St. Charles property tax hike moves closer to approval

St. Charles homeowners may see a 3% increase in their property tax bills after city council members approved a preliminary estimate of the city's 2023 property tax levy at a Nov. 6 meeting.

The proposed increase equates to about $24 annually, or about $2 a month, for the owner of a home valued at $300,000, assuming there is no change to the home's assessed value.

The preliminary levy was passed in a 7-3 vote without discussion. Alderpersons David Pietryla, Bryan Wirball and Ron Silkaitis voted no.

The actual tax levy ordinance will be presented for approval at the Dec. 4, 2023, city council meeting following an official public hearing during that same meeting.

If approved, the increase will be reflected in residents' tax bills during the 2024 calendar year.

City Finance Director Bill Hannah presented the preliminary estimate to government operations committee members in October.

Hannah told committee members that revenue from property taxes comprises about 23% of the city's general fund, and the levy will provide funding for next year's budget.

One reason for the increase is the required city contributions to the police and firefighters' pension funds will be increasing by $294,481 and $270,120, respectively, for a total increase of $566,601 over last year.

The total annual debt service on the city's general obligation bonds for the 2023 levy year is $9,852,931. It is a decrease of 3.1% from the previous year and, combined with this year's estimated property tax levy of $14,612,813, gives the total estimated 2023 tax levy of $24,465,744.

For more information on St. Charles real estate taxes, visit the city's finance department webpage. To view details of the preliminary 2023 tax levy, see the agenda item from the Nov. 6 city council meeting.