Village Considers Phasing Out Impact Fee Reductions as Growth Continues

New Lenox Village Board of Trustees Meeting | Dec. 8, 2025

Article Summary: The New Lenox Village Board advanced a proposal to gradually phase out a long-standing 30% reduction in developer impact fees. Officials cited the need to balance the demand for services created by new residents with the pressure to keep property taxes low.

Impact Fees & Construction Value Key Points:

• Fee Restoration: The village proposes reducing the current 30% impact fee discount in increments (25%, 20%, 15%, 10%, 5%) until full fair market value fees are restored.

• Service Demand: Staff noted that continued growth creates a demand for services that impact fees help offset.

• Permit Valuations: A separate ordinance proposes increasing the construction value data used for building permits by 5%, rather than using the higher International Code Council data.

The New Lenox Village Board of Trustees heard the first reading of an ordinance on Monday, December 8, 2025, that would slowly eliminate the 30% reduction in fair market value currently used to calculate impact fees.

For several years, the village has applied a 30% reduction to impact fees, including transportation, municipal building, and school construction fees. However, with the village experiencing sustained growth, staff recommended returning to the full fee structure to cover the cost of providing services to new residents.

“While that has proven very successful… as we continue to grow, there’s still a demand for providing services to new residents and also pressure to keep property taxes down,” village staff explained.

Rather than removing the reduction all at once, the proposed ordinance would phase it out over time. The discount would step down to 25%, then 20%, and so on, until it reaches zero. Mayor Tim Baldermann expressed support for the gradual approach.

“It’s one of those things we’re having success obviously with growth… so you want to just whack it right away. But I think to slowly phase it makes sense,” Baldermann said.

Additionally, the Board considered an update to the construction value data used for building permits. Instead of adopting the International Code Council’s August data—which officials noted remains high following post-COVID cost surges—the village proposes a modest 5% increase to the current valuation figures. Both items will return to the Board for final approval at a future meeting.