Hampshire board approves property tax levy for 2012
By Denise Moran For The Courier-News November 16, 2012 8:54AM
Updated: December 19, 2012 1:15PM
HAMPSHIRE — The village board unanimously approved the 2012 tax levy ordinance in the amount of $837,888. The request for property tax dollars is up about 15 percent from last year, but it’s unlikely the village will get that much when the money actually comes in.
Village Administrator Doug Maxeiner told the board Thursday night that the 2012 tax levy is a “balloon levy.”
“Each year, corporate authorities for the village are required to estimate the revenues required to operate the various functions of the village,” said Maxeiner. “Included in the revenues are those amounts funded through the property tax. The village board must estimate the amounts required for the property tax levy so that the funds generated through this revenue instrument will become available during the 2013-14 fiscal year.
The tax levy ordinance must be approved by the village board and submitted to the county by the last Tuesday in December.”
Maxeiner said the levy request is $836,813, an increase of 15 percent over the prior year’s extension of $727,363.24.
Most local governments request more money in property tax levies than they realistically expect to receive in order to take advantage of any unforeseen development in the next year. Property taxes from one year are collected and distributed the following year.
“The actual levy extension will likely be considerably less after the county clerk has applied the property tax extension limitation,” Maxeiner said. “In March of 2013, the county clerk will provide the limiting tax extension and, if the village’s request has exceeded the tax extension limitation, the levy amount will be reduced accordingly. If, on the other hand, our estimate of the levy extension is underestimated and we do not meet the limitation figure, the village will not have the ability to levy more to make up the difference. It is critical that the original request is considerably higher than the actual anticipated levy in order to capture all new growth in the community.”
Maxeiner said that the tax levy increase was less than 2 percent last year. The tax levy hike for this year is expected to end up at 2.5 to 3 percent.
Impact fees to FPD
In addition to approving the 2012 tax levy, the board approved releasing new construction impact fees of $28,495.65 to the Hampshire Fire Protection District, which will use the money to purchase a generator.
Hampshire Fire Chief Bill Robinson described the generator that the district will purchase as “a new 60 kW generator complete with automatic transfer switch.
“The unit will run on natural gas and also be able to adapt to liquid propane in the event our natural gas supply is interrupted. With the recent events involving weather conditions and other events, this would allow our Emergency Operations Center to continue operations as we have in the past. Our center has been activated in the past and used by both the fire service and the village to coordinate efforts.”