Mundelein homeowners likely will see the amount of taxes they pay to the village increase next year even though the tax rate is expected to drop.
The village board on Monday moved forward with a plan to collect about $16.8 million in property tax revenue in 2025. Formal approval is expected Dec. 9.
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.
The money goes to fund village salaries and services as well as pensions for municipal employees.
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.
The tentative plan calls for the village’s tax rate drop to $1.37 per $100 of equalized assessed valuation, which should result in a $66 tax increase to the village for a typical homeowner.
That proposal was one of three presented to trustees for consideration. The two others would’ve dropped the rate further, which in one scenario would’ve resulted in a slight tax decrease for the typical property owner.
Village officials have said the proposed levy collection 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.
After an occasionally heated discussion during a committee-of-the-whole meeting Monday night at village hall, five trustees supported the proposal. Trustee Robin Meier opposed it.
Trustee Erich Schwenk, who leads the village’s finance committee, said no trustee looks forward to raising taxes, noting that “it’s not a good thing to do to your neighbor.” But the village has an obligation to fund pensions, he said.
Trustee Jenny Ross said she backs the plan because it’s important for the village to keep up with cost-of-living increases. Trustee Kara Lambert said the village must maintain services and staff.
