East Dundee adopts FY2025 budget, approves levy increase to shore up police pension

The East Dundee Village Board unanimously adopted the village’s FY2025 budget and approved a tax levy increase intended largely to meet police pension obligations.

Staff presented the budget and recommended a 5% water and sewer rate increase — a compromise between an earlier 10% recommendation and lower alternatives — and said the board had expressed consensus to pursue a 2¢ per gallon local motor fuel tax to help fund lead service line replacements. The budget was approved on a roll call vote with Trustee Saviano, Trustee Sauter, Trustee Mahoney, Trustee Coonsie and Trustee Britton voting yes.

Finance staff estimated the recommended levy would raise the village’s levy to approximately $950,200 and noted the village plans to capture growth from the Prairie Lakes TIF base as it is distributed by Kane County. Staff projected East Dundee’s portion of a typical property tax bill would rise by roughly $30–$60 depending on final county apportionment and homestead exemptions.

The budget memo flagged a plan to contribute the full actuarial amount to the police pension (approximately $1,270,000) and noted a budgetary gap of about $322,000 between the contribution requirement and current budgeted amounts. The board directed staff to bring final ordinance language for the water rates and fuel tax to a subsequent meeting and to file the levy with Kane County as required.

Next steps: staff will prepare formal ordinances/resolutions for the water rate increase and motor fuel tax, finalize levy paperwork for county filing and provide updated taxpayer impact estimates once Kane County finalizes assessment allocations.