Winnetka Residents to Face Higher Property Taxes

Winnetka residents are going to be digging deeper into their pockets if the village’s proposed budget is approved, as infrastructure repairs will be addressed this year.

For residents who pay roughly $20,000 in annual property taxes, which is in the lower range of the Winnetka citizenry, taxes will go up approximately $120 dollars. The increased costs will be split among a higher property tax but also in increased water and sanitary sewer charges.

Village officials believe the increased income is necessary to pay for improvements in the sewer system as well as upgrades of both the water and electrical systems.

“None of us likes to pay more taxes,” said Village President Jessica Tucker. “The village represents 13 percent of the entire property tax bill. In this day and age we have to meet pension costs and we have to meet that obligation. We do the best we can to keep it as low as we can.”

In comparison, Winnetka public schools take up 40 percent of the property taxes and New Trier High School received nearly a quarter of every property tax dollar. Other government agencies take the rest.

The roughly $64 million budget will use about $4 million in existing cash funds to pay for major capital improvements. The rest of the money comes from the normal budget cycle.

“Historically we have lived within the property tax cap even though we are home rule,” said Village Manager Rob Bahan. “We are trying live at or below the rate of inflation.”

While there have been recent indications of positive economic activity, such signs may not mean as much for Winnetka as other communities.

“We’re seeing an uptick but we are pretty reliant on property taxes so when many towns saw a reduction in revenues, we did not see as significant as a decline,” said Winnetka Finance Director Ed McKee. “Even though things are turning around we are not seeing as significant of an increase either.”

As for the particulars in this budget, McKee noted the village plans to spend more than $2 million on stormsewer systems and repairs.

Specifically, upgrading a pump at the Winnetka Avenue station will cost $750,000. The village will also spend $100,000 on a study to evaluate the system as a whole. This will be the first time in years that such an evaluation has taken place.

“That is why we need the rate increase,” McKee said.

What residents will likely notice more in the specifics of this budget is the completion of a two-year project of renovating the village hall. The village will spend $1.6 million on renovations in this budget year, just as it did in the previous budget.

Also, new reconfigured traffic circles will be put in at the intersection of Green Bay Road and Winnetka Avenue. Half a million dollars will be dedicated from the motor fuel tax fund to pay for that improvement.

Amid reports of complaints about Winnetka’s downtown sidewalks, Tucker noted that is a concern and said that methods of improvement will be discussed later in the year.  “We have to address pedestrian safety anywhere in our community,” she said. “Secondarily, how can you do that to improve the appearance?”

One other area of trepidation is the pension rate for municipal employees. The funding ratio, which had been as high as 87 percent in 2003, fell to 63 percent in 2009 following the economic crash and has only inched up to 66 percent in this budget.

“When public pensions funds drop below 70 percent funded ratio, it is a cause of concern, especially if it is a result of a continuing downward trend, because it is unlikely investment returns will be sufficient to bring the fund back to a more stable funding level,” said Laurence Msall, the President of the Civic Federation, a non-partisan government research organization. “Pausing at a 66 percent funded ratio means the funds have only two thirds of the assets to fund their current obligation.”

McKee concedes there is work to be done with the pension rate.

“It is something that we look at regularly,” he said. “There are limited things we can do locally to impact that. The benefits are set by the state legislature. It is an issue that will be solved over many years.”

Village residents will have an opportunity to discuss the budget as a whole at two public sessions on March 8 and 20.

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