Naperville proposes increasing tax rate

Naperville again is proposing a roughly 2-cent increase in its property tax rate with the intent to abate an undetermined amount in the spring.

The proposed rate of 73.55 cents per $100 of equalized assessed value is meant to be a compromise between the proposed 5 percent flat dollar rate of 75.44 cents and keeping the rate flat at 71.67 cents.

Councilmen agreed that halfway point would give the city some flexibility in the months leading up to the new budget year, while also holding the city's “feet to the fire” to come up with more cost reductions.

“I'm afraid if we have a flat dollar amount, that's what we'll work toward,” Councilman Robert Fieseler said. “I would be inclined to say let's set a target that challenges us to meet it.”

The city would face a budget gap of $4.1 million if the tax rate remains the same. The proposed 2.5 percent tax rate increase would shrink that budget gap to $2.85 million.

Either way, residents can expect to pay slightly less on the city's portion of their property tax bills. Even if the rate remains unchanged, the city's portion of tax bills likely will decrease as a result of a 5 percent decrease in assessed values.

Councilman Dick Furstenau suggested the compromise.

“With all of the differences we don't know yet, this total gap of $4.1 million becomes very daunting if we don't know what's going to happen,” he said. “This gives us a little leeway, and I think we keep the shackles on to make sure we have everybody with their heads in the game to keep costs low.”

At 71.66 cents, the owner of a $380,000 home pays about $872 for the city's portion of their property tax bill. If the 2-cent increase goes into effect, they would pay roughly $850 for the year, according to Karen DeAngelis, director of finance.

“We could make it (80 cents) and abate it. It's an irrelevant number,” said Councilman Kenn Miller, suggesting the levy be set at an amount equivalent to last year's flat dollar amount and then abate to a lower level. “As far as the levy is concerned, let's be realistic and then we've got plenty of room to work.”

Last year, the council set a rate of 73.67 cents and abated to 71.67 cents, the same rate as in years past.

The council will have a public hearing on the proposed levy at its Nov. 16 meeting, and hopes to approve the levy ordinance at its Dec. 7 meeting.