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University Park trustees approve modest property tax levy increase tied to pension costs
Summary
Trustees approved an ordinance levying taxes for FY 2025–26, a small increase the village finance presenter said is driven mainly by rising pension contributions and actuarial requirements; trustees asked for long-term pension projections and reserves.
University Park trustees voted to approve an ordinance levying property taxes for the fiscal year beginning May 1, 2025 and ending April 30, 2026, a measure the village’s finance presenter said would modestly raise the levy to cover rising pension obligations.
The finance presenter said the 2024 levy was $10,300,000 and the proposed 2025 levy is $10,375,345, which he characterized as a 0.72% true increase compared with last year and an increase of about $75,000 overall. He estimated the change would add roughly $20–$25 to an average property tax bill for a home valued at the figure provided in the packet. ‘‘When we calculate what the increased percentage is, it’s taking what the Will County extension is,’’ the presenter said, adding that Will County figures are used for the statutory math because they represent the larger share of the levy.
Trustees pressed staff on how much of the levy would go to pensions. One trustee said she believed roughly 26–27% of levy revenue would be used for police, fire and IMRF pension contributions; the presenter confirmed pension contributions are a large and growing share of the levy. The presenter cited actuarial valuation changes showing police pension contribution rising from about $902,000 to $975,000 and fire from about $873,000 to roughly $1,000,000, and noted a statutory target that municipalities work to fund a specified percentage of pension costs by 2040.
Trustees asked whether the village maintains reserves and whether there is a five- or ten‑year pension plan. The presenter replied that the village’s overall revenue stream includes licenses, permits and interest income and said that, beyond salary and staffing decisions governed by union contracts, much of the pension liability and required contributions are driven by state rules and actuarial calculations. He recommended obtaining actuarial projections and monthly consolidated-fund reports if trustees wanted more detail.
The levy ordinance was moved, seconded and approved by roll call.
What happens next: the levy will appear in tax calculations as permitted under state procedures; trustees asked staff to make pension projections and provide the actuarial reports referenced during the discussion.
