No La Grange Tax Hike Needed For Streets: Official

LA GRANGE, IL – La Grange's tax income is increasing, so the village no longer needs a property tax hike to pay for street improvements, an official said this week.

With the recession in 2008, La Grange fell out of the habit of transferring $1 million a year from its main account to its fund designated for infrastructure projects, Village President Mark Kuchler told the Village Board.

Last year, La Grange resumed the $1 million transfers. This year, Kuchler said, that number is set to go up by another $1.5 million, for a total of $2.5 million.

The original plan was to take out a bond in 2026 and pay it back through a property tax increase, he said.

"If we can continue on this course, we will be able to go to bonding without a property tax increase," Kuchler said. "I think that's really exciting."

Rick Colby, the village's public works director, said that even with the added money, the village's needs for street improvements outstrip its resources. The village's street survey indicates the village needs $3 to $4 million a year for projects, he said.

Still, Colby said, the new income is a big help. He said the village has an "aggressive but executable" plan to upgrade streets.

The village's finance director, Lou Cipparrone, said the village's tax income has grown a lot in the last couple of years.

That is mainly because of the way the state now assesses sales taxes for online purchases, Cipparrone said.

Another reason is that the village's population increased by 770 people in the 2020 Census, he said. That means bigger distributions of money from the state government.

Also, with higher interest rates, the state is earning more on its investments, Cipparrone said.