'Substantially' Higher Elmhurst Tax Bills Expected

ELMHURST, IL – Elmhurst residents should expect to see "substantially" higher property tax bills next year, a school official said Tuesday.

At a meeting, Elmhurst School District 205 board member Jim Collins said the district's spending has outpaced inflation for years. That was offset by increases in new construction, which added to the city's tax base, he said.

But Collins noted that new construction slowed down in 2021. According to school figures, tax levy increases from new construction averaged 1.6 percent over the last decade. That number dropped to 0.9 percent last year.

With higher interest rates, fewer construction projects are expected, meaning smaller increases to the tax base, Collins said.

Under state law, public bodies can increase their tax levies with inflation up to 5 percent. Last year's inflation exceeded 8 percent. The levy can increase over 5 percent based on new construction.

"Huge property tax increases will take over what would be revenue that the taxpayer has not had to shell out directly," said Collins, who heads the board's finance committee. "Now, the taxpayer is going to see it on their tax bills... Our property taxpayers are going to see substantially higher tax bills if the school district taxes to the max."

The same thing may well happen with other local taxing bodies. Last year, the school district made up 72 percent of the Elmhurst property tax bill.

In reaction to Collins, board member Athena Arvanitis said using the word "substantial" is jarring for residents. She said the word means different things to different people.

She said it would be far better to provide numbers rather than adjectives.

Based on current figures, officials said, next year's property tax levy may increase by 6.1 percent, including the 5 percent maximum and the rate of new construction.

With that increase and other factors remaining the same, a resident who paid $10,000 in school property taxes this year would see that jump by $610 next year. (The 6.1 percent increase would apply only to the school portion of the tax bill; other public bodies make their own tax levy decisions.)

Board member Karen Stuefen said the school district must better manage its spending. Otherwise, she said, taxpayers will see their tax bills rise far more than they have traditionally.

Chris Whelton, assistant superintendent of finance, said the district is scrutinizing its spending, especially with personnel.

"We're trying to keep staffing at the same level as it is today," he said.