Why is Shields Township Defunding our Roads?

Why has Shields Township defunded Road Maintenance and Improvements over the past three years? The Township had taken the maximum allowable tax levy increases in December of the past 3 tax years (2022-2024) growing the total levy by 15%. The levy of 2021 included a 48% allocation for the road and bridge fund, but only 32% was allocated last year and is planned for allocation this year (December of 2025) but not yet approved.

The tax levy of December of 2022 lowered the road fund by 21% and increased the administrative (corporate) fund by 32%. The administrative fund increase included the road money that was taken away and the total maximum allowable tax increase for all funds. Strangely, the minutes from the Special Workshop meeting the prior month led the Board to believe the maximum levy increase was necessary for the roads which were “grossly underfunded” per the Road Committee Chairperson, but specific numbers were not provided. No information on the previous year was provided, either. Only the total increase for the levy was provided to the Board. Per the meeting minutes, appropriation numbers were not discussed in December 2022, so it is unclear if the Board was aware they were decreasing the road fund portion of the levy.

The road fund has not been increased since December of 2022, while the administrative fund received an 8% annual increase for the next two years, having received the full increase for the levy into the fund. The administrative fund is now 67% of the levy, up from 51% in December of 2021. What was the rationale for decreasing the road fund after telling the Board it was “grossly underfunded”? Why does the administrative fund need over a million dollars annually and what expenses are paid for through the administrative fund?

As you are probably aware, Illinois has the largest number of local government units and the second highest property tax rates in the nation. In recent years, Illinois has passed laws to allow consolidation of government units. The purpose of these laws is to decrease the burden on taxpayers, reduce administrative overlap and increase efficiencies.

One such law became effective in May of 2021, eliminating Township Highway Districts in Lake County with less than 15 miles of road to maintain. Shields Township Road and Bridge District was dissolved, having only 8.5 miles of road in the unincorporated areas of Lake Bluff (Arden Shore North, Arden Shore South and Knollwood). The powers, duties and obligations of the Highway Commissioner shifted to the Township Board. The two government unit tax levies became one levy for Shields Township which includes the Road and Bridge Fund.

The Illinois legislature made one major oversight with this law to eliminate small Township Road Districts in Lake County. It did not consider the legal requirement to distribute 50% of road and bridge fund taxes back to the municipalities, a law that has been in place since the 1970s. The Shields Township unit of government has and continues to receive 100% of the tax dollars collected from the levy. But the Shields Township Road and Bridge Fund tax is distributed 50% back to the municipalities for upkeep of the municipal roads. It seems that if a decrease in road funding is warranted then the funds should go back to the taxpayers, not the administrative fund.

While the Township government is not the only source of road funds for the municipalities, there are far more municipal roads to maintain including 120 miles in Lake Forest, 49 miles in North Chicago, and 32 miles in Lake Bluff. It is unclear how needed the road funds were to the municipalities. The municipalities are aware of the decreased levy for the road fund but have no say over how the Township appropriates funds.

This year’s proposed total tax levy of $1,596,474 will provide a 4.99% increase into each fund. The net cumulative loss to the road fund and gain to the administrative fund since 2022 is estimated at $850,000. Estimated losses across the Township are roughly $450,000 from the unincorporated areas, $21,000 from the City of North Chicago, $244,000 from the City of Lake Forest and $131,000 from the Village of Lake Bluff.

Of note, Shields Township used the administrative fund to purchase $175,000 worth of road vehicles for the unincorporated areas over the past 3 years. Per the 2025 Audited Financial Statement the administrative fund received $1,111,991 of income and paid $754,474 for expenses. Of the total income received to the administrative fund, an excess of $357,517 (32%) was left at year end. Expenses paid include salaries and benefits (22.5%), legal counsel (11.7%), outsourced assessment services (8.5%), a road vehicle payment (5.3.%), social services (3.6%), accounting (2.9%) and general overhead (13.3%), which includes office space, computers, software, insurance and supplies. So don’t be deceived when you hear on local podcasts from the people running the Township behind the scenes that money is needed for social services and property assessments.

The elimination of the Highway District has not shown any signs of decreasing taxpayer burden, at least not for the Shields Township residents. While the levy process was not illegal, it seems to be uninformed and severely lacking concern for the community at large. The unincorporated area has been hit hardest, losing 33% of their road taxes annually. Recent work of the Stormwater Management Commission of Lake County to provide drainage solutions to the unincorporated area will go unfunded without money to match available grants. In the meantime, the administrative fund cash and equivalent reserves grew by $666,000 in just the last 2 years increasing the value to $1,540,000. Shields Township residents have the right to know what the Township Supervisor and Board plan to do with this extra money!

To express your concerns, you can attend the 5 pm, November 20th Shields Township or email them to the Board at the following addresses:

Supervisor Kamilla Urso – Kurso@shieldstownship.com

Trustee Catherine Sabilla – Csabilla@shieldstownship.com

Trustee Chris Prager – Cprager@shieldstownship.com

Trustee Michelle Parnell – Mparnell@shieldstownship.com

Trustee Trent Swarthout – tswarthout@shieldstownship.com