Village Plans Major Financial, Facility Changes

The Village Board has a vision for the future of New Lenox, and on Thursday night members met in closed session to talk about a handful of financial and developmental changes that could help realize that plan.

This was strictly a planning meeting and no action was taken, but it laid the groundwork for future development, including a new police station and public works facility, extending Nelson Road from Haven Avenue to Illinois Highway and repairing all sidestreets.

Overall, the village will bring in about $2.9 million annually in additional revenue through a 1/2-cent home-rule sales tax increase and a 5 percent utiity rate adjustment. In turn, the village will have a $1.7 million annual bond payment for 20 years to fund these projects, as well as $1.1 million annually for the road repairs. The village's general fund will cover the difference.

Part of the plan includes cutting village car stickers and pet tags that residents must currently purchase, saving the average resident about $40 and slashing $200,000 of revenue for the village.

For many residents, this will sound like they're paying more money to the village every year. In part, that's true: The average resident will pay $110 more in utilities and $30 more in sales tax.

But Mayor Tim Baldermann justified those additional costs, becase they’ll be more than offset by other savings programs run by the village. That includes the estimated $40 savings from car and pet tags, $174 in savings for lower electric bills through the and continued property tax rebates.

To better understand the breakdown of all these proposals, read below.

Overview

• $2.9 million annually in new revenue from increases to utility rate adjustment and home-rule sales tax
• $200,000 reduced from revenue by cutting vehicle stickers and pet tags
• $1.7 million annual bond payment for 20 years. Able to pay same amount every year without back-loading debt.
• $1.1 million annual cost of repairing 1/20 roads in New Lenox (about 6 miles each year, compared to 1.6 miles annually now).
• $100,000 of cost of projects remaining, which will be paid out of general fund

Revenue Changes 

Eliminate fees for pet tags and car stickers

• Starting in 2012. If you sell a car now or buy a new one before 2012, you’ll still need to get a car sticker.
• Saves average resident about $40 per year.
• Village loses about $200,000 per year.

Utility tax increase

• 5 percent increase on gas and electric taxes.
• Costs average resident $40 on gas and $70 on electric per year (or $3 and $6 per month).
• $1.25 million additional revenue for village.
• Baldermann noted that the utility increase is also footed by larger companies, such as Walmart, and the new Silver Cross Hospital.

Home-rule tax

• 1/2-cent increase to home-rule salex tax.
• Costs average resident about $30 extra per year.
• $1.65 million additional revenue for village.
• Baldermann noted that the sales tax isn't only paid by residents, but everyone who shops in the village.

"So the people of New Lenox save money and get all the benefits of these projects because it’s funded by commercial and outside interests," Baldermann said.

Expenditure Changes

Nelson Road extension

• $4 million total cost
• Voss Properties owns the undeveloped land in between Haven and Illinois Highway, where the road extension would run through. It plans to build homes on the land, but the project is at a standstill.
• The village will purchase the land and pay to extend Nelson Road from Haven Avenue south to Illinois Highway.

New police, public works facilities

• $10.5 million cost for the new police station.
• $7.5 million cost for the new public works facility.
• There are many space and efficiency issues at both facilities, and village officials believe they need new buildings that can meet current needs and accommodate future growth.

Sidestreet repairs

• $1.8 million annual cost paid by $1.1 million from the new revenue sources and $700,000 from the annual Motor Fuel Tax fund.
• The village will repair 1/20 of its roads each year, or about 6 miles of road per year. Right now, the village only repairs about 1.6 miles each year. The thinking behind this is that roads should last about 20 years, so once all have been repaired it will be time to go back over the first repaired. 
• These road projects will start in 2013.

Land purchase

• Estimated cost is $1.5 million to $2 million. 
• The village is reviewing numerous parcels of land on which to build the new police station and public works facility. He wouldn’t say which areas the village is considering because contracts would still need to be finalized. 
• Baldermann thinks a realistic timeline from start to finish, after acquiring land, would be up to two years.

"We’ve got to have locations for some of the buildings, and we want to secure that they fit into our plan for a downtown area for New Lenox," Baldermann said. "Eventually what will happen is we’ll have a design to show the community."

What Comes Next?

The Village Board's next meeting is at 7 p.m. Monday, Sept. 12, in . Board members will announce these plans and discuss them further, and there wil be opportunity for public comments.

Baldermann said he will also film a program for Channel 6 to publicize and explain the proposals, and he hopes to hold a town hall meeting. The board will likely vote on these decisions at its Sept. 26 meeting.

That will give residents a chance to learn about the proposals and voice any concerns, but after a few hours of questions Thursday night, Baldermann said the board members came to a consensus and were all excited about the plans.

"We have to spearate ourselves from the others," Baldermann said. "With the hospital and outlet mall coming, we want to be a destination location. We want people to come here for shopping and restaurants and amenities . A mayor and a board can just maintain the status quo and do OK, or you can have a vision and be bold about it to move forward."