The village also is considering creating a permanent tax levy to fund streetprojects, instead of borrowing money through bonds.
A 22-unit multifamily apartment complex with two, first-floor live-work units — the first of its kind for Riverside — is coming to the village.
The Riverside village board approved a special use permit Dec. 7 for the mixed-use development at 28 and 30 E. Burlington St.
The complex is expected to be a five-story building. The live-work units will allow residents to operate a business in the front and live in the back of the apartment. The building will also feature green infrastructure, such as a green roof, permeable pavers and high-efficiency appliances, and other sustainable elements that go beyond the minimum code requirements.
The project is a first of its kind in Riverside and falls under village’s transit-oriented development strategy, which aims to encourage more people to use the train station and reduce car dependency.
“It’ll bring in more living options for residents, but it’s also an attractive market for young professionals,” said village president Douglas Pollock.
Several Riverside residents spoke up in support of the new building, showing interest in downsizing themselves or as an option for their children.
Revenue for street maintenance
The board also discussed the possibility of renewing bonds or creating a separate revenue source for more than $2 millions-worth of street maintenance projects. The village borrowed money in 2004 and 2014 to fund street repairs, which resulted in additional property taxes and interest payments.
Pollock said that over these years, the village paid more than a quarter of a million dollars in interest and called it a waste of taxpayer’s money. He said he favors an ongoing tax levy for street maintenance, rather than borrowing money again.
“Street maintenance is something that we have to do forever, it’s not a one-time expense,” Pollock said.
The board is facing a decision on how to fund the street improvement projects for the next decade. In the past, the village used referendum debt to finance these projects, but the current debt will expire in 2024.
If they decide to get another bond, the board has two options for the size and duration of the new debt. Option one would keep the property tax rate for debt service unchanged, but would limit the amount of debt to $2.25 million for 10 years, or $3.05 million for 15 years.
Option two would increase the property tax rate slightly to account for inflation, and would allow the board to issue $2.65 million for 10 years of debt.
If they adjust for inflation, properties with a value of $300,000 will see a tax increase of $12, $400,000 house will see a $16 increase, and half-million dollar house will receive a $24 increase.
However, with the permanent tax levy, there would be no tax increase, officials said.
The village has other sources of revenue for street projects, such as sales tax, fuel tax, and grants, but they are either limited, uncertain, or insufficient, officials said.
The sales tax revenue depends on the performance of local businesses, the fuel tax revenue may decline due to the rise of electric vehicles, and the grants are competitive and not guaranteed, they added.
The village’s capital plan shows the need for additional funding to maintain and improve the street infrastructure.
The discussion is ongoing.