Burr Ridge has taken the first step toward putting an infrastructure referendum on the November ballot.
Village Board members on Monday unanimously approved directing staff to create a question for them to consider before saying deciding whether to hold the referendum during the General Election.
A fall referendum would seek voter approval for an infrastructure tax levy, which would replace the debt service levy that will disappear after bonds issued to bring Lake Michigan water to the village expire at the end of this year. The infrastructure levy would generate about $520,000 annually — identical to the debt service levy.
Without the referendum, the owner of a $600,000 home in the Cook County portion of Burr Ridge would see about a $130 reduction in village taxes when the Lake Michigan bonds expire. The owner of that same home in the DuPage County portion of the village would see about a $100 drop in municipal taxes.
Village administrator Steve Stricker said by establishing the infrastructure levy, the village would get needed money for its road program and voters would not be paying a higher tax rate to the municipality than they do right now.
The infrastructure levy would primarily be used for road maintenance, but could be tapped for sidewalks, storm sewers and other infrastructure needs.
“We will have to figure where we can have the biggest bang for the buck for residents,” Trustee Guy Franzese said.
With the village turning 60 this year, it needs to have money on hand to revamp its infrastructure, officials said.
“Our streets are aging,” said Trustee Al Paveza.
Referendums asking for money are historically tough to pass in general elections because of higher voter turnout. However, village officials noted, by waiting until Spring 2017, the referendum would be more of a tax hike because the debt service levy would have expired.
Sticker said that even with the referendum’s passage and the $250,000 the village annually gets in motor fuel tax funds from the state, the village will still have to pare back on its capital projects. The village has been spending about $1 million per year to keep its roads in top condition, Stricker said, and the referendum and MFT money would only generate about a combined $750,000.
“That three-quarters of a million dollars is still less than we were spending seven to 10 years ago,” Stricker said.
He said revenue that has been used for the village’s road program is drying up.
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“One-time revenues that have been used over the past few years for this purpose have now been expended,” Stricker said. “Developer donations for sidewalks and annexation fees for capital projects can no longer be relied upon as an ongoing source of revenue. In addition and most importantly, other than possible end-of-year surpluses, the general fund will no longer be able to support funding for needed infrastructure-related capital improvements “
After the 2016-17 fiscal year, village budget estimates for the following four years show annual deficits of between $337,000 and $654,000, primarily because of road program expenses.
Stricker noted that the projected deficits do not even take into account the threat of the village losing some of its portion of Illinois income tax money. The Local Government Distributive Fund provides more than 12 percent of the village’s operating revenue.
Getting the word out to residents would be vital for any referendum effort, according to village officials.
“I hope residents understand what we are trying to do for them,” Stricker said.
It is unclear whether future improvements to the village’s water system would also be covered by the infrastructure levy. Paveza, a member of the village’s Water Committee, said the panel is looking into if water bill increases should be the funding mechanism for water system improvements.
Trustee Paula Murphy said it would be nice to provide residents with a tax break by letting the tax levy for the Lake Michigan water bonds expire, but added she understands the village needs to find the money to continue its road maintenance efforts.
Kevin Beese is a freelance reporter for Pioneer Press.