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Home My WebLink About8.2 Second Reading and Approval of AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF TAXES FOR THE CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2025, AND ENDING DECEMBER 31, 2025.Item Cover Page Subject Second Reading and Approval of AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF TAXES FOR THE CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2025, AND ENDING DECEMBER 31, 2025. Meeting November 18, 2025 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD Category OLD BUSINESS Type Ordinance Information The Village must file its 2025 tax levy ordinance with Cook County prior to December 2025. The filing includes corporate tax levy and abatement ordinances. The Village will receive proceeds from the 2025 tax levy in 2026. The first reading of this ordinance covering the tax levy was held on October 28, 2025. The public hearing, second reading, and final approval of the ordinance will occur on November 18, 2025. Discussion The proposed 2025 property tax levy for the Village (payable in 2026) is $18.2 million, reflecting a 0 percent change from the 2024 level. The Police Protection levy is $4,699,527, an increase of $266,097 or 6.0 percent. The Fire Protection levy is $4,215,068, reflecting an increase of $84,503 or 2.05 percent. The Village will be deploying $925,000 from grocery taxes towards the public safety pension abatement. The Village will also be deploying $2.0 million in public safety pension abatement from the Pension Stabilization Fund. With the total abatement of $2,925,000, the public safety pension levies will be $5,,144,980 and $3,949,810 for the Police and Fire Departments, respectively. With these abatements, the public safety pension will show a reduction of $84,503 for the Police Department and $266,,097 for the Fire Department. These reductions on the pension side offset the increases in the operating levies. The Village has a total debt service payment of $7,795,919 due in 2026. Of this amount, the Village will be abating $7,574,552 and levy $225,794 (with 2% loss and costs). The Village also approves and reports the annual levy for the Mount Prospect Library to Cook County. The Mount Prospect Library will have an annual levy of $11,517,290, which shows a 2.0 percent increase over the 2024 extended taxes payable in 2025. "' "I LLAG E: of M O�U NT PROSPECT IIR III iii ce IIR rro e t :lii o Fire IlPrrote iii o IIRdl iii ce Rension Fund IlFirefighters," ` IIRensii�on Fund T,ot,a l to e,rrati on I Levy T,ot,a I Daybt e,rr ice, Levy T,ot,a l A I I agar Lem"" O�U NT PROSPECT PU BLI C LI BRARY Library Lev , IF a n d T,ot,a I Library Lem"" T,ot,al ViIIa le a nd H br,a ryConib,ine T,ot,a l Oo pe,r,ating Levy T,ot,aI Day t e,rr ice, Levy .2 ,82. 11.1517? 2,9110 1.1.,E 2.9114611 The Village's levy, totaling $18.2 million, will be the lowest in the last eleven years. In order to achieve the above levy, the Village is abating a total of $7.4 million from various sources. IA 000,000 1. e e a EG IM. II 1 Taxes bliy Ununcarplorated Area Residents and Businesses. IA 0 00 0 0 0 Police IM. Pension s Abatements a Ablaternents 1 '�.,250 201 u� IIN, Police Bands IN A 4 '� Illh IIM and H IINh ■h d sss Abatements 1 .f IIN, N on�ds Abatements $2,31000 — Debit Service Fund Interest Incorne $925,000 —° Grocery Taxes to ble used for, the Police and Fire Pension Abatements The Village has used the additional revenue from the sales tax (General Fund) to provide property tax abatements totaling $5.1 million. Out of this amount, $2.0 million will be allocated to the Police Pension Fund and Fire Pension Fund. The remaining $3.1 million is taken from the General Fund to fulfill various G.O. Bonds debt service obligations. The debt service abatement includes $1.4 million for the Police and Fire HQ Bonds and $1.7 million for the series 2016 G.O. Bonds. The Village will also be deploying $925,,000 from grocery taxes M M towards the pension abatement and $323,050 in debt service abatement from video gaming tax and interest income. Without these abatements totaling $7.4 million, the property tax levy would have shown a 41.1 percent increase over the 2024 amount. This would have been the highest levy in the last eleven years. The total levy in 2015 was $18.3 million. With the proposed abatements, the 2025 levy will be the lowest in the past decade. With the above abatements and levy amounts, an average home valued at $400,000 will see a total property tax for the Village at $1,003. In the absence of the abatement, this amount would have increased by $412. r` c 0'Qp,000 AsSe,ssie,d Va,Iue -1.0% $ 40,pDOO 40,0 GOO $ 40,,p,000, Equ,ahzed Assessed Va[uie $ 121,142D $ 1211,4210 14,20 ICI I Rate 0.826, 0.83 Proplefty, Tax $ L0013 5 ,3 1�ncreas,e/(Dlecreasei 1 r'e,,ase) 4 1. 