Flat Tax Levy For City Of Elmhurst

ELMHURST, IL – Elmhurst is taking a different path from the many area public bodies that are raising their property tax levies to the maximum.

On Monday, the City Council voted unanimously to keep the annual tax levy, which includes the library, the same as the previous year – $19.9 million.

That levy would be spread out among a community with a growing tax base, thanks to new construction.

Because of the bigger tax base, residents are expected to see their city property taxes take a dip next year.

According to the city, the owner of a $470,000 house, about the median in Elmhurst, will see a city tax bill of $719 in 2023, compared with $728 this year.

Because of inflation of more than 7 percent, public bodies were allowed this year to raise their property tax levies to the maximum of 5 percent under state law.

In Illinois, a municipality takes a relatively small part of the property tax bill, while schools make up most of it. For instance, in Elmhurst, 70 percent of property taxes go to local schools.

Meanwhile, the city of Elmhurst, along with the library, make up 11 percent of the tax bill. Nearly half of that money goes to police and fire pensions.

Schools are heavily dependent on property taxes. In Elmhurst, property taxes make up 80 percent of the local district's income. (The district is increasing its tax levy by 5 percent next year.)

Cities, by contrast, have access to other income sources, including sales taxes, state income taxes, fines, fees and gas taxes, among others.

Still, the fact that Elmhurst kept its levy the same is significant, given recent inflation. Burr Ridge and Darien also recently decided to keep their levies flat. However, La Grange is increasing its levy by 4 percent.

"This is such a great story," Alderman Bob Dunn said at Monday's council meeting. "We haven't gotten here by luck. The City Council is willing to be creative in fostering development for the property tax rolls."

He said it's been a repetitive story that other towns are increasing their levies by 4 or 5 percent this year.

"To keep ours flat is a testament to what's going on in Elmhurst in general and specifically what the city is doing," Dunn said.

Alderwoman Noel Talluto said that if the city increased the levy by 5 percent, that would require $664,000 more from taxpayers next year. She credited growth in the tax base with the ability to keep the levy flat.

At the same time, Talluto noted the city faced a major financial challenge ahead – a projected shortfall in the city's stormwater account. For months, officials have looked at ways to pay off coming debt for flood projects. One way is to impose a stormwater fee on property owners.

The next City Council election is in April.