Highland council opens Truth in Taxation hearing on proposed property tax increase

Highland, Ill. — The Highland City Council on Dec. 1 held a Truth in Taxation public hearing on a staff proposal to increase the city’s estimated tax levy, with City Manager Chris Conrad outlining budget pressures and residents urging caution.

Mayor Kevin B. Hemann opened the hearing at 6:30 p.m. at Highland City Hall and asked City Manager Chris Conrad to explain why staff requested additional levy revenue. Conrad said Highland, as a Non‑Home Rule community organized under the Illinois Municipal Code, faces statutory limits on property tax levies that leave some core services subsidized from discretionary revenues.

Conrad presented 2014–2024 comparisons showing the total levy rose from about $3.25 million to $4.38 million and the city’s equalized assessed valuation from $177 million to $276 million. He told the council that property tax levies produce limited revenue for certain funds — for example, he said the city’s property tax levy for police protection yields roughly $200,000 a year while the police department’s budget is $3,692,956.40 for the 2025–2026 budget year.

“We can either cut core services or increase tax revenue,” Conrad said, explaining that staff first seek to use discretionary revenues but that continued reliance on them risks the operations of services that depend heavily on those funds, including police, streets and parks.

Conrad also cited rising unit costs for construction and maintenance — concrete that was about $82 per square yard in 2014 is about $171 today; asphalt rose from roughly $80 per ton to $142 per ton — and higher personnel and health‑insurance costs. Using a sample household (2,100 square feet, standard homestead exemption), he estimated the city portion of the tax bill for that property rose from $792.78 in 2014 to $1,032.24 in 2024; the proposed levy increase would add, on average, about $23.94 per year (about $2 per month) for that example.

At the public forum, resident Adam McDonald, who said he has lived in Highland about 10 years, urged the council to reject “such a high increase,” citing a 3% water and sewer rate increase and the continuation of a local grocery sales tax as reasons the cumulative cost of living is rising. New homeowner Allison Malesia said the proposed levy was “really scary” given other rising costs. John Kapp praised seasonal events on the Square but did not endorse the levy.

Conrad described steps staff have taken to limit cost growth, including reducing full‑time positions from 129 to 109 through attrition and technology, pursuing joint purchasing contracts and using discretionary revenues where feasible. He said staff are requesting a 7.2% increase in levy revenue but expect assessed‑value growth and new construction to mean the typical individual homeowner would see an increase closer to 2%.

Mayor Hemann reiterated that the levy is based on an estimate of next year’s costs and framed the decision as a choice between cutting services or raising revenue. The council did not take action on the levy at the special session. Councilwoman Barbara Bellm moved to adjourn; the motion was seconded by Councilman Napper. The roll call vote recorded Councilmembers Klaus, Sloan, Bellm and Napper as voting aye and none opposed. The meeting adjourned at 6:54 p.m.

The Truth in Taxation process requires the council to host public hearings when staff propose levy requests above certain thresholds; any formal levy adoption will be scheduled for a future council meeting where the council may set the final levy amount.