Three Misconceptions about Home Rule
The number one misconception about home rule is that residents fear their property taxes will dramatically increase. Home rule communities actually rely less on property tax as a source of local revenue than do non-home rule communities. The fact is, The Villa Park Board, as a non-home rule community, have always been, and continue to be, committed to keeping property taxes as low as possible for our residents. Achieving home rule status will not change that commitment.
Northern Illinois University (NIU) conducted a study in 2002 on how 153 home rule communities in Illinois use their home rule powers for taxing. The study findings showed that home rule leads to lower property taxes by allowing home rule communities to diversify their tax base and rely more heavily on other sources of tax revenue. Many of these taxes (sales tax, hotel-motel tax, restaurant food and beverage tax, fuel tax, etc.) are paid in part or in whole by non-residents of the City. In other words, home rule taxes are predominately used to shift a portion of the local tax burden from residents to non-residents and in the process, lower the amount of funding needed from homeowners though their property taxes.
The second misconception about home rule is that residents fear that power will be taken away from the people. The fact is that residents actually gain more power under home rule because it gives local government authority and flexibility to address local problems, lessened dependence upon the State Legislature, and more freedom from legislative mandates. Home Rule can also protect the residents of VIlla Park from some Dupage County issued taxes.
The third misconception about home rule is that it allows the village board to drown the budget in debt. Home rule actually allows a community to reduce its borrowing costs. A home rule community has access to ordinary bank loans that are not authorized by State Statute, and they may use their credit, revenues and other resources to pay costs and to service debt related to intergovernmental activities. Therefore, we have more flexibility to invest our money and can get lower interest rates on loans and bonds that will stretch tax dollars further. Through better money management, on both the debt and savings side, our village can do much better for our residents IF we have home rule.