Peoria City Council accepted an estimate of the city’s property tax levy of $34,418,810 at an estimated rate of 1.3483, the council recorded in agenda item 25-277.

Finance Director Kyle Cratty told the council that accepting a levy estimate is a procedural step and not a binding final levy. Cratty said the estimate maintains the current rate subject to truth-in-taxation and recommended not attempting to “recapture” revenue growth that was not collected last year; instead, staff proposed holding the rate steady. He cited the Illinois statute governing levy estimates, 35 ILCS 200/18-60, during the presentation.

Cratty explained the difference between the aggregate levy (about $39 million including library debt) and the portion subject to truth-in-taxation, which more directly reflects operational levies. He noted the council has maintained a $2,000,000 line on the levy for road improvements for about a decade and that the city does not currently capture growth on that fixed $2,000,000 levy piece.

Council members asked for clarifications about assessed value changes, the relationship between equalized assessed value (EAV) and inflation, and how levy and tax-bill changes affect homeowners. Cratty and the city manager discussed the recent EAV growth and why a maintained rate combined with higher assessed values can produce higher bills for some homeowners. Cratty also said the aggregate levy rate could drop slightly next year as library bonds are retired and the city’s fixed $2,000,000 levy remains unchanged.

Council member Riggenbach moved approval of the levy estimate; Council member Kelly seconded. The motion passed unanimously.