Proposal would have asked voters about swapping rebate for reduced water rate
New Lenox village trustees rejected a proposal Monday that would have skipped an annual property tax rebate to homeowners in favor of lowering water bills for residents.
Mayor Tim Baldermann said he annual hears the same request from homeowners when it’s time to fill out forms for property tax rebates.
“People are always saying ‘forget my tax rebate, put it toward my water bill, I’m sick of my high water bill,’ ” Baldermann told village trustees. “I hear it all the time.”
Baldermann asked if the village should hold an advisory referendum on the issue, but the Village Board ultimately decided the property tax rebate was more beneficial to residents than a water rate reduction.
Over the next five years, residents will see water rates increase by $3.20 per 1,000 gallons of water, Baldermann said. The increase will pay for three main projects including replacement of water lines under Cedar Road and Route 30, the closure of two sewage treatment plants and construction of one larger one. and construction of a water line to serve New Lenox and 12 other communities that use water from Lake Michigan.
For the average user, those projects likely would equate to about a $20 a month water bill increase at the end of the five years, Baldermann said. In comparison, the owner of a $300,000 home pays about $350 a year in property taxes to the village, Baldermann said.
For the past 11 years, the village has returned to homeowners a portion of the property taxes paid. This year, trustees were set to approve an 85% rebate, but
The rebate does not apply to commercial property, so the village keeps those tax dollars.
Trustees said that if the trend holds, residents would be better off receiving a property tax rebate than a break on their water bills. They noted the rebate benefits only homeowners, not businesses. If the rebate money were instead applied to water rates, it would be spread among all property owners, including businesses.
“It’s not in the best interest of the community right now,” Trustee Annette Bowden.
Because the question comes up on a regular basis, Baldermann suggested the village put together an informational video to explain the property tax rebate program and its benefits to residents.
The water lines at Cedar and Route 30 have already been installed, but the village is paying off debt from the project. The Lake Michigan water line is a $275 million project shared by 13 communities and the new sewage treatment plant has yet to be built. That project is expected to cost the village $100 million.
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