River Forest trustees on Nov. 18 voted unanimously to accept the estimate of the 2024 corporate property tax levy of $9.7 million, an increase of 3%.
Officials are expected to formally approve the levy request at the Dec. 16 Village Board meeting.
The 2024 levy request of $9,763,035 is slightly higher than the 2023 extended levy of $9,517,618.
Illinois tax-cap laws limit the tax levy increases for non-home rule municipalities such as River Forest to 5% or the level of the consumer price index (CPI), whichever is lower. For 2023, the CPI is 3.4%.
“I think a 3% increase is appropriate,” village President Cathy Adduci said, adding that she felt staff members did “a great job.”
Village Administrator Matt Walsh said that property taxes on new construction are not included in the levy valuation. That figure is estimated at $2 million as determined by building permits issued.
“By not including the new construction dollars, River Forest property taxpayers will benefit as a whole,” he said.
Calendar year 2023 was a reassessment year for the village and properties with home improvement exemptions that expired during the prior three years were picked up as new property, Rosie McAdams, finance director, explained in a memo to officials. The reassessment shows that the total assessed value of River Forest Township grew 31%, she added.
“Although the impact on individual homeowners will vary, the average increase in the corporate levy for individual homeowners should be about 3.0%,” McAdams said in the memo.
The debt service amount of $302,546 is the full amount of the 2024 available Debt Service Extension Base, which is the amount the village is authorized to levy for principal and interest payments without a referendum, according to McAdams. She noted that the 2024 levy includes the 2024 series general obligation bonds that were issued in early 2024 for public works projects including street improvements.
McAdams also explained that a change in methodology will impact future police and fire pension benefit estimates.
“This year’s actuarial reports include a change in methodology based on a programming change made by the actuarial consultant,” she said. “Both pension funds have agreed to smooth the reduction in contributions over a five-year period which actually increases the annual contribution.”
This is year three of the five of the smoothing.
The tax levy request also highlights just how large a part police and fire pensions play in the village’s fiscal picture. The village is requesting to levy total taxes of a little more than $3.7 million to fund the village’s police and fire pension obligations, which are based on actuarial reports prepared by the village’s actuary, Todd Schroeder from Lauterbach & Amen. The 2024 property tax levy for the police pension fund is $2,045,958 and, for the fire pension fund, $1,757,300.
The village board also approved the annual tax levy of $1,674,539 for the River Forest Public Library, an increase from $1,595,644. The library falls under the auspices of the village but is governed separately.
The current fiscal year runs from May 1, 2024, to April 30, 2025. The taxes from the 2024 levy are collected in 2025.