Alternate-revenue bonds can cost taxpayers big in small villages

The alternate-revenue bond allows villages and cities to borrow money without taxpayer approval. It also allows villages to borrow more money than allowed under current property tax caps.  Some villages at the detriment to taxpayers are abusing the chapter of Illinois law that provides this borrowing power.  If the village cannot make the payments on the loans, then property taxes automatically increase to cover the payments.

For more on this story read, “Small suburbs exploit tax loophole.”