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Motion to Determine an Estimate of Taxes to be Levied for Tax Year 2026 in the Amount of $56,293,924 and Approve a Public Posting of Truth in Taxation Notice
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Introduction
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This is a Motion to determine a probable levy for the purpose of publicly noticing a Truth in Taxation hearing. The estimate of taxes to be levied for tax year 2026 and collected in 2027 is in the amount of $56,293,924, based on the preliminary Village Manager’s Proposed Budget for Fiscal Year 2027. This estimated amount will be included in the public notice.
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Recommended Action
Approve the Motion
Prior Board Action
The Village Board of Trustees conducts a Truth in Taxation hearing annually prior to adopting its annual budget and approving a levy. Last year’s budget process included Board approval of MOT 25-275 on November 11th, 2025, preceding public posting in the Wednesday Journal of the Truth in Taxation notice. The subsequent Truth in Taxation hearing took place on November 18th, 2025 in advance of adopting the budget for fiscal year 2026.
Background
This Motion is consistent with 35 ILCS 200/18-55 to 18-100, Illinois’ Truth in Taxation Law, which requires taxing districts to determine a probable levy and publicly disclose and hold a hearing if their proposed property-tax levy exceeds 105% of the previous year’s extension, with mandatory newspaper notice 7-14 days before the hearing and a 20-day levy-estimate requirement. The Village typically conducts a Truth in Taxation hearing regardless of whether its levy meets the 105% threshold established by State law. This year’s proposed direct levy for Village activities surpasses the threshold so the Village is required to follow the statutory process.
The Village Manager’s proposed budget for tax year 2026 (fiscal year 2027) includes a tax levy increase of $56,293,924, of which $43,058,924 contributes to the Village’s own direct levy. (The remaining amount is distributed outside of Village operations to the Library and SSA #1). This constitutes a proposed overall levy increase of 6.88% and a direct levy increase for the Village of 7.94%.
The proposed levy may be found in the Village Manager’s Proposed Fiscal Year 2027 Operating Budget in section “Property Tax Levy Summary” at this link: https://oakparkgov.openbook.questica.com/#/budget-book/FY2027ProposedBudget <https://oakparkgov.openbook.questica.com/>
Here is a summary of the estimated levy in the proposed budget:
|
Levy purpose |
FY2026 levy |
FY 2027 proposed |
Dollar increase |
Change |
|
Corporate |
$19,125,000 |
$20,333,000 |
$1,208,000 |
6.32% |
|
Debt service |
$5,016,897 |
$6,325,761 |
$1,308,864 |
26.09% |
|
Police pension |
$8,276,706 |
$8,621,459 |
$344,753 |
4.17% |
|
Fire pension |
$7,474,204 |
$7,778,704 |
$304,500 |
4.07% |
|
Village Direct Levy |
$39,892,807 |
$43,058,924 |
$3,166,117 |
7.94% |
|
Library |
$11,979,000 |
$12,460,000 |
$481,000 |
4.02% |
|
SSA #1 |
$800,000 |
$775,000 |
$(25,000) |
-3.13% |
|
Total Levy |
$52,671,807 |
$56,293,924 |
$3,622,117 |
6.88% |
Note that this full schedule includes a revised levy for the Library that was released after the Village’s proposed fy2027 budget. It is included here for the most up-to-date information; the amount will be reflected in the Village’s budget book when the budget is adopted and published.
In proceeding with this Motion, Village Trustees are not voting on the proposed levy itself, but rather approving the posting of a public notice with this information in the journal of record, in advance of the mandated Truth in Taxation hearing.
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. The public notice of the Truth in Taxation hearing must take place 7-14 days before the hearing. The levy is anticipated to be adopted in December.
Financial Impact
Passing this Motion provides staff with approval to post public notice of the preliminary property tax revenues recommended for FY27. This subsequently allows the Board of Trustees to hold a hearing to discuss and vote on the proposed tax levy prior to adopting next year’s budget.
Operations Impact
This requirement is necessary to conduct the statutorily-required Truth in Taxation public hearing. Proceeding with approval to post the notice with preliminary levy amounts will allow the Village to continue towards adoption of a final budget by mid-December.
DEI Impact
There is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item. It is a pre-requisite to conduct a public hearing on the tax levy, at which community input will be shared by Village residents.
Staff Recommendation
Approve the Motion.
Advantages:
• This action complies with Truth in Taxation requirement to determine a probable levy.
• This action allows for timely posting of the legally required Truth in Taxation hearing.
Disadvantages:
• There are no disadvantages to this action. A vote of approval applies only to moving forward with the Truth in Taxation hearing; discussion, community input, and a vote on the actual proposed levy amounts will take place at a subsequent Board meeting.
Alternatives
Trustees can vote instead to approve the public posting of the Truth in Taxation notice at a subsequent Board meeting.
Advantages:
• This action would give additional time for Trustees to review the proposed tax levy.
Disadvantages:
• This action would likely delay the Truth in Taxation hearing and subsequent adoption of the budget and approval of the levy.
Anticipated Future Actions
The proposed dates for related activities are:
• November 4: Determine probable levy and approve Motion to publish Truth in Taxation public notice
• November 4: Publish public notice in Wednesday Journal
• November 17: Hold Truth in Taxation hearing
• December 8: Adopt budget and approve levy for fiscal year 2027
Prepared By: Louis Hall-Makarewicz, Deputy CFO
Reviewed By: Kevin Bueso, CFO
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Proposed FY2027 Budget - Tax Levy Overview