FOX RIVER GROVE – The Village Board on Thursday passed its annual property tax levy.
Village officials approved levying for $876,757, an increase over last year's levy of $835,566. The village opted to levy the maximum allowed, which meant asking for the 1.7 percent rate of inflation and by taxing any new construction that took place in the year.
Under the tax cap law, non-home rule municipalities are limited to increase their levies by either 5 percent of the rate of inflation under the consumer price index, which ever is less.
The key reason why the village opted to increase its levy by the maximum amount allowed is it has increasing obligations to the state-mandated police pension, said Village Administrator Karl Warwick.
"It's a mandate we have to fund into future years," Warwick said.
Warwick estimated the owner of a $200,000 house will have to pay $8.30 more a year in property taxes to the village.
Final property tax rates however for next year won’t be set until property values are finalized in the spring.
Trustees Tom Anderson and Andrew Migdal voted against increasing the levy.
Last year, Fox River Grove opted not to increase levy by the rate of inflation and had a slight increase to capture any new property growth.