Title
Resolution Determining The 2025 Tax Levy In Compliance With The Truth In Taxation Law
History
Executive Summary
• The property tax request for the police pension contribution will be higher than the tax levy approved one year ago. The police pension tax levy will increase from $5,404767 extended in 2024 to $6,085,639 in 2025 (an increase of $680,872, or 12.6%). This higher levy is due to demographic changes during the current year; having 8 members retire and replaced with new hires, some were lateral hires from other municipalities. The date of the actuarial valuation used to determine this contribution is 12/31/2024.
• The proposed Village’s share of levy for the Illinois Municipal Retirement Fund (IMRF) has increased by $141,283, or 7.42%, and the Village’s share of Social Security and Medicare taxes (FICA) has increased by $71,913, or 8.15%. In accordance with State Statute, the municipal contribution rate for IMRF is actuarially determined each year by IMRF. Contributions are calculated as a percentage of covered payroll. A number of State statues, as well as court decisions, mandate that local governments make their pension contributions. The recommended tax levy incorporates the Village’s mandated pension contributions.
• The long-term bond funding plan contemplates annual levy for debt service of approximately $7.6M for governmental sources. This year’s direct levy for bond payments will total $3,215,279, with the remaining portion from General Fund dollars transferred to the Debt Service Fund to pay for payments of the 2025 bond issuance sold on October 21st, 2025, per the 2023 Financial/Capital Improvement Plan. This transfer from Genera Fund to the Debt Service will be funded by the recent increase in Home Rule Sales Tax, as well as the implementation of the Utility Tax, which began in June of 2023.
• Village staff proposed property tax levy represents a $494,063 increase for General Corporate Purposes, or 3.75%.
• This levy assumes a conservative 3.75% increase in EAV growth based on the past 10-year history. In order to capture this new growth without increasing the tax levy burden on tax payers, the proposed tax levy request is also capped at 3.75%.
• The Orland Park Library has not yet approved their levy request, but will do so at their November 17, 2025, Board meeting. The Library levy for operations includes a maximum increase of 4.5% for placeholder purposes. With the 4.5% increase, the total levy for the Library would be an increase of $318,690.
• Since the proposed tax levy is not more than 5% than the taxes extended for the prior tax levy, a “Black Box” is not required. We will, however, publish the truth in taxation notice for full transparency, and will be available on the Village website.
• The attached Tax Levy Determination Resolution, proposed to be approved at the November 3, 2025, Village Board meeting, will illustrate an overall maximum property tax levy increase of 3.75% for the Village. The Library levy includes a maximum tax levy increase of 4.5% for operations with no levy for debt service. This Tax Levy Determination Resolution will illustrate an overall maximum property tax levy increase for the Village and the Library combined of 4.01%. Once the tax levy is determined at the November 3, 2025 meeting, the Village Board can set the tax levy amount equal to or below the maximum amount, but it cannot set the levy above the maximum amount. The actual tax levy will be approved at the December 1, 2025, Village Board meeting.
Tax Levy Process
In order to collect a property tax, government agencies in the State of Illinois are required to establish a "tax levy". The tax levy is a projection of the monies the government agency obtains through the annual property tax. The Village Board adopts a property tax levy by ordinance, and files the ordinance with the Cook and Will County Clerks by the last Tuesday in December.
Funds identified in the tax levy and subsequent collections of property tax are utilized by the Village, along with other revenue sources, to fund the Village Budget. One of the more difficult aspects to understand regarding the property tax system in Illinois pertains to its timing. The Village’s 2025 tax levy will be incorporated in the property tax bills property owners receive in 2026 and will be used by the Village to fund a portion of the 2026 Budget.
The tax levy ordinance adopted by the Village is filed with the Cook and Will County Clerks, whose offices determines the "tax rate" needed to raise the dollars levied by the Village. As a home-rule community, the Village levies in dollars rather than by a specific tax rate, although Village staff can reasonably estimate the tax levy dollar amount needed to match a certain tax levy rate. The Village does not receive any additional dollars if the assessed valuation of property in the Village increases or decreases. Rather, the amount of the Village tax levy remains the same, and is spread over a greater or lesser total assessed valuation of property (which results in a decrease or increase in the actual Village tax rate).
For the 2025 tax levy, the total assessed valuation is anticipated to increase as a result of property growth.
The actual property tax rate is determined by the Cook and Will County Clerks and appears on the property owner's property tax bill. The tax rate is applied to the property's assessed valuation, which determines the amount of money the taxpayer pays to the Village and other taxing agencies. Property owners will note that the Village is only one of many taxing bodies that appear on the annual property tax bill accounts for approximately 6% of a property tax bill.
Impact to Homeowner
The final element in preparing the tax levy is estimating the impact of a property tax levy on a typical homeowner. The key piece of information for estimating this impact is determining what the equalized assessed valuation of all property in the Village will be for the pending tax year. The equalized assessed value, or EAV, is the result of applying the state equalization factor to the assessed value of all parcels of property in the Village. Tax bills are calculated by multiplying the EAV (after any deductions for homesteads) by the tax rate. The EAV is not certified until months after the tax levy ordinances are due in December.
Recommended Tax Levy
Since the proposed tax levy is not more than 5% of the taxes extended for the prior tax levy, a “Black Box” is not required. However, the Village will publish the Black Box for full transparency and will hold a hearing on December 1, 2025. The attached Tax Levy Determination Resolution, will illustrate an overall maximum property tax levy over the previous year's extended levy. Once the tax levy is determined at the November 3, 2025, meeting, the Village Board can set the tax levy amount equal to or below the maximum amount, but it cannot set the levy above the maximum amount. The actual tax levy will be approved at the December 1, 2025, Village Board meeting.
The text of the proposed “Black Box” hearing notice is as follows:
NOTICE OF PROPOSED PROPERTY
TAX LEVY FOR THE
VILLAGE OF ORLAND PARK
I. A public hearing to approve a proposed property tax levy increase for the Village of Orland Park for 2025 will be held on Monday, December 1, 2025 at 7:00 p.m. at the Village Board Room located at the Frederick T. Owens Village Hall, 14700 S. Ravinia Avenue, Orland Park, Illinois 60462.
Any person desiring to appear at the public hearing and present testimony to the taxing district may contact Mary Ryan Norwell, Village Clerk, 14700 S. Ravinia Avenue, Orland Park, Illinois 60462, telephone number (708) 403-6150.
II. The Proposed corporate and special purpose property taxes to be levied for 2025 are $17,854,474.
III. The property taxes extended for debt service and public building commission leases for 2024 were $2,801,728. The estimated property taxes to be levied for debt service and public building commission leases for 2025 are $3,215,279. This represents a 14.76 % increase over the previous year.
IV. The total property taxes extended or abated for 2024 were $20,257,000. The estimated total property taxes to be levied for 2025 are $21,069,753. This represents a 4.16% increase over the previous year.
PRESIDENT AND BOARD OF TRUSTEES
VILLAGE OF ORLAND PARK, ILLINOIS.
By: Mary Ryan Norwell, Village Clerk
Financial Impact
Recommended Action/Motion
I move to adopt a Resolution, entitled: A RESOLUTION DETERMINING THE 2025 TAX LEVY IN COMPLIANCE.