'Left Without Options,' City Seeks to Raise Property Tax

Submitted by the City of Lake Forest

Anticipating a shortfall in revenue from the State of Illinois, the City of Lake Forest is planning to budget a 2.93% increase in property taxes for 2016.

Because the State of Illinois has not yet approved its own budget, typically passed on July 1, the City is preparing for a potential drop in revenues from the State which could also be compounded by a proposed property tax freeze in future years.

The 2.93% increase means that for Lake Forest residents, owners of an $800,000 house can expect to pay $91 more in property taxes for City services in 2016 than in 2015.

The Lake Forest City Council discussed the proposed tax levy increase at its Nov. 9 budget workshop, where four alternatives were considered, and at the Nov. 16 City Council meeting. The subject will come back to the City Council at its Dec. 7 meeting for final consideration.

Alderman George Pandaleon, Chairman of the City’s Finance Committee, stated that “Springfield has suspended distribution of revenues due to the City, including motor fuel tax, use tax (a form of sales tax) and the E911 fund, amounting to $1 million annually. If Governor Rauner’s budget proposal is passed, the City stands to lose another $1 million per year in income tax revenues. Additionally, a proposed property tax freeze by the State will make matters worse. The City has been forced to take action now to deal with the anticipated shortfall from the State of Illinois to preserve vital services.”

The City of Lake Forest, by an ordinance passed as a result of a referendum on November 2, 2004, is a Home Rule jurisdiction and not currently subject to property tax limitations. However, the City has committed to keeping property taxes as low as possible without affecting the high level of services provided to residents. The City’s tax rate is the lowest on the North Shore and in Lake County, and the City’s Finance Director, Elizabeth Holleb, projects that Lake Forest’s ranking will not change based on the proposed tax increase.

Mayor Donald P. Schoenheider assures residents that “The City will continue to stay on top of this issue with the State and as always, is consistently looking at ways to reduce expenses.”