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Committee approves 0% loan to Village of Hudson after county tax-extension data-entry error omitted 612 parcels
Summary
The executive committee approved an intergovernmental agreement to lend the Village of Hudson temporary financial assistance after staff reported a tax-extension data-entry error omitted 612 parcels from Hudson's levy; the clerk called it a human data-entry error and ASA Rude said Illinois law provides a remedy; estimated certified-mail costs to notify affected taxpayers are $20,000'$30,000.
The McLean County Executive Committee voted July 14 to approve an intergovernmental agreement that would provide the Village of Hudson with a temporary, 0% loan to cover a shortfall created by an administrative tax-extension error.
Clerk (recorded in the meeting) explained the problem: "there are 612 parcels outside of the village of Hudson that were not included in the village tax extension," and the omission resulted from a "data entry human error" that incorrectly added parcels to a tax code. The clerk said staff are continuing to research the issue with the county's tax vendor and have emphasized cross-training to reduce future errors.
Member Klein asked whether statutory requirements had been followed to correct the error; Assistant State's Attorney Rude responded that the Illinois property tax code provides a procedure to correct administrative errors and, if the statutory remedy is properly implemented, "there really shouldn't be any actual harm left over to any of the parties." Rude said temporary effects could include a taxing body missing revenue for a year or two before collections are corrected.
Administration and the clerk described the borrower-repayment mechanics: the county would place a separate line item on affected tax bills to collect the corrected amounts in the next tax cycle and intercept those funds to repay the loan. Administration also noted there are additional administrative costs associated with notifications; certified-mail costs for a prior incident were just under $40,000 and staff estimated this instance will be roughly $20,000'$30,000 for mailings.
The committee discussed internal process changes: increased auditing and proofing of tax codes, more cross-training in the tax-extension process, and use of vendor expertise to validate corrections. Clerk said the county has been working to cross-train staff and appointed a staff member to learn tax-extension duties alongside other vital records responsibilities.
The committee then approved the intergovernmental agreement and the loan motion (item 5 b 1 e) by voice vote; a second was recorded (by Friedrich) and the motion passed. The clerk confirmed the county believes it has complied with statutory requirements for correction and will continue coordination with legal and the treasurer's office.
Next steps: if the agreement is executed the county will disburse the loan to Hudson, notify affected taxpayers via certified mail and collect repayment through a separate line on future tax bills as permitted under state procedures.
