Palatine's proposed budget would bolster pension fund
Palatine's tentative $123 million budget for next year would dedicate extra money toward boosting public safety pensions through a combination of property tax revenue, savings from debt refinancing and other means.
Village Manager Reid Ottesen said the 2020 tentative budget should result in good news for property owners. The new budget year will begin Jan. 1.
"While the total (property tax) levy will be going up 1%, the net effect for the residents should be a slight reduction as all the new money will be coming out of the recently retired (tax increment financing) district," Ottesen said.
At least $398,400 in new revenue is projected for the village from the retirement of the Dundee Road TIF district, which would be directed into the police and fire pension funds.
TIF districts freeze the amount of property taxes local governments receive at the level of its first year. As property values increase, additional taxes go to a fund to pay for public improvements over 23 years or when all public improvements are paid for, whichever comes first.
About $1.15 million saved through debt refinancing, $180,000 in surplus funds from 2017 and an extra $227,673 projected from property taxes next year also would be used to bolster the public safety pension funds, according to the tentative budget.
The village's police pension funding level most recently was listed at 62.6% in 2017, with fire at 59.9%.
Village council members held a public hearing on the proposed $123 million budget Monday evening. Formal adoption of the budget, which is up about 2% from this year, is expected Dec. 2.
Sakes tax revenue is expected to rise $816,000, or 6.5%, in 2020. Much of that increase is to come from the opening of Napleton's Automotive Group dealerships for Mazda and Subaru on Rand Road.
About $100,000 more in revenue is forecast from increased vehicle sticker sales through an enhanced enforcement plan and letters sent to scofflaws.
Hotel-motel receipts are expected to take a hit due to this year's closure of the 183-room Holiday Inn Express near Route 53 and Dundee Road. The village budget states the Holiday Inn accounted for about two-thirds of annual hotel-motel tax revenue, which is projected to drop from $171,400 to $65,000 next year.
Schools accounted for 68% of property taxes Palatine residents paid this year, followed by village government's share at 12%. The Palatine Park District was next with about 6% of the property taxes.