Waukegan City Council Approves $37.3M Tax Levy, No Increases

UPDATE: The Waukegan City Council has just approved a $37.3 million real estate tax levy for 2025, marking the sixth consecutive year without an increase in property taxes for city residents. This decision was unanimously agreed upon during a meeting at City Hall on Monday, ensuring that taxpayers will see no rise in the city’s portion of their payments when they receive tax bills from Lake County this spring.

Mayor Sam Cunningham emphasized the importance of early planning, stating, “We identified these things early on, and it has helped us to achieve a zero-levy increase for six years.” This proactive approach comes after the city approved a record $292 million budget in May, which was set against projected revenues of $262.9 million. To balance the budget, the city allocated $29.3 million from cash reserves, anticipating the tax levy would account for approximately 14.2% of total revenue.

Residents of Waukegan, where the average value of a three-bedroom home is around $240,000, can expect to pay approximately $4,469 annually in property taxes. However, Ald. Lynn Florian warns that while the city’s tax portion remains unchanged, individual tax bills may increase due to levies from other governmental entities such as the park district and school district. “Your tax bill may look different next year than it does this year,” Florian noted, urging residents to review their tax statements closely.

In a recent development, the Waukegan Community Unit School District 60 also maintained its property taxes flat for the past five years but has recently increased its real estate tax levy by 4.99% to sustain educational quality. Cunningham explained that depending on their location, Waukegan taxpayers might contribute to other school districts, further complicating their tax bills. “A lot of times, the city of Waukegan has gotten blamed for every tax increase that you see on your bill,” he stated, highlighting the need for clear communication around tax contributions.

Looking ahead, Mayor Cunningham expressed optimism about maintaining the tax levy level despite looming expenses. The city is considering significant projects, including the construction of a new police station and fire station, alongside potential legal liabilities from wrongful convictions. “All of this will play a role in our future obligations,” he cautioned.

The allocation of property tax revenue is specifically designated, according to a memo from retired interim finance director Don Schultz. Of the total revenue, approximately $4.87 million funds the Waukegan Public Library, while $6.75 million is earmarked for garbage collection. The majority of the funds, around $22.5 million, will support police, fire services, and pensions for the Illinois Municipal Retirement Fund, with remaining amounts directed to cover interest and principal on outstanding bonds.

As Waukegan residents prepare for their upcoming tax bills, the city’s commitment to maintaining stability in property taxes reflects a broader trend of fiscal responsibility amidst rising costs in other sectors. Stay tuned for further updates as these developments unfold.