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DeKalb manager recommends $8.98 million levy to hold city tax rate steady; council signals support
Summary
City Manager Nicholas recommended an $8,979,039 property tax levy intended to hold the City of DeKalb's tax rate roughly unchanged for 2025; council discussion focused on the levy's role funding police and fire pension obligations and the effect of rising property values on taxpayers.
City Manager Nicholas presented the City of DeKalb's annual property tax levy options on Oct. 27 and recommended a levy of $8,979,039, an amount intended to keep the city's property tax rate roughly the same as the prior year while meeting pension funding needs.
Nicholas told the council the estimated equalized assessed value (EAV) for 2025 is $1,441,621,388 (this figure includes deductions for property tax abatements). He also said the city's share of the overall tax rate has declined substantially in recent years: aggregate tax rates affecting local taxpayers fell from about $11.74 per $100 of EAV in 2019 to about $7.97 per $100 last year, and the city's own property tax rate has decreased about 48% since 2018. At the same time property values in most of the city have increased (the manager cited an approximate 49.6% rise in assessed value over several years), which can raise individual bills even if the rate is held steady.
Nicholas emphasized the levy recommendation is focused on meeting actuarial obligations for the police and fire pension funds. He said consolidation of firefighter pension administration statewide reduced fees and lowered the city's unfunded liability by roughly $1 million over the last year; that change plus other adjustments reduced the shortfall from the prior year by a few hundred thousand dollars. The manager described the 7% actuarial assumption for pension returns as a key input and stated the $8,979,039 levy would keep the city on track without increasing the tax rate.
Councilmembers praised prior work to reduce aggregate tax burdens and expressed support for holding the city rate steady. Alderman Smith and others said continuing to fund pensions and capital needs (roads, water, equipment) while preserving the city's competitiveness for economic development weighs on the decision. Alderman Carlson, who said he has a long personal interest in pensions, added, "Never will I allow people not to get their pension," in the course of supporting attention to pension funding.
No formal ordinance or final levy adoption vote was recorded in the public portion of the meeting; councilmembers signaled support for the manager's recommendation and the manager said he would proceed with the next steps for the levy process and required public notices.
Key figures discussed at the meeting include the recommended levy ($8,979,039), the estimated EAV ($1,441,621,388), and a stated policy aim of holding the city's tax rate the same as the prior year while meeting pension actuarial obligations.
