Why Mount Prospect is proposing lowest tax levy in nearly a decade

Mount Prospect is expected to ask property taxpayers for a little less this year.

Finance Director Amit Thakkar told village board members Tuesday the proposed tax levy is the lowest in nearly 10 years.

The proposed $18.2 million levy, which will be collected next year, represents a 6.34% reduction from what was collected this year, $19.4 million. In 2015, the levy was $18.3 million.

If approved, the property tax burden for the owner of a $367,900 home could decrease from about $984 to roughly $918 on the village’s portion of the property tax bill, village officials said.

The village is able to provide tax abatements by increased reliance on other revenue sources, like sales taxes, officials said.

The village is abating $5.1 million in property taxes and using sales tax revenue to cover $2 million owed to police and fire pensions. Another $3.1 million is being spent on debt service, including bonds issued for the new police and fire headquarters.

Village officials are still forecasting ending the next fiscal year with more than $41 million in reserves.

Property tax is a small piece of the village’s $160.9 million revenue pie. Other revenue sources include water and sewer charges and sales tax.

The budget’s public hearing is slated for Nov. 6 before the board votes on it.