CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Option A: Receive the estimated 2025 property tax levy for the City of Naperville, including the Naperville Public Library, totaling $59,734,178; or
Option B: Receive the estimated 2025 property tax levy for the City of Naperville, including the Naperville Public Library, totaling $60,694,537, and direct staff to publish notice for a truth-in-taxation hearing on December 16, 2025
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director of Finance
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Pursuant to 35 ILCS 200/18-60, the City Council is to determine the amounts of money, exclusive of election costs, estimated to be necessary to be raised by taxation upon the taxable property in the City. The proposed estimate of levy can then be considered for final approval by City Council at the December 16, 2025 City Council meeting. This satisfies the minimum 20 days requirement between the estimate of the levy and the adoption of the levy.
By law, the City is required to approve and file with the DuPage and Will County clerks a tax levy ordinance by the last Tuesday of December if the municipality chooses to raise revenue through real estate taxes. Several statutorily required steps must occur prior to filing the levy. These steps include:
• Make the tentative annual budget available for public inspection and publish notice of a public hearing.
• Hold a public hearing on the tentative annual budget and pass an ordinance approving the annual budget.
• File approved budget with county clerks within 30 days of approval, but before tax levy ordinance is filed.
• Estimate the amount of taxes to be levied at least 20 days prior to approval.
• Determine whether a truth-in-taxation hearing is required.
• Publish notification in the newspaper of the Truth-in-Taxation hearing not less than seven days and no more than 14 days prior to the date of the Truth-in-Taxation hearing, if required.
• Hold the truth-in-taxation hearing, if required, and adopt the levy ordinance.
DISCUSSION:
Per Illinois state statute, municipalities are required to publish notice for a truth-in-taxation hearing if the amount of the requested aggregate levy is 105% of the prior year’s extension or more. The aggregate levy is defined as the combination of the annual corporate levy and all other special-purpose levies. The aggregate levy does not include debt service levies and levies made for the purpose of paying amounts due under public building commission leases. This year, two property tax levy estimates are being presented. Option A outlines the property tax levy estimate without the addition of the MCIT unit. When comparing the 2024 extension to the 2025 aggregate levy, the levy in Option A increases by 4.7%. As a result, the City would not be required to provide notice and hold a truth-in-taxation hearing. Option B reflects a 2025 property tax levy estimate that includes the addition of an MCIT unit consisting of one MCIT Sergeant and five MCIT Officers. When comparing the 2025 extension to the 2025 aggregate levy, the levy in Option B increases by 7.5%. As a result, if Council moved forward with Option B, the City would be required to provide notice and hold a truth-in-taxation hearing.
|
Purpose |
2024 Final Extension |
2025 Option A Estimated Levy |
2025 Option B Estimated Levy |
Option A % Change |
Option B % Change |
|
General Corporate |
8,176,157 |
9,250,000 |
10,210,359 |
13.1% |
24.9% |
|
IMRF |
2,251,814 |
2,553,694 |
2,553,694 |
13.4% |
13.4% |
|
Firefighters Pension |
10,969,684 |
10,914,619 |
10,914,619 |
-0.5% |
-0.5% |
|
Police Pension |
8,928,355 |
9,136,560 |
9,136,560 |
2.3% |
2.3% |
|
Naper Settlement |
3,892,142 |
3,994,682 |
3,994,682 |
2.6% |
2.6% |
|
Aggregate Refunds |
38,961 |
- |
- |
- |
- |
|
City Subtotal |
$34,257,113 |
$35,849,555 |
$36,809,914 |
4.7% |
7.5% |
The City also levies property taxes for the Naperville Public Library. The comparison of the 2024 final extension and the 2025 estimated levy associated with the library is outlined in the chart below. The library’s portion of the property tax levy would remain the same in both Options A and B.
|
Purpose |
2024 Final Extension |
2025 Estimated Levy |
% Change |
|
Library |
17,126,873 |
17,818,697 |
4.0% |
|
Aggregate Refunds |
19,480 |
- |
- |
|
Library Subtotal |
$17,146,353 |
$17,818,697 |
3.9% |
The table below outlines the total 2025 aggregate levy estimate for both Options A & B. With the library included, the total year-over-year increase for Option A remains under the truth-in-taxation threshold at 4.4%, while Option B exceeds it at 6.3%.
|
|
2024 Final Extension |
2025 Option A |
2025 Option B |
Option A % Change |
Option B % Change |
|
Grand Total |
$51,403,466 |
$53,668,252 |
$54,628,611 |
4.4% |
6.3% |
To provide a more accurate comparison of the year-over-year change in property tax, the chart below compares the final 2024 property tax extension to the estimated 2025 property tax levy with debt service abatements, which are not included in the truth-in-taxation requirements by statute. Thus, the following information is for illustrative purposes only.
