Politics & Government

Niles Strikes Down Proposed Property Tax Increase

Village staff had recommended a 4.9% increase in the village's portion of the property tax, saying it was needed to fund pensions, and village trustees debated the merits.


Early in Tuesday's Niles village board meeting, Mayor Andrew Przybylo brought up the topic of whether the village should raise the village's portion of property tax bills by 4.9 percent, as staff had recommended.

Staff members felt the increase was needed for the village to property fund police and fire employee pensions, he indicated. The village's portion of the tax bill represents a small percentage of the total bill; school districts usually levy about 70 percent of it.

"This is one of the most serious matters any body is faced with," Przybylo said, ticking off several arguments for and against such a move.

During discussion, Trustee Joe LoVerde said, "I’m committed to pensions, but I’m voting against the 4.9 percent annual increase.  If I voted yes tonight, it’s sending the wrong message to staff that I would continue to support tax increases."

Trustee John Jekot noted that $750,000 which was supposed to go to funding pensions was re-directed to flood relief, and that the board had a responsibility to not neglect pension funding.

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"We don’t have a crystal ball here," he said. "It’s unfortunate the budget process will be going on after the date we have to pass this levy." He indicated he felt the responsible thing to do was vote for it.

Trustee Rosemary Palicki said she was against raising taxes, but suggested that increasing homeowner's tax bills by $12 to $15 now was more responsible and palatable than doing what Highland Park did--deferring them so long that residents faced a more-unpalatable $85 hike.

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"I believe we need to cut costs; this board has not done that in the area of contracts. We need to to do that and discuss serious issues such as (the village's) 100% funding of workers comp (for all employees)," she said.

Trustee Danette Matyas said she had struggled with the issue too, but noted that taxpayers usually face rising taxes from schools, presenting a financial challenge to seniors and the unemployed.

The trustees voted 3-3, and Przybylo broke the tie by voting no. 

"There will be no tax increase this year; we’ll see about next year," he said. 


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