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Committee reviews preliminary 2024 tax-levy scenarios, staff recommends 3.4% CPI plus new construction
Summary
Staff presented preliminary levy estimates using the current CPI of 3.4% and the county's preliminary EAV of about $811 million; staff said the CPI request plus new construction roughly covers rising police pension obligations and warned that scheduled elimination of a state grocery tax could remove about $700,000 in annual revenue. Trustees asked staff for homeowner-impact scenarios to review at a future meeting.
At the Oct. 21 Committee of the Whole meeting, village finance staff opened the discussion on the 2024 preliminary tax levy and recommended using the current consumer price index (CPI) of 3.4% plus new construction growth as the starting point for the village’s levy request.
Jason (staff) explained levy mechanics under the property tax extension limitation law — presented in the meeting as the "PTO" — and said the county’s preliminary equalized assessed valuation (EAV) is about $811,000,000 with residential valuation making up roughly $616,000,000. Using the 3.4% CPI and factoring in new construction, staff estimated the levy request would be in the neighborhood of $2,000,009 (notation per staff memo) and noted that because EAV increased significantly, the village’s tax rate could decline even if the levy increased by CPI.
Staff highlighted rising police pension costs as a major driver: the village targets 100% pension funding by 2040 (staff noted state law requires 90% by 2040) and recent actuarial changes and retirements increased required contributions. Jason said the CPI-plus-new-construction approach would approximately cover this year’s projected pension increase and cautioned that the scheduled elimination of a state grocery tax would remove about $700,000 in general-fund revenue unless the village acts locally to replace it.
Trustees debated whether to take the full CPI allowance or a smaller rate. Some argued for minimal increases to limit homeowner impact; others urged a gradual increase now to avoid larger cuts or additional local taxes later. The committee asked staff to return in late November with scenario tables showing the average homeowner impact at different levy choices so the board can set a levy for formal notice and public hearing in advance of the December final vote.
Notable direct quote from staff: "The current CPI for this levy we're talking about tonight is 3.4%." The committee did not adopt a final levy amount at this meeting.
