Huntley officials to consider property tax increase
With home values rising, Huntley residents can expect to see an increase in how much they pay the village in property taxes under a plan that village officials will be considering next month.
At Thursday's village board meeting, officials decided to move forward with a plan that increases the village's tax levy at the same rate the village's overall taxable property value is expected to grow.
The plan allows the village to capture new construction, such as an addition to a home or new subdivision, as well as money from properties that increased in value.
Huntley is a home rule community, which means it is not held to the same limits under state law on their property tax levies other taxing bodies are.
The village's plan would keep the overall tax rate flat for Huntley property owners but would capture property taxes based on the change in the estimated taxable property value in the village, which is projected to be 3.82% across McHenry and Kane counties, according to village documents.
This means for a home that doesn't change in value, the portion of the tax bill headed to the village wouldn't change either. But most properties are expected to increase in value, Director of Finance Cathy Haley said.
On a home valued at $275,000 last year, this increase in value would amount to a $12 increase on property taxes paid next year, according to the village.
"I think we need to bring in us much as we can," trustee Ronda Goldman said Thursday. "I don't think $12 annually is going to kill people."
Huntley Mayor Tim Hoeft and some other trustees said it was the best plan to make sure the village was able to continue meeting the demands of residents as the village adds new residents and businesses.
The proposed levy would total $4.9 million if approved, an increase of $183,651 from last year, according to village documents.
The village board was also given two other options to consider that would have resulted in smaller levy increases with little effect on owners of existing property. If the village took only new property taxes from new construction, the tax levy would increase by $64,409, but only on new property. If the village increased only the police pension levy, owners of existing property would again see no increase because it would be covered by new construction in the village, according to village documents.
The increased levy will help fund new staffing in the fiscal year 2022 budget, according to the village, which is projected to cost the village $250,000 in wages alone.
The village's property tax levy and fiscal year 2022 budget will go before the village board for final approval at the Dec. 9 meeting, which is scheduled for 7 p.m. at the Huntley Village Hall.