Option A totals $59,734,178 and is what staff estimates is needed to support the proposed 2026 Annual Budget without the addition of the MCIT unit. This total represents the full amount to be levied, after debt service abatements, and represents a 1.5% increase from the 2024 extension and is projected to result in an extended rate of 0.5506, assuming EAV growth of 10%.
Option B totals $60,694,537 and is what staff estimates is needed to support the proposed 2026 Annual Budget with the addition of an MCIT unit consisting of one MCIT Sergeant and five MCIT Officers. This total represents the full amount to be levied, after debt service abatements, and represents a 3.2% increase over the 2024 extension. Option B has a projected rate of 0.5595, assuming EAV growth of 10%. Option B utilizes the highest cost option for the addition of MCIT for the purposes of presenting the highest levy option; however, any of the MCIT options would require a truth-in-taxation hearing.
The final 2025 extension and tax rate will be determined once the final equalized assessed valuation (EAV) has been determined by both DuPage and Will counties.
|
Purpose |
2024 Final Extension |
2025 Option A Estimated Levy |
2025 Option B Estimated Levy |
Option A % Change |
Option B % Change |
|
General Corporate |
8,176,157 |
9,250,000 |
10,210,359 |
13.1% |
24.9% |
|
Debt Service |
7,461,451 |
14,566,107 |
14,566,107 |
-18.7% |
-18.7% |
|
Debt Service Abatements |
- |
(8,500,181) |
(8,500,181) |
|
|
|
IMRF |
2,251,814 |
2,553,694 |
2,553,694 |
13.4% |
13.4% |
|
Firefighters Pension |
10,969,684 |
10,914,619 |
10,914,619 |
-0.5% |
-0.5% |
|
Police Pension |
8,928,355 |
9,136,560 |
9,136,560 |
2.3% |
2.3% |
|
Naper Settlement |
3,892,142 |
3,994,682 |
3,994,682 |
2.6% |
2.6% |
|
Aggregate Refunds |
38,961 |
- |
- |
- |
- |
|
Naperville Public Library |
17,146,353 |
17,818,697 |
17,818,697 |
3.9% |
3.9% |
|
Total Levy |
$58,864,917 |
$59,734,178 |
$60,694,537 |
1.5% |
3.2% |
The estimated 2025 property tax levy values shown in the preceding tables are derived from a variety of sources, including:
General Corporate
In Option A, the general corporate portion of the property taxes is $9,250,000, which represents an increase of $1,073,843, or 13.1% from the 2024 extension. In Option B, the general corporate portion of the property taxes is $10,210,359, which represents an increase of $2,034,201 or 24.9% from the 2024 extension. This portion of the levy is utilized to support City operations. As costs rise, the burden that is put on that portion of the property tax levy is greater. The addition of the MCIT unit is reflected in the increases seen in Option B.
Debt Service Levy
The debt service value is based on the City’s actual annual debt service requirements for 2025 of $14,566,107, which represents a 95.22% increase from the debt service amount extended for 2024. However, when including planned abatements for the utilities and other funding sources, this amount totals $6,065,926, which is a decrease of 18.7% from the 2024 extension.
IMRF Pension Levy
The portion allocated to the Illinois Municipal Retirement Fund (IMRF) is based on the actuarially calculated percentage given to the City by IMRF. The rate increases from 7.06% in 2025 to 7.80% in 2026. The 2025 levy amount totals $2,553,694, a 13.4% increase from the prior year, and accounts for the General Fund portion of IMRF contributions.
Public Safety Pension Levy
Per the 2025 actuarial valuation report, the required contributions to the Fire pension decrease by $55,065, or 0.5%, and the Police pension increases by $208,205, or 2.3%. The total required public safety pension contributions amount is $20,051,179. The Food and Beverage Tax funding towards public safety pensions is an additional $1,748,076.
Naper Settlement Levy Request
The Naper Settlement portion is based on the request made by the Naperville Heritage Society. The Settlement receives more than 70% of its annual funding through property taxes. The Heritage Society requested a levy of $3,994,682, an increase of 2.6% from the prior year’s levy.
Naperville Library Levy Request
The Library portion is based on the request made by the Naperville Public Library Board. The Naperville Public Library is more than 95% funded by property taxes. The Library Board requested that the City Council approve a levy of $17,818,697, an increase of 3.9% from the prior year’s levy.
FISCAL IMPACT:
This agenda item estimates the 2025 property tax levy for purposes of determining if a truth-in-taxation notice and public hearing are required. A formal request to approve the 2025 property tax levy will be presented on December 16, 2025.