Despite the possibility of a slight increase in property taxes in 2025, no Oak Park residents spoke or submitted comments for the public hearing regarding the proposed tax levy Tuesday.
Higher taxes and no complaints? It’s unclear whether that’s due to public buy-in of a tax levy increase, a lack of awareness of the hearing or something else entirely.
If trustees approve the proposed total tax levy increase of about 3% for the next year, including an increase of 3.5% for the corporate levy, Interim Chief Financial Officer Donna Gayden estimated the increase in property taxes will be about $48 per household.
The board is considering a gradual increase over the next few years, rather than a dramatic increase. That’s to help make up for when the levy increase was zero, in 2023. Because the levy increase was zero that year, the village gets $1 million less in revenue each subsequent year, Gayden previously told the board.
The tax levy helps the village fund its general operations, debt service payments and contributions to the police and fire pensions, according to village officials.
Gayden explained that the village is not losing any services right now because of when the levy was zero. But if the levy doesn’t increase, and debt goes up, too, trustees might have to pull funds from the fund balance, raise fees, or increase the levy even more. She recommends increasing the levy in small amounts over time to even that annual $1 million loss out.
“In two, three years, we’re going to be at a point where we will either have to levy a lot more in order to maintain the level of service that we have or we can make incremental, small increases over the next two or three years,” Trustee Cory Wesley said, adding that he does not want to see any decrease in village services.
And debt will likely go up in the next few years, as the village works to fund its plan to remodel Village Hall and build a new police station, an endeavor last estimated to cost between $132 million and $138.3 million.
Another reason small increases over time are preferable to a large increase is because many residents live on a fixed income, Gayden pointed out. If a tax levy increases or decreases quickly and drastically from year to year it can be difficult for individuals or families trying to stick to a budget.
A public hearing is required when a tax levy increase is 5% or more. Oak Park’s proposed increase isn’t that high, but the village held a “truth in taxation” hearing anyway for transparency.
But no public commenters spoke at the meeting.
The proposed levy increase is also due to increases in the police pension, of $294,832, in the fire pension, of $357,330, and in debt services, of $664,082.
The proposed tax levy increase is expected to cover additional 2025 budget expenses, Gayden said. That includes items added back to the capital improvement plan, such as traffic signal retiming efforts and the addition of a left turn signal at Garfield and Oak Park avenues, as well as community-focused initiatives proposed by the Oak Park River Forest Chamber of Commerce.
A majority of trustees were in favor of raising the tax levy slowly and therefore gradually increasing the impact on residents’ taxes rather than needing a big increase later that could shock local taxpayers.
The village board is expected to approve a final budget at its Dec. 3 meeting.
