Tax Cap Considered in Home Rule Decision, With Exceptions

As River Forest residents consider whether or not to approve a ballot question that would make the village a home rule community, the village board is considering a proposal that would keep property tax limits in place.

As it stands, non home-rule communities can raise property taxes to five percent or the one-year increase in the consumer price index, whichever is less. River Forest officials have said they plan to adhere to those guidelines if voters approve the home rule ballot question on Nov. 6.

Earlier:

But the board is also giving itself an out.

Included in a draft ordinance outlining the board's position on home rule authority are a series of exceptions allowing the village board to raise property tax rates. Here are the exceptions:

• During in a "bona fide" emergency,
• To help pay for unfunded mandate from the federal government, state of Illinois or Cook County
• Reductions in revenue shared from the state, such as the motor fuel, income and property replacement taxes

Approval of exceeding the cap in these circumstances would require "yes" votes from a supermajority of the board, five of the seven village board members.

Village Administrator Eric Palm said the exceptions will serve as a safeguard against unexpected legislative action in Springfield that could dramatically cut down on money shared with municipalities across the state.

"Years ago, income, motor fuel and property replacement taxes were all a given from the state. Now every year the state threatens to take that money back. Those are some key dollars.

"If state comes wipes that out, then we’ve got a problem. We want some flexibility in case the state threatens or actually takes revenues away. It has to come from somewhere."

Putting an ordinance into law is a move designed to build trust with voters who may see home rule status a green light for unilateral decision-making, something village president John Rigas and other village officials have dismissed as unfounded.

The board is expected to vote on the measure at its Sept. 10 board meeting.

Meanwhile, village officials are creating educational materials for residents about the home rule ballot question, including a frequently asked questions section. A draft version is attached as a PDF.