The Lansing Village Board approved a $9,577 settlement for tax rate objections from the 2011 through 2014, which total $84,695.
The objection alleged the amount added to various village levies by the county for loss and cost of collection was “unnecessary and excessive” based on the existing surpluses in the funds and the previous collection amounts, according to a letter from village attorney Alan Mullins to Lansing Mayor Patty Eidam and village trustees.
“If this objection proceeds to a hearing, the village would be in jeopardy of losing a portion of the levy from many funds. Therefore, this objection alone warrants consideration of a settlement,” Mullins wrote.
Mullins said he doesn’t know who filed the objection because it is one large complaint, totaling 1,000 pages, filed against almost every taxing body in Cook County. Typically the objector is a commercial or industrial property, he said. There is one attorney for all of the objectors and that is who the village negotiated with, he said.
The final pages of the complaint include identifying information of the property that filed the objection, Mullins said, but he only received the pages with objections against his clients.
“We do not receive those pages because they make no difference in what we do with the objections,” Mullins said.
Tax rate objections are considered in four year groups and the Cook County Circuit Court won’t open a new four year group until all the objections in the previous group have been resolved, Mullins wrote.
Larger taxing bodies, like the city of Chicago, have multiple sets of objections for millions of dollars filed against them, which take years to settle, Mullins said. Meanwhile, even if municipalities have their tax rate objections resolved, the entities have to wait until the larger taxing bodies resolve their objections before moving on to the next four-year group, he wrote.
From 2011 to 2014, objections were filed against the village’s corporate, bond and interest, police pension, fire pension, IMRF and Social Security funds, Mullins wrote:
* In 2011, the objection amount is $19,203 and the settlement amount is $3,123
* In 2012, the objection amount is $13,810, and the settlement amount is $2,027
* In 2013, the objection amount is $17,047, and the settlement amount is $2,648. In 2014, the objection amount is $15,835 and the settlement amount is $1,779.
Objections were also filed against the Lansing Library Fund levy for a total of $18,800 for the 2011-2014 period, but the objectors agreed to dismiss those claims, Mullins wrote.
The tax rate objections total $84,695, Mullins wrote, while the settlement, at a 0.008 rate, would total $9,577, so he recommended the board approve the settlement.
“The tentative settlement is very favorable given the potential refunds at issue, the history of settlement rates in these cases and the potential cost of litigation,” Mullins wrote.
Mullins said it is very rare for tax rate objections to go to a hearing because of the amount at stake compared to the amount of the settlement.
“It wouldn’t make sense to incur the cost of going to hearing and risk a judgment for a greater amount,” Mullins said.
The board approved the settlement Nov. 21 in unanimous 6-0 vote.
Trustee Saad Abbasy said he voted in favor of the settlement based on difference between the objection amount and the settlement.
“This is my first experience learning about tax rate objections and the impact on the village. Based on the information provided to us, the agreed upon settlement felt like the best option for the village,” Abbasy said.
The settlement will be taken out by the Cook County treasurer’s office from future village property tax disbursements once all the 2011-2014 objections in Cook County are settled, Mullins wrote.
“We cannot tell you when that will occur. However, we do not foresee that occurring within the next year,” Mullins wrote.
akukulka@chicagotribune.com
