The Downers Grove Village Council agreed Tuesday to take out $4 million in debt as part of this year’s budget.

The village will borrow money to put toward the $340 million watershed improvement plan, which the 2008 budget initially allocated $6.5 million for projects. The 30-year debt service stream will be paid for by a 0.25 percent increase to the home rule sales tax, from 7.25 to 7.5 percent — which will take place next year — and a $2 million property tax increase, which will result in an approximate $0.09 cent rate increase. An initial suggestion for a water surcharge has been abandoned.

“We haven’t touched the property tax in a long time,” said Downers Grove Mayor Ron Sandack. “Frankly, that plan has got to change. Previous councils have been operationally budget-minded, but really not all that intently focused as this council and this budget towards capital needs.”

The debt will allow the village to add another high-priority project to the 14 already scheduled to begin in 2008. The extra money will help condense the construction time for five projects and allow the design work to be completed for all 16 high-priority projects by 2010.

Commissioner William Waldack said he did not want the village to take out debt, but said he would not vote against the budget. Commissioner Marilyn Schnell said she had heard concern from a resident about the tax increases and wanted to make the village’s intent clear — the bonds will allow the projects to be done quicker.

“This is being used to alleviate some of the flooding,” she said. “It’s a necessary thing. We’re trying to do it for the community.”

Council members were divided on whether to allocate budget money toward subsidizing the village’s leaf collection. If approved, the village would pay $135,000 for the service in 2008, but not require residents to put stickers on their disposal bags.

While Commissioners Bruce Beckman and Sean P. Durkin wanted to give the system a chance in the hopes it would decrease the amount of leaves pushed into the street, other commissioners were skeptical about any positive impact. Commissioner Martin Tully noted it would also penalize many residents who have their own yard service. Waldack said he believes violations are primarily due to how labor intensive leaf gathering and bagging is.

“The labor isn’t going out and getting a sticker and putting it on the bag,” he said. “If the process could be changed, I’d support that. But we’re just doing the same process and playing around with the stickers.”