City property taxes may inch up in Naperville

Naperville councilmen lowered the city's projected property tax rate back to current levels as promised Monday, keeping it virtually flat for the third straight year.

Taxpayers still may see a slight increase on the city portion of their tax bills, however, as a result of an increase in property values.

The city council voted in December to approve a $52 million property tax levy that would result in a tax rate of 73.67 cents per $100 of equalized assessed value - 2 cents higher than the current year. The extra money was intended as a cushion in case the economy worsened more than expected, but councilmen made it clear they intended to return the rate to its current level of 71.67 cents before tax bills hit mailboxes.

Monday's vote did just that. Councilmen approved the abatement 7-0, with Doug Krause and Grant Wehrli absent.

The rate of 71.67 cents means the owner of a $400,000 home can expect to pay just less than $920 on the city portion of their property tax bill.

Despite the tax rate staying flat, bills still may increase because the value of existing property in Naperville went up 0.34 percent. For tax purposes, individual property values are figured based on a weighted three-year average.

In total, property value in Naperville rose 1.34 percent, including new construction.

"I've always said the whole focus on the tax rate was a fallacious one because to the extent we congratulate ourselves for holding the line or having it go down, essentially whole dollars keep going up," Councilman Robert Fieseler said.

Next year, property values are expected to worsen and cities are bracing for the effect that will have on their budgets.

"It doesn't get any easier next year," Councilman Richard Furstenau said. "In fact, it will get tougher."

He urged residents, city employees and unions to be prepared to cooperate to help the city balance its budget.

For the past six months, the city has been struggling to fill what was once a $14.1 million budget hole for the fiscal year that starts May 1.

Earlier this year, it eliminated 49 employee positions, including 22 that were filled and 27 that were vacant. The city also has cut spending in every department, will boost its motor fuel tax by 2 cents per gallon and will implement a new $2 monthly fee for garbage collection. It also will divert $750,000 that normally goes toward cultural grants into the general fund.