1(I�� Alf Am rnnf ivrna 1. Hold a second reading of the ordinance and approve the attached ordinance authorizing the levy and collection of 2025 property taxes payable in 2026, reflecting a 0 percent increase in the Village Levy and a 2.0 percent increase in the Mount Prospect Library Levy. 2. Action at the discretion of the Village. Staff Recommendation Staff recommends holding the second reading of the ordinance and adopting the attached ordinance authorizing the levy and collection of 2025 property taxes payable in 2026, reflecting a 0 percent increase in the Village Levy and a 2.0 percent increase in the Mount Prospect Library Levy. Attachments 1. Final Levy Ordinance - 2025 2. Budget Recommendation from the Finance Commission 2025-10-25 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF TAXES FOR THE CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1, 20259 AND ENDING DECEMBER 31, 2025 PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the day of November, 2025 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois the day of 1 2025. ORDINANCE NO. AN ORDINANCE AUTHORIZING THE LEVY AND COLLECTION OF TAXES FOR THE CORPORATE AND MUNICIPAL PURPOSES OF THE VILLAGE OF MOUNT PROSPECT FOR THE FISCAL YEAR BEGINNING JANUARY 1, 20259 AND ENDING DECEMBER 31, 2025 NOW, THEREFORE, BE IT ORDAINED BY THE President and Board of Trustees of the Village of Mount Prospect, Cook County, Illinois, as follows: Section 1: That the sum of Twenty Nine Million One Hundred Sixty Nine Thousand and Eighty Eight Dollars ($29,169,088), the same being the total amount to be levied of budget appropriations heretofore made for the corporate and municipal purposes for the fiscal year beginning January 1, 2025, and ending December 31, 2025, as approved by the President and Board of Trustees of the Village of Mount Prospect, be and the same is hereby levied on all taxable property within the Village of Mount Prospect according to the valuation of said property as is, or shall be assessed or equalized by the State and County purposes for the current year 2025. Section 2: The budgetary appropriations having been made by the President and Board of Trustees of the Village of Mount Prospect were passed and approved by Ordinance No. 6762 at a meeting hereof regularly convened and held in said Village of Mount Prospect, Illinois, on the 6th day of November, 2024, and amended by Ordinance No. 6782 on the 18th day of March, 2025, by Ordinance No. 6789 on 15th day of April, 2025, by Ordinance No. 8794 on 8th day of July, 2025 and thereafter duly published according to law, the various objects and purposes for said budgetary appropriations are heretofore made and set forth under the column entitled "Amount Budgeted", and the specific amount herein levied for each object and purpose is set forth under the column entitled "Amount Levied", in Articles I through VI. 1 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2025 Tax Levy Amount Amount ARTICLE I - POLICE PROTECTION Personal Services, Salaries & Wages 14,289,475.0 407,379 Employee Benefits 8,791,618.0 0 Other Employee Costs 191,820.0 0 Contractual Services 3,213,195.7 0 Utilities 12,500.0 0 Insurance 195,821.0 0 Commodities & Supplies 260,617.9 0 Office Equipment 26,125.0 0 Other Equipment 15,285.0 0 Building Improvements 35,000.0 0 Total Police Department 2710311458 407,379 TOTAL BUDGET FOR POLICE PROTECTION 271031,458 AMOUNT TO BE RAISED BY TAX LEVY 4071379 ADD 2% FOR LOSS & COST OF COLLECTION 921148 TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR POLICE PROTECTION 4,699,527 ARTICLE II -FIRE PROTECTION Personal Services, Salaries & Wages 12,358,778.00 4,1321420 Employee Benefits 7,655,769.00 0 Other Employee Costs 187,200.00 0 Contractual Services 3,218,628.00 0 Utilities 14,000.00 0 Insurance 160,393.00 0 Commodities & Supplies 74,250.00 0 Building Improvements 2,500.00 0 Office Equipment 750.00 0 Other Equipment 206,322.00 0 Total Fire Department 2318789590 41132,420 TOTAL BUDGET FOR FIRE PROTECTION 231878,590 AMOUNT TO BE RAISED BY TAX LEVY 4,132,420 ADD 2% FOR LOSS & COST OF COLLECTION 82,648 TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR FIRE PROTECTION 4,215,068 ARTICLE III - DEBT SERVICE 00 Debt Service 00 00 518 G.O. Bonds - Series 2016 Bond Principal 1179500 2211367 