Cook County Treasurer’s Tool compares debt burden to home value
A new tool created by Cook County Treasurer Maria Pappas lets landowners know how much of local government debt is owed to them.
The unique tool revealed that Willis Tower carries a local government debt of nearly $ 289 million, which is 41.5% of its $ 697 million value. A house in Riverdale turned out to have $ 31,800 in debt, or 48% of its value. The debt of a Hodgkins house is $ 127,400, or 25.7% of its value. However, the debt on wealthy properties in low tax areas, like Barrington Hills and Winnetka, falls below 10% of the value of those properties.
Pappas said: “Most reports identify government debt as an amount per person. My latest study takes a more focused approach by showing the debt against each property in Cook County.”
These calculations are available on cookcountytreasurer.com, where homeowners can search their address to see their local debt versus the value of their home. Figures are presented in dollars and percentages.
The methodology also allows Pappas to compare the overall debt burden borne by residents of any town or village in Cook County. The exercise revealed that a heavier debt weighs on the less wealthy suburbs where the populations are more than 50% black or Latin American. Taxes are also higher in minority areas, indicating that increased debt leads to higher property taxes.
“Home purchases in Cook County come with a hidden credit card balance, in the form of local government debt. Homeowners end up paying off that debt, in addition to covering their mortgage costs. mortgage, utilities and maintenance, ”added Pappas.
To access these calculations or learn more about the methodology of the tool, click here.