The Chicago suburb’s decision to raise the levy will result in a 3.1 percent hike in the city’s portion of property tax bills, marking the first such increase in four years.
Seeing rising pension costs, a decline in state assistance, and a new state tax-collection fee, in 2018 the village plans to raise the property tax levy 4.9 percent and make a 1.2 percent cut to the village’s budgeted revenues, in addition to a 1.7 percent spending cut.
Despite increases in city contributions to both its police and fire pension funds, Normal, Illinois’, unfunded police and fire pension liabilities are growing.
Cities and villages across the state are raising taxes or implementing new ones for a variety of functions, from attracting a fast-food restaurant to catching up on rising pension costs.
Illinois universities are blaming the recent budget impasse for their declining enrollment and financial problems. But the problems in higher education started long before the budget fight, and are largely self-inflicted.
The new law is a step toward more fairness within Illinois’ police pension system, while offering certain police officers more control over their retirements.