Council Proposes 7.31% Tax Hike

Property owners could pay 7.31 percent more real estate taxes next year in large part because of pension obligations imposed by the State of Illinois after the Highland Park City Council voted 5-2 at its meeting today at City Hall to allow itself to raise the property tax levy.

That vote sets the maximum amount the Council can increase the property tax levy for 2014. Its final vote on the issue is set Dec. 9.

If approved, the increase will mean a homeowner living in a $500,000 house will pay approximately $85 per year more than was required in 2013, according to Finance Director Nikki Larson. The increase is necessary to meet pension obligations imposed by Illinois as well as funding the Highland Park Public Library.

“Unlike the state, we’re not kicking the can down the road,” Mayor Nancy Rotering said. “This will go on year after year,” she added referring to the City’s portion of pension requirements. She made it clear the state must act on its ongoing pension shortfalls.

Councilmen Paul Frank and David Naftzger voted against the hike while Rotering was joined by Councilwomen Alyssa Knobel and Kim Stone along with Councilmen Tony Blumberg and Daniel Kaufman approving the measure.

At the same time the City conducted a public hearing on the 2014 budget. Larson explained how the budget was being balanced without using additional tax revenue before the public was given the opportunity to make comments. No one spoke.

The City is projecting operating expenses of $85,256,672 against projected revenue of $81,580,486. The difference will come from city reserves. “These are one-time capital expenditures,” Larson said explaining how the 2014 budget is technically balanced.

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