Palatine plans to end levy for debt repayment in next budget

When Palatine’s village council members look at the proposed 2025 budget Monday, they will notice something missing: a levy to pay off debt.

The proposed budget is the first in more than a century that does not include a property tax levy for debt service, Village Manager Reid Ottesen said in his budget message.

“Through the efforts of the village council and staff over the past decade, we lived within our means and maintained a focus on eliminating the debt that has impacted our financial flexibility for decades,” he said.

At the end of 2010, the village was carrying more than $122 million in outstanding debt. That amount will shrink to about $24 million at the end of 2025.

Officials expect the village to be debt free by the end of 2029.

The roughly $158 million budget for 2025 includes more than $90 million for operation and about $65 million for personnel.

The village also plans to spend more than $27 million in capital investments, including $5 million for elevated water storage near Harper College.

The proposed budget will not increase the property tax levy, Ottesen said. Over the past 14 years, the levy has grown only 2.45%.

The budget reflects changes in its operations, including restructuring of the police department. The department is shifting toward more neighborhood-based policing.

The plan calls for a new division with a deputy chief for planning and community engagement, as well as an administrative sergeant to better integrate social workers. The new positions and realignment will cost more than $376,000.

On the revenue side, 2025 will be the first full year of taxes from the cannabis dispensary on the village’s north side. The village also will see dollars from its sales tax-sharing agreement with Deer Park, which will receive access to Lake Michigan water in return.

The village council will hold a public hearing on Nov. 18, with a final vote expected Dec. 2.