SPRING GROVE – Spring Grove residents will see an extra $2 to $3 on average going to the village on their next annual tax bill.
The Spring Grove Village Board approved a 2.1 percent increase on its levy at its meeting Tuesday evening, bringing the total amount of property taxes it brings in up to about $653,000.
Of that approximately $13,400 increase, about $3,000 of it will come from new growth and the remaining from a 1.7 percent increase allowed under the inflation-tied tax cap.
All of the increase will go to the police pension fund, Village President Mark Eisenberg said.
Last year, the village of Spring Grove had to contribute an additional $120,000 to its police pension fund, and this year, the amount it needs to contribute – as determined by independent actuaries – climbed another $14,000, he said.
“It’s already becoming an issue,” said Eisenberg, adding the changes that caused the increases particularly affect small communities like Spring Grove.
“The thing is a lot of these communities that aren’t raising their levies have other revenues coming in,” Eisenberg said. “They have car dealerships. We have limited sales tax.”
With the police pension fund chipping away at general fund dollars, it’s making financing other village operations more difficult, especially with 78 miles of roads to maintain and rising health care costs.
“When things were really good, we saved,” Eisenberg said. “We had good reserves, but we’re eating at them.”