Information About the Libertyville Road Referendum

The Village of Libertyville continues to experience deteriorating road conditions throughout the Village.

While the Village currently spends approximately $1 million dollars per year on road repairs and reconstruction, the amount is not sufficient to keep up with deteriorating road conditions and maintaining the Village roadway system to an acceptable standard. The cost to repair a road ranges from approximately $650,000 per mile for a pavement overlay to approximately $1.85 million per mile for a full reconstruction. Significant cost savings can be achieved by making repairs to roads before they deteriorate to the point where full construction is required.

How has the Village funded road improvements in the past?

Current funding for the Village Road Program comes from two sources, which include motor Fuel Tax (MFT) and the Village Capital Improvement Fund. MFT funds represent a tax collected by the State of Illinois on the sale of gasoline (currently .19 cents per gallon) and a portion of the tax is distributed to municipalities based on population. The Village anticipates collecting $543,000 in the current fiscal year in MFT revenues. The Village Capital Improvement Fund is supported by revenues from the sale of vehicle stickers and a portion of the telecommunications infrastructure maintenance fee.

Aren’t my property taxes already used for roads?

Libertyville resident’s tax dollars support nine separate governmental agencies that serve our community.  The Village of Libertyville share of a homeowner’s real estate tax bill is approximately 7 percent of the total taxes paid. The Village utilizes its 7 percent share of your property tax bill ($499 property taxes collected on a $300,000 market value home) to fund a variety of Village services, including Police, Fire, Public Works (streets and sidewalk maintenance, storm water, street lighting, parks maintenance and forestry) , Community Development, Boards and Commissions, Administration, Legal Services, Community Organizations and Recreation. While property taxes are used for limited roadway and sidewalk maintenance, they are currently not used for road construction.

How many road miles does the Village maintain?

The Village of Libertyville owns and maintains approximately 89 center lane miles of roads, made up of a combination of concrete and asphalt surfaces. These roads require continual maintenance and repair and last an average of 15 to 20 years (depending upon weather, traffic volume, and type of traffic). The Village has identified approximately $32 million dollars in pavement work that needs to be done in the near future, however, approximately $20 million dollars has been identified for “repaving” rather than continued deterioration, which will require reconstruction of those roadways in the future.

How much would this road repair referendum cost me?

Due to various bond requirements with regard to issuance and when the bonds must be spent, it is anticipated that the Village will stagger the $20 million bond issue into four $5 million bond issues. Property tax rates would then be adjusted only as each bond is issued. The referendum would allow the Mayor and the Village Board to increase the property tax rate in order to fund the bonds issued for road repairs. For a home with a market value of $300,000, the Village anticipates that the referendum would add a maximum of $11.32 per month, or $135.93 per year, to residents’ property tax bill. While the referendum represents a significant increase in the property tax rate, the Village of Libertyville would still maintain one of the lowest property tax rates of area communities in Lake County.

What will happen if the referendum is not approved?

If the referendum is approved, the Village will issue bonds in an amount not to exceed $20 million over a four to five year period and perform the road repair work. If the referendum fails, the Village will continue with the current annual road program utilizing existing funding sources.

What will the referendum question look like?

The wording of the referendum question is based upon State Statute, and requires the Village to reference not to exceed interest rate of 9 percent. Due to various legal requirements with regard to issuance and spending of bonds, Village would stagger the $20 million dollars in total bonds over four $5 million dollar bond issues. Property taxes would only go up at an amount necessary to finance each of the staggered bond issues, and although the ballot questions requires reference to an interest rate not to exceed 9 percent, recent bond issues have been in the 4 percent to 5 percent interest rate range, and the Village Board would evaluate market interest rates at the time each bond is issued. The Village Board is not required to issue the bonds if the bond market and interest rate environment are not beneficial. The actual wording of the referendum question that will appear on the March 20, 2012 ballot will read as follows:

Shall bonds in the amount of $20 million be issued by the village of Libertyville, Lake County, Illinois, for the purpose of repairing and rehabilitating public roadways within the village, bearing interest at the rate of not to exceed 9 percent.

For further information, please contact the Village Administrator’s office at 847-362-2430

Related Articles:

• Guide to Libertyville's Road Referendum