St. Charles proposes first tax levy increase in 9 years

St. Charles could raise its property tax levy for the first time in nine years, though city officials say they are committed to maintaining the existing tax rate.

The city plans to take advantage of an estimated 4 percent growth in taxable property value by proportionately increasing the 2018 operating levy, Finance Director Chris Minick said. The move would put extra money in the city's coffers each year while keeping the tax rate steady at roughly 85 cents per $100 of equalized assessed value.

Rising operating costs and a handful of capital projects have prompted officials to reevaluate St. Charles' revenue structure the past several months. After keeping the levy frozen since 2009, aldermen asked staff members to explore an increase that would account for new development and improved real estate market conditions, Minick said.

The city has proposed collecting $12.54 million in property taxes for 2018 - a $482,059, or 4 percent, increase over the previous year. Should the city's equalized assessed value change, the levy amount could be adjusted to ensure the tax rate remains the same, Minick told the city council last week.

The owner of a home with a market value of $300,000 would pay an estimated $34 more per year, Minick said, assuming that property also experiences a 4 percent increase in taxable value.

The additional tax revenue could help the city fund major projects such as constructing a new police station, making improvements to the 7th Avenue Creek corridor, and enhancing the recreational opportunities along the Fox River, Minick said.

Aldermen also recently approved implementing a new gasoline tax and increasing St. Charles' alcohol and hotel tax rates to help fill an anticipated budget shortfall in future years.

"We've had an increase, quite frankly, in operations and capital expenses," Minick said. "The big impetus is some of the significant capital expenditures the city has undertaken and is looking to undertake in the next couple years."

A public hearing is expected to take place next month, after which the city council will vote on the levy ordinance. A presentation on the preliminary levy estimate can be found on the city's website at www.stcharlesil.gov.