Mundelein is moving forward with a tax levy for the upcoming fiscal year that, if approved in December, will keep the total levy amount the same as the current one.
As a result, a property valued at $250,000 can expect to see a $10 decrease in in the village’s portion of property taxes, officials said. Assessments would be due in 2022.
Village trustees met Nov. 8 to discuss the options for the new tax levy, and the total amount the village plans to ask tax payers for is a little less than $14.3 million — the same amount as the current levy. Officials are expected to vote on the levy at the Dec. 13 Village Board meeting.
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Despite the levy amount staying the same, the village is expected to shift some of the funds from it that are used to pay bills. The Social Security pension fund is expected to receive an additional $25,000 and the police pension will receive about $75,000 more. These funds are being pulled from the fire pension, which is budgeted to get $100,000 less in contributions compared to the current budget, according to village budget documents.
At the Monday night Village Board meeting, some trustees said they chose this option because it provides the most funding to pensions, which is something Trustee Tim Wilson said was necessary. Trustee Jenny Ross agreed. The village is required to have 90% of its police and fire pensions funded by 2040. Currently, the police pension is 55% funded and the fire pension is 64% funded, officials said.
“I just don’t see any other way around it,” Wilson said of moving money around to fund the pensions. “It’s not going away. It seems like the prudent thing to do.”
Trustee Kerston Russell gave village staff credit for keeping the village’s levy the same, particularly as the prices of goods and services are rising.
“In a time of serious issues of goods … the fact that our village staff has held the line and put forward a budget that is flat … is pretty impressive,” he said.
While the village’s fiscal year runs May 1 to April 30, the amount of the property tax levy for the upcoming fiscal year must be submitted to the county treasurer by the end of December of the current fiscal year.
The village’s reserve funds were also brought up during Nov. 8 meeting. Since 2012 village reserves have dropped, going from 88% then to 39% in 2021. Popular during budget discussions, this topic also came up earlier in the year when the village considered a utility tax. A portion of that revenue is designated to increasing the village’s reserves, which officials are aiming to have at 50% — or enough money saved to pay six months worth of expenditures.
“It’s been the mission of the board and staff to get that closer to the 50% funding range,” Village Administrator Eric Guenther said.