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 c...
Click here for full text