes may be re-imposed in the future.

    The Algonquin Township Road Distrit levy was cut 5%, not abated.]”

    Respect this and the Algonquin Township 5% levy cut by Gasser.

    Do it, Lakewood!

  7. Bending the cost curve with an emphasis on necessary government expenditures is what the taxpayers expect from elected government leadership.

    When it happens, this leadership should be recognized for a job well done.

    Congratulations Paul for your effort to your taxpayers in this regard.

    LITH and Crystal Lake should be taking note.

Leave a Reply

Your email address will not be published. Required fields are marked *