St. Charles homeowners can expect small hike in city taxes
St. Charles residents likely will see a small increase in their property taxes next year as a result of a 3.4% hike to the city portion of the tax bill.
The city council this week approved a preliminary $24.4 million property tax levy for 2022.
The owner of a house with a fair cash value of $300,000 would pay an additional $24 a year, assuming no change in assessed value, Finance Director Bill Hannah said. Kane County estimates the equalized assessed valuation for the city will increase by about 6%.
One of the main reasons for the hike is the required increase in the city's contributions to police and fire pension funds, Hannah said.
Third Ward Alderman Paul Lencioni voiced concerns about rising pension costs.
"We must find ways to get these pension costs under control," he said. "We have to have a plan at some point. I support what you've done. I think it is a noble effort. But it won't do in the future."
Hannah said there are things that can discussed in the long term.
"Your point is well-taken," he said.
Property taxes constitute about 25% of the city's budgeted revenue for the general fund and are a key source for funding core city services such as police and fire protection and public works.
Last year, the city increased the operating levy from the previous year by 4.99%.
"This helped the city fund its operating budget for FY 2022-23 and pass a balanced general fund budget," Hannah said. "The city has also benefited from increases in sales tax and other tax revenues over the past year, which has improved the city's short-term fiscal outlook."