Interest Expense 166,350 0 Bank and Fiscal Fees 0 0 Total G.O. Bonds - Series 2016 11961,350 2211367 ARTICLE III - DEBT SERVICE (continued) 00 00 565 G.O. Bonds - Series 2017 - TIF Bond Principal 220,000 Interest Expense 125,369 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2017 345,369 00 00 565 G.O. Bonds - Series 2017 - Water Bond Principal 220M00 Interest Expense 115,331 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2017 335,331 00 00 566 G.O. Bonds - Series 2018A - TIF Bond Principal 310,000 Interest Expense 216,369 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2018A - TIF 526,369 00 00 566 G.O. Bonds - Series 2018A - Water Bond Principal 210,000 Interest Expense 134,250 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2018A - Water 344,250 00 00 519 G.O. Bonds - Series 2018B - New Bond Principal 0 Interest Expense 114441250 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2018B - New 11444,250 00 00 519 G.O. Bonds - Series 2018B - Refi Bond Principal 160,000 Interest Expense 78,250 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2018B - Refi 2389250 00 00 565 G.O. Bonds - Series 2019A - Water Bond Principal 375M00 Interest Expense 265M50 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2017 640M50 00 00 565 G.O. Bonds - Series 2019B - TIF Bond Principal 2909000 Interest Expense 2309100 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2017 520,100 00 00 G.O. Bomds - Series 2022 - Water/Sewer Bond Principal 280,000 Interest Expense 281,300 Bank and Fiscal Fees 0 Total G.O. Bonds - Series 2022 5619300 ARTICLE III - DEBT SERVICE (continued) 00 00 G.O. Bomds - Series 2022B - Flood Control Bond Principal 70500 0 Interest Expense 174,300 0 Bank and Fiscal Fees 0 0 Total G.O. Bonds - Series 2022 879,300 0 TOTAL BUDGET FOR DEBT SERVICE 7,795,919 AMOUNT TO BE RAISED BY TAX LEVY 221,367 ADD 2% FOR LOSS & COST OF COLLECTION 41427 TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR DEBT SERVICE 225,794 ARTICLE IV - POLICE PENSION 00 Police Pensions Annual Pension Costs 6,506,598 5M44M98 Total Police Pensions 615061598 5M44M98 TOTAL BUDGET FOR POLICE PENSION 61506,598 AMOUNT TO BE RAISED BY TAX LEVY 5M441098 ADD 2% FOR LOSS & COST OF COLLECTION 1001882 TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR POLICE PENSION 5J441980 ARTICLE V - FIREFIGHTERS' PENSION 00 Fire Pensions Annual Pension Costs 513341863 3,8721363 Total Firefighters' Pensions 513341863 318721363 TOTAL BUDGET FOR FIREFIGHTERS' PENSION 5133403 AMOUNT TO BE RAISED BY TAX LEVY 3,8721363 ADD 2% FOR LOSS & COST OF COLLECTION 77,447 TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR FIREFIGHTERS' PENSION 319491810 ARTICLE VI - MOUNT PROSPECT LIBRARY 90 Mount Prospect Library Library Expenditures 171941 NO 11,291,461 Bond Principal 0 0 Interest Expense/Fiscal Charges 0 0 Total Library Services 17,941 NO 11,291,461 TOTAL BUDGET FOR MOUNT PROSPECT LIBRARY 1719411000 AMOUNT TO BE RAISED BY TAX LEVY - Library Expenditures 11,291,461 AMOUNT TO BE RAISED BY TAX LEVY - Bond Principal and Interest 0 ADD 2% FOR LOSS & COST OF COLLECTION 225,829 TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR MOUNT PROSPECT LIBRARY 11,517,290 Total Levy w/o L&C 2936908 Total Levy w/ L&C 29,752,469 VILLAGE OF MOUNT PROSPECT, ILLINOIS 2025 TAX LEVY SUMMARY Article Fund I Police Protection II Fire Protection III Debt Service IV Police Pension V Firefighters' Pension Village Totals VI Mount Prospect Library Library Services Library Debt Service Library Totals Village and Library Totals Amount to be Raised Amount by Budgeted Tax Levy $ 27M31,458 41607,379 23,878,590 41132,420 7,795,919 221,367 6,506,598 5,044,098 70,547,428 17,877,627 17,941,000 11,291,461 171941 4) 000 1112911461 W4881428 29116908 Total Amount Tax Levy for Loss Incl. Loss and Cost and Cost 925148 416991527 821648 4,2151068 41427 2251794 1001882 511441980 771447 319491810 3571552 M235J 79 2251829 1115171290 2251829 1115171290 5831381 2917521469 Section 3: The sum of $666,582 is budgeted to be received from personal property replacement tax revenue during the fiscal year commencing January 1, 2025 and ending December 31, 2025 and has been included herein as funds to be derived from sources other than property taxes supporting expenses related to police and fire protection, general obligation bonds and interest, public safety pensions and library services. Section 4: That the County Clerk is directed to add 2% to the requested tax levy as a provision for loss and cost. Section 5: That the Village Clerk of the Village of Mount Prospect is