Rockford City Council’s proposed $214.2M budget has no property tax increase
By Kevin Haas
Rock River Current
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ROCKFORD — City Council members on Monday got their first look at a proposed $214.2 million operating budget for 2024 that calls for an 11% increase in spending without any property tax increase.
Expenses in the proposed budget increase $21.4 million largely due to pension contributions, salaries, equipment expenses and inflationary increases in contractual services, according to a presentation by Carrie Hagerty, the city’s finance director.
The budget calls for the city to leave its property tax levy unchanged, meaning it would collect a total of about $47.7 million again in 2024. The city legally could have collected an additional $2.5 million in property taxes, Hagerty said.
“Under my administration, this is the seventh year we are proposing no property tax increases for our residents,” Mayor Tom McNamara said in a news release. “It also marks the 11th year in a row with no property tax increase. I’m proud that we are living within our means, while still providing outstanding service to our residents.”
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The proposed budget is balanced with revenue projections also increasing, Hagerty showed Monday. The increases in revenue are expected to come from income taxes, collections from ambulance fees, as well as small increases in revenue from sales and use taxes. Last year, the city banked more money than expected when income tax revenue was higher than forecasted due to a better-than-expected economic recovery from the pandemic.
Those increases also mean that property taxes now make up a smaller portion of the city’s revenue.
“As we’ve continued to hold the line on levy increases: In 2017 property taxes were 38% of our total budget, they’ve fallen to 22% of our general fund operating revenue,” Hagerty said.
The city is spending an additional $4.2 million next year to meet its state-mandated pension obligations. That brings the city’s total annual pension contribution to $30.9 million.
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The budget calls for Rockford to continue to contribute $1.5 million in casino revenue annually to support Rockford Promise, which provides free college tuition for qualified students to attend Northern Illinois University.
The casino has generated more than $3 million in local tax revenue from gambling through September this year, according to Illinois Gaming Board data. The city gets 70% of that money, which is about $2.1 million, with 20% going to Winnebago County and 5% each going to Loves Park and Machesney Park.
The full casino is expected to open by Labor Day 2024, when revenues are expected to further increase. The city has not dedicated casino revenue beyond $1.5 million for Rockford Promise to any specific use.
Monday’s presentation was the first step for City Council before it sets its property tax levy and budget. The budget goes before the city’s Finance and Personnel Committee next week.
The city’s decision to leave its levy flat doesn’t mean your property tax bill will stay the same. That depends on several other factors, namely what other taxing bodies such as Rockford Public Schools, Winnebago County and the Rockford Park District decide to collect in their levies. Another key factor is how much the taxable value of your home has changed from year to year. The majority of Rockford residents saw increases in their taxable property value, with the taxable value of all property in Rockford rising roughly 12%.
The final tax rate you pay will be determined once all property tax levies are set and the county Board of Review hears all property assessment challenges. The Winnebago County Clerk’s Office then calculates the rate based on the levies and the total taxable value of all property.
“Since 2017, council’s decision to hold the line on property taxes has resulted in a 33% reduction in the rate,” Hagerty said.
The rate and the taxable value of your home determines the final dollar amount you will pay in 2024.
This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas
