St. Charles freezes property tax levy for seventh year

Assuming no major swings in their property value, St. Charles residents won't see any change in the amount of property taxes they pay to the city in 2015. Aldermen unanimously approved a frozen tax levy for city operations Monday night for the seventh consecutive year.

This year, the owner of a $300,000 home paid about $928 in property taxes to the city. The overall equalized assessed value of property in the city will increase by about 3 percent next year. Assuming that $300,000 home also increases by about 3 percent, making it a $309,000 home, that property owner will once again pay about $928 in taxes to the city next year.

All told, the city will collect about $12 million in property taxes to fund the day-to-day operations of the municipality. The city also has a debt service levy to pay off bonds. The debt to be paid next year totals about $8 million. However, city officials traditionally abate that levy every year. That leaves the $8 million to be paid from nontax revenue sources the city receives and $12 million as the city's true property tax levy.

Keeping the levy frozen next year will involve some hefty internal financial juggling. That's because the city's fire and police pension costs are set to increase by $581,000 next year. That's a 21 percent jump. An update to the state's mortality tables to reflect the longer life spans of fire and police personnel is responsible for the increase. However, the $3.31 million total pension liability will be paid out of the $12 million operations levy. That means less money for other operations in the city next year. City staff will identify which line items to shift the $581,000 from during the budget process.

Mayor Ray Rogina placed special emphasis on the percentage of the local property tax bill the city represents during his comments. He pointed out the city is less than 10 percent of the local property tax bill. Meanwhile, St. Charles Unit District 303 is responsible for about 63 percent of the tax bill. Rogina pointed out the difference, tongue-in-cheek, for the benefit of an audience composed mostly of St. Charles East High School students.

None of the students or other audience members had any questions or objections to the levy when given the chance to comment.

City Finance Director Chris Minick estimated the ongoing property tax levy freeze has resulted in ongoing savings for city residents since the freeze began in 2009. A resident who owned a home valued at $300,000 in 2009 saved about $339 during the past seven years as a result of the freeze, Minick said.