hereby directed to certify a copy of this Ordinance and is hereby authorized and directed to file a copy of the same with the County Clerk of Cook County, Illinois, within the time specified by law. Section 6: That, if any part or parts of this Ordinance shall be held to be unconstitutional or otherwise invalid, such constitutionality or invalidity, shall not affect the validity of the remaining parts of this Ordinance. The President and Board of Trustees of the Village of Mount Prospect hereby declares that they would have passed the remaining parts of the Ordinance of they had known that such parts or parts thereof would be declared unconstitutional or otherwise invalid. Section 7: That this Ordinance shall be in full force and effect from and after its passage, approval, publication in pamphlet form and recording, as provided by law. AYES: ABSENT: PASSED and APPROVED this day of November 2025. ATTEST: Karen Agoranos, Village Clerk Paul Wm. Hoefert, Mayor s From: Finance Commission, Village of Mount Prospect To: Mayor Paul Wm. Hoefert and the Village Board of Trustees Date: October 24, 2025 Subject: Finance Commission Budget Recommendation The Finance Commission met at its regularly scheduled meeting on October 23, 2025. All Commissioners were present except Commissioner Don Ocwieja. The Commission discussed the 2026 Budget, Property Tax Levy, and related abatements. Director of Finance Amit Thakkar provided a summary presentation covering these topics. The Commission had previously reviewed the draft budget presentation on September 25, 2025, at the Emergency Operations Center. Following the October 23 presentation, Commissioners offered several questions and recommendations: 1. Staffing and Overtime Chair Ken Arndt commended staff for overall fiscal management but encouraged each department to continue evaluating staffing levels to identify opportunities to reduce overtime while optimizing headcount. Director Thakkar noted that this review is performed annually during budget preparation with departments and the Village Manager's Office, and that practice will continue. 2. Advance Distribution of Budget Materials Chair Arndt requested that the budget slide deck be distributed to Commissioners in advance of future meetings to allow for more thorough review and informed discussion. Staff agreed and will implement this for the 2027 budget cycle. 3. Addition of Two Patrol Officers Staff informed the Commission that, at the direction of the Village Board, two patrol officer positions were added to the 2026 budget for seven months, increasing expenditures by $133,000. To offset this, staff also increased projected revenues by $133,000 based on updated forecasts for building and permit fees from the Cloud HQ project. Commissioner Sinan Khamo inquired how this figure was determined. Staff explained that the revenue forecast, which begins in July and finalizes in August, initially did not anticipate Cloud HQ fees due to uncertain timing. However, the project schedule has since been clarified, and staff now expects to collect more than $1 million in related fees during 2026. The conservative $133,000 estimate maintains a balanced General Fund and supports the Village's credit rating. 4. Property Tax Collection Timing Commissioners asked about the status of the second -installment property tax bills. Staff reported that the County has issued a rate report but not yet announced a tentative due date. The Village is hopeful that collections will occur by February 287 2025, to ensure recognition as current -year revenue. 5. Property Tax Levy and Abatements A detailed review was provided of the proposed property tax levy and abatements totaling $7.3 million. 6. Operating Budget and Pensions The Commission and staff also discussed operating budget trends, pension funding, and the long-term financial timeline. 7. Motions and Recommendations The following motions were unanimously approved: o Budget Approval: Motion by Commissioner Derfler, seconded by Commissioner Grochocinski, to recommend approval of the 2026 budget as presented. o Property Tax Levy Approval: Motion by Commissioner Rath, seconded by Commissioner Khamo, to recommend approval of the levy as presented. o Abatement Approval: Motion by Commissioner Derfler, seconded by Commissioner Grochocinski, to recommend approval of the abatements as presented. With these actions, the Finance Commission has completed its 2025 work plan. Please contact us with any questions or comments. Respectfully submitted, Finance Commission Village of Mount Prospect