Why Mundelein’s property tax haul could increase next year

Mundelein officials are considering decreasing the village’s property tax rate but increasing the amount of property taxes they’ll collect in the next fiscal year.

The total amount of taxes might increase despite the rate reduction because property values are expected to rise, Finance Director Linda Miller said in a memo to trustees and Mayor Steve Lentz.

The village board will meet Monday night to discuss options. That session is set for 6 p.m. at village hall, 300 Plaza Circle. It will be livestreamed at mundelein.org.

As is the case with most Illinois communities, property taxes are Mundelein’s largest revenue source. The village is collecting about $16 million in such taxes this year for the 2023 fiscal year, which ended April 30. Taxes are collected the year following the assessment.

Three financial options will be debated Monday night. The amount of money that would be collected for various village funds, such as the pension accounts for police officers, firefighters and other municipal employees, differs from proposal to proposal.

The village’s current property tax rate is $1.44 per $100 of equalized assessed valuation. The owner of a typical house worth $300,000 paid about $1,444 in taxes to the village.

One option being considered would drop the tax rate to $1.37 per $100 of equalized assessed valuation, resulting in a $66 tax increase to the village for a typical homeowner.

A second option would drop the rate to $1.34 per $100 of equalized assessed valuation, which would result in a $40 tax increase to the village.

The third option would drop the rate to $1.31 per $100 of equalized assessed valuation, which would result in a $1 tax decrease to the village for a typical homeowner.

Officials are recommending the board approve the first option. According to the memo, it will allow for sufficient contributions to the public safety pensions and set aside enough money to cover increases in wages and the costs of services and supplies.

The discussion is coming less than a week after Mundelein High School District 120 voters approved a plan to borrow nearly $150 million to help fund about $200 million in facility improvements. The owner of a $300,000 house will pay an additional $414 per year in taxes to District 120 the first year, officials have said.

The village board is expected to approve a tax levy Dec. 9.