Finance staff recommends 2.5% CPI levy increase plus new-construction allowance to cover pension and insurance costs

Finance staff presented the village's preliminary 2025 tax levy calculations and recommended taking a 2.5% CPI increase plus the new-construction allowance.

Jason, the finance presenter, explained the village is subject to the Property Tax Extension Limitation Law and that staff's recommended approach balances pension and insurance cost pressures. He said the most recent police-pension actuarial valuation raised the recommended contribution to $2,054,846, an increase of $98,929 from the prior year, and noted the pension is roughly 62.9% funded.

"We increase [last year's levy] 2.5% for the CPI, and we add in the new construction," Jason said when describing the calculation that produced a proposed levy of about $3,024,200, roughly a 3.6% increase in the levy amount from last year. He used a $350,000 hypothetical house to illustrate potential homeowner impact and said the modeled result could be a net change of only a few dollars depending on valuation movement.

Trustees questioned the percent to request and whether the village should take a lower number given the large EAV growth in recent years. Jason said the village could have taken up to 2.9% (plus new construction) but recommended 2.5% to roughly match increased pension and insurance obligations. Multiple trustees voiced support for 2.5; one trustee preferred zero. The chair tallied an informal four trustees in favor of 2.5.

Jason also reviewed six special service-area (SSA) levies the village administers and said several SSAs will see increases this year (Oak Hill up about $11,006.25; Timber Oaks a one-year catch-up of roughly $6,500 to eliminate a deficit). He noted public hearings on SSAs and the truth-in-taxation hearing are scheduled for Dec. 1 and the levy notice will run in the newspaper Nov. 21.