Buffalo Grove approves 1.9% hike in tax levy, 2026 budget

The Buffalo Grove village board this week approved a $17.4 million property tax levy, a 1.9% increase from a year ago and the first levy hike in five years.

Village Finance Director Chris Black said the increase is driven by the rising cost of funding police and fire pensions, which is up a combined $325,638, to about $6.1 million.

“Much of the increase is based on the updated assumptions by our actuaries, which is probably about a once-in-a-decade occurrence,” Black said.

Despite the levy increase, Trustee Joanne Johnson said individual tax rates should not rise significantly. Some will remain stable or even decrease, she said.

“The reason for that is because the total taxable value of property in Buffalo Grove has grown,” Johnson added.

The board also approved about $5.6 million in property tax abatements, using alternative revenue sources to pay down debt service on five outstanding bond issues. Bonds issued for Fire Stations 25 and 26 and street improvements are being included in the property tax levy for the first time.

The board also approved a 2026 budget that calls for $143.9 million in spending and $137.9 million in revenues. The $27.7 million difference comes from capital projects that will be funded through grants, bond proceeds and reserves.

“Staff has done this remarkable job of not increasing costs to residents … despite all the things that put pressure on a budget,” Trustee David Weidenfeld said.