In a 24-0 vote Tuesday night, the McHenry County Board voted not to take the inflationary increase allowed by the Property Tax Cap Law.
This past year, the Consumer Price Index increased 8/10 of one percent.
According to the Tax Cap law, all tax districts can get that much more than they are taking this year.
Wonder Lake County Board member John Hammerand made the motion to eliminate the inflationary increase.
The most important financial decision the County Board makes is how much money to extract from property taxpayers.
There is some irony that Hammerand, who served sixteen years on the Finance Committee, but was skipped over during the December reorganization, made the motion.
Below is the policy under which the budget will be crafted:
“The CPI increase authorized under PTELL shall not be utilized in the calculation of property tax revenues.”
Nick Provenzano seconded the motion.
Taken out of the policy was this alternative possibility:
“The County Board will work towards not taking the CPI increase authorized under PTELL when balancing the 2016 budget.”
The first vote was by voice and at least one voted against it.
When agreement was reached to have a record vote, not a “No” vote was cast.
The budget policy passed does allow for the capture of new growth, that is new construction.
This has been the case for the last two years in neither of which did county government take as much as it could have.
The only time the rate of inflation was lower since 1991, when the Real Estate Tax Cap went into effect, was 2008, when tax districts were allowed to take only an additional 1/10 of one percent.