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Motion to Approve an Estimate of Taxes to be Levied for Tax Year 2025 in the Amount of $52,297,928
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Introduction
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This is a motion to approve an estimate of taxes be to levied for Tax Year 2025 in the amount of $52,297,928.
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Recommended Action
Approve the motion.
Prior Board Action
The Board has taken the following prior action(s):
• On November 19th, 2024, the Village Board held a Truth in Taxation hearing for the 2024 Property Tax Levy (ID 24-549)
Background
The Tax Year 2025 (FY 26) property tax levy will increase to an estimated $52,297,928. This is a 4.98% increase from the previous year, where the total levy was $49,819,126. This posting is an estimate and may not be the final levy amount.
The Village portion, excluding the Oak Park Public Library, for the fiscal year 2025 (tax year 2024) year tax levy will increase 3.0% from the fiscal year 2024 levy (tax year 2023) extended levy. Including the Oak Park Public Library’s request, the proposed tax levy is a 3.06% increase from the FY 2024 (tax year 2023) extended levy.
Excluding the Library, the Village’s total levy for next year, as published in the Truth in Taxation notice, calls for a 3.0% increase. The Village’s total levy, including the Library, for FY24 (tax year 2023) was $48,144,455, and the estimated levy for FY25 (tax year 2024) was $49,617,539.
The following items account for the primary increases to the Village’s levy:
a) Police Pension Levy increase = $637,159
b) Fire Pension Levy increase = $660,561
c) Debt Service Levy increase = $10,604
d) Library Property Tax Levy Request = $575,000
e) Corporate Levy Increase = $595,478
It is important to note that the Oak Park Public Library has a separate and independent Board from that of the Village. The Village merely provides a service to the Library and levies the amount it requests under the Village’s levy ordinance. The combined recommended levy (for both Village and Library) results in an increase of $2,478,802 or 4.98%, over the prior year.
For additional information regarding Oak Park Public Library budgets, please refer to the following link on their website:
<https://www.oppl.org/about/budget/>
Timing Considerations
Per 35 ILCS 200/18-60 (Truth in Taxation), the Village must post an estimate of the property tax levy at least 20 days prior to the adoption of the final levy.
Budget Impact
Passing this estimate provides staff with an estimate of what property tax revenues will look like for FY26.
Staffing Impact
There is no staffing impact associated with this item. The item aligns with the department’s core service delivery.
DEI Impact
There is no DEI impact associated with this item.
Community Input
The Truth in Taxation Hearing and estimate of the property levy serve as notice prior to the approval of the property tax levy. Public notices have been in posted in local media as well.
Staff Recommendation
Approve the estimate.
Advantages:
• The estimate will be posted, ensuring the Board can pass the property tax levy in at least 20 days.
• Residents will understand what the property tax levy estimate looks like for FY26.
Disadvantages:
• There are no disadvantages to this action.
Alternatives
The Board can reject the motion.
Advantages:
• Staff will return at a future date with a revised estimate.
Disadvantages:
• Delaying the estimate subsequently delays when the property tax levy can be approved.
Anticipated Future Actions
Staff will return to the Village Board with a motion to pass the property tax levy in a future meeting.
Prepared By: Donna M. Gayden, Interim Chief Financial Officer
Reviewed By: Ahmad M. Zayyad, Deputy Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Truth in Taxation Presentation