Declining Property Values Taking Taxes Along for the Ride

An Elmhurst alderman tried again Monday night to remove almost $200,000 from the amount of money the city will ask taxpayers for in 2012-2013, but was again unsuccessful.

Still, a decline in local property values means many taxpayers will pay the same or slightly lower to fund city services next year.

The $9 million levy approved Monday reflects no increase in city taxes and allocates $198,000 specifically to refund any money to Elmhurst Memorial Hospital if its tax-exempt status is upheld.

Because of the hospital's recent expansion, its non-profit status is currently under review by the state officials. York Township taxing bodies were told to levy for the next tax year as if the hospital is taxed as a for-profit entity.

During the Dec. 5 council meeting, First Ward Alderman Diane Gutenkauf to $8.8 million, reasoning the city could find money in the future to refund the hospital's tax payment. Her amendment was rejected in a close vote, but Gutenkauf offered it again Monday.

“I proposed we leave this money in an account I call taxpayer pockets,” she said.

First Ward Alderman Paula Pezza supported Gutenkauf for the second time, saying she did not want to ask taxpayers to come up with money for a situation that was not yet settled.

“Let's levy now for exactly what we need,” she said. “I don't like basing anything on assumptions, or ifs, ands or buts.”

But Fifth Ward Alderman Scott Levin noted that most of the time, the council was working with assumptions and projections.

“When I was in graduate school, we called that 'budgeting,'” he countered.

And Seventh Ward Alderman Mark Mulliner explained that not levying for a potential tax refund to the hospital would in effect force the rest of the city's taxpayers to provide the money.

City Finance Director Marilyn Gaston confirmed that if the city's total assessed valuation declines, as is projected, the owner of a $370,000 home would actually pay about $1 less to the city per month than last year.

The city also received some positive financial news in the form of a $2.5 million reimbursement from Metra for the Larch Avenue parking deck in return for leasing 125 parking spaces to the transportation agency. City officials before learning this summer the agency would finally cut the check.

“Merry Christmas, Elmhurst,” said Mayor Pete DiCianni.