Town Hall Meeting Addresses Referendum Concerns

A special town hall meeting Monday night drew a large crowd of residents hoping to find answers or voice concerns over Libertyville's road and electric aggregation referendums, two issues that will appear on the March 20 local ballot.

Residents were vocal about the road referendum, which if passed would allow the village to issue $20 million in bonds for rehabilitation of deteriorating village streets. The roadwork would be completed over a five-year period, beginning in 2013, and the bonds would be funded by increased property taxes.

Residents' Response to Road Referendum

Some residents did not feel the tax increase was necessary and that the village could find other ways to fund the work. Others were more concerned about the quality of the work already performed on village roads. Resident Barbara Ferguson took issue after reviewing the list of roads to be repaired.

“I’m open to the referendum,” Ferguson said. “But when I look at the information and see that these roads were repaired less than 10 years ago. Why? They say the roads will last for 10 to 15 years, but the bill is for 20 years.”

Ferguson said that she would not take issue with the property tax increase if she felt the village was planning more for the future and more roadway expenses.

Despite many questions and concerns over village finances and satisfactory work quality, the crowd applauded resident and local business owner David Stuart who lauded the Village Board for its deliberations and work on the issue.

“We see the benefit in the referendum and voting yes to the referendum as an enhancement to the village,” Stuart said after the meeting. “The long-term benefits outweigh the short-term pain in terms of any kind of additional taxation on our home(s).”

Stuart listed property value increases, decreases in vehicle damage, improved bicycling conditions, and improved village image, as benefits he sees in the referendum. He also noted that despite the increase, Libertyville would remain one of the lowest-taxed municipalities in Lake County.

Village officials also assured residents that the bonds issued most likely would have a rate of about 5 percent, and not the 9 percent rate listed on the referendum.

Village: Road Repair Costs $32 Million

The village has identified $32 million worth of village roads that need rehabilitation. The village budget allots $1 million to yearly road repairs, but Public Works Director John Heinz says more is needed.

“We get calls all of the time about the condition of the roads,” Heinz said. “We probably need to spend $3 million per year to keep up with the roads.”

The village of Libertyville receives 7 percent of a homeowner’s property tax, which is used for police, fire, public works, community development, boards and commissions, administration, legal services, community organizations and recreation.

Past road improvements have been funded largely by fuel taxes and village vehicle sticker sales. Many of the roads slated for work under the referendum are in what Heinz calls the “rehabilitation mode.”

“From my 29 years of doing this, I know it’s very true that if you shave and pave, and resurface and rehabilitate the streets, it’s much less involved and much less expensive,” Heinz explained. “If they deteriorate more, they go into reconstruction mode which really increases the cost.”

Fewer Concerns Over Electric Aggregation

The electric aggregation referendum was met with fewer concerns. Northern Illinois Municipal Electric Collaboration representative Larry Shover led the explanation of the referendum, which would allow the village to negotiate competitive bids for electric rates from different electric suppliers.

“Last year, 19 villages in Illinois went to referendum, and of those 15 passed,” Shover said. “All of those villages ended up saving 23 percent to 30 percent over individual brokered deals.”

The state of Illinois recently deregulated energy markets, and as a result, companies now can compete to offer electrical power. This deregulation allows municipalities to negotiate the price of electricity for their residents. Though village officials believe this will bring savings, residents still are offered the opportunity to opt out of the program.

Some residents at the meeting were concerned that choosing a lower rate from the supplier would bring higher delivery rates from ComEd, the company that would continue to deliver and service the electricity.

Shover and Mayor Terry Weppler assured attendees that villages which have passed similar referendums had seen a significant drop in electricity rates, including Grayslake, where residents are seeing a 30 percent savings since passing the referendum in March 2011.

“There are 40 villages in the area that will hopefully pass the referendum,” Shover said. “Each resident in these villages should save about $170 on the electric portion of their bill.”

Related Articles:

• Guide to Libertyville's Electricity Aggregation Referendum
• Guide to Libertyville's Road Referendum

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