Orland Park officials have approved a tax levy for next year that is about $260,000 below this year’s levy and pledged to apply other village funds to offer property tax relief.

Trustees also approved a budget for next year that calls for reduced spending, agreed to waive liquor license fees next year for village restaurants and approved higher water rates that will take effect Jan. 1.

Orland Park’s portion of the property tax levy has, for several years, been $13.4 million, and for next year would be a bit more than $13 million. The Village Board also approved the public library’s levy of $6.5 million.

The village also intends to use money left over from business incentive programs this year to offer property tax relief.

Overall, property owners could see a reduction on tax bills in a range of $18 to $24, village manager George Koczwara said Monday.

Board members voted 4-3 in an early August resolution to commit the village to reducing the 2021 levy but did not set a target number.

The village expects about $360,000 from the business incentive programs to be available for tax relief. The Shop Orland Park program this summer offered Visa gift cards to customers who patronized village businesses, and a Dine Orland Park, which continues through the end of this month, offers gift cards to customers of village restaurants.

Officials had considered options for additional business incentives, such as a reduction in liquor license fees. Waiving the fees is projected to cost the village about $175,000 in revenue.

The 2021 budget anticipates sales tax revenue to be down about 7% compared with the this year, primarily due to the lingering effects of the pandemic.

Spending in the General Fund, which accounts for most village operations including public safety, is expected to be $53.7 million in 2021 compared with $56.7 million this year. Fund revenues are projected to be $51.5 million compared with $55.5 million this year.

The village expects to start the year with fund balances of $15.7 million.

Village spending next year is expected to be $179.2 million compared with $188.4 million this year. Overall revenues, including from sources such as property and sales taxes, are projected to be $151.2 million next year compared with $160 million this year.

The village expects to see revenue in its water and sewer fund increase to $42.5 million in the coming budget year compared with $38 million this year, due in part to the water rate increases.

Orland Park has a three-tiered billing system that rewards customers who use less water.

For homes and businesses that use up to 7,000 gallons of water per month, the rate is increasing to $7.24 per 1,000 gallons from the current $6.96.

For customers using 7,000 gallons or more, up to 12,000 gallons, the rate is rising to $9.05 per 1,000 gallons from the current $8.70.

For monthly use of 12,000 gallons up to 22,000 gallons, the rate is increasing to $10.87 per 1,000 gallons from the current $10.45.

The village also charges separate rates for storm and sanitary sewer upkeep.

The sewer rate will rise to $1.28 per 1,000 gallons of water used from $1.23, and the storm sewer rate will increase to $2.12 per 1,000 gallons from $2.04.

All of the rates apply to those water and sewer customers in incorporated areas.

The village is conducting a study of its water system and rate structure that is expected to be completed next year.

As the village’s water and sewer systems age, the study will, among other things, assess whether rates are adequate to pay for the upkeep of the systems.

mnolan@tribpub.com