Title
Resolution Determining The 2026 Tax Levy In Compliance With The Truth In Taxation Law
History
Executive Summary
Village Levy Remains Flat: The proposed property tax levy for the Village of Orland Park is $13,669,063, which is identical to the prior year's extension ($13,669,063) - representing a 0.00% change (flat levy).
Police Pension Contribution: The police pension tax levy is $6,592,034 for 2026, compared to $6,085,639 extended in 2025 (an increase of $506,395, or 8.32%). This is driven by actuarial requirements and demographic changes, including retirements and replacements (some lateral hires from other municipalities). The actuarial valuation date used is December 31, 2025.
IMRF, Social Security, and Corporate Purposes:
The IMRF levy remains flat at $2,044,651 (0.00% change).
Social Security (FICA) decreases by $491,945 (-51.54%) to $462,487.
General Corporate Purposes remains flat at $100,000.
Recreation & Parks remains flat at $1,269,063.
Debt Service: The direct levy for bond payments totals $3,200,828 for 2026, down slightly from $3,215,278 in 2025 (-0.45%), with specific bond issues appropriately offset by debt service abatements.
Orland Park Public Library Levy: The Library levy has not yet been approved by the Library Board, but will do so at their November 16, 2026, meeting. A proposed levy totaling $7,690,682 for operations (a 4.21% increase from the previous year's $7,379,985), with no levy for debt service. This is the maximum potential levy in which the Library can increase, until the actual levy is determined,
Equalized Assessed Valuation (EAV): The total EAV for the Village is estimated at $3,080,945,473 (comprising $3,059,977,115 in Cook County and $20,968,358 in Will County), accounting for the Cook County Triennial Reassessment.
Combined Total Levy: The combined total levy for the Village of Orland Park and the Orland Park Public Library is $21,359,745, representing an overall increase of 1.48% over the previous year ($21,049,048).
Truth in Taxation Compliance: Since the proposed total tax levy increase does not exceed 5% of the prior year's extension, a formal "Black Box" Truth in Taxation public hearing notice is not legally required. However, the Village publishes transparency notices to keep the community fully informed and will be available on the Village website.
The attached Tax Levy Determination Resolution, proposed to be approved at the November 16, 2026, Village Board meeting, will illustrate an overall flat property tax levy, no change from prior year for the Village. The Library levy includes a maximum tax levy increase of 4.21% 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 1.48%. Once the tax levy is determined at the November 16, 2026, 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 21, 2026, 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 2026 tax levy will be incorporated in the property tax bills property owners receive in 2027 and will be used by the Village to fund a portion of the 2027 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 2026 tax levy, the total assessed valuation has increased as a result of property growth and the triennial reassessment to capture improving home values.
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.
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 21, 2026. The attached Tax Levy Determination Resolution, which would be approved at the November 16, 2026, Village Board meeting, will illustrate an overall maximum property tax levy over the previous year's extended levy. Once the tax levy is determined at the November 16, 2026, 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 21, 2026, 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 2026 will be held on Monday, December 21, 2026 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 2026 are $18,158,917.
III. The property taxes extended for debt service and public building commission leases for 2025 were $3,215,279. The estimated property taxes to be levied for debt service and public building commission leases for 2026 are $3,200,828. This represents a 0.45 % decrease over the previous year.
IV. The total property taxes extended or abated for 2025 were $21,049,048. The estimated total property taxes to be levied for 2026 are $21,359,745. This represents a 1.48% 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 the Resolution as presented.
(Full motion - not necessary to be read)
I move to adopt a Resolution, entitled: A RESOLUTION DETERMINING THE 2026 TAX LEVY IN COMPLIANCE WITH THE TRUTH IN TAXATION LAW.