The Kane County Board may soon vote to increase the county’s property tax levy by a little under $1.8 million for the coming fiscal year.
The matter was discussed and recommended for approval at last week’s Kane County Board Finance Committee meeting, and will next be considered at the board’s Executive Committee meeting on Wednesday.
If recommended for approval by that committee, it would be considered by the full Kane County Board on Nov. 10.
Last year, the county levied about $60.8 million across county funds for fiscal year 2025, as compared to the roughly $62.6 million being proposed this year for fiscal year 2026.
That would amount to a 2.9% increase, a percentage that was proposed to match the Consumer Price Index, or CPI, which is a measure of inflation set by the U.S. Bureau of Labor Statistics. The maximum percentage the levy can be increased is either the CPI or 5%, whichever is lower.
The board OK’d that percentage in August.
Last year was the first year since 2013 that the county board increased the general fund property tax levy except to account for new construction. For fiscal year 2025, the property tax levy went up by about $2 million.
Nearly all of this year’s almost $1.8 million proposed increase would be allocated for the county’s general fund, which is its main operating fund. A small amount of the proposed levy increase would also be going toward the county’s Veterans’ Commission Fund, according to Kane County Finance Director Kathleen Hopkinson.
The total tax levy for the general fund, per the proposed measure, would be set at around $37.6 million, as compared to a little under $35.9 million last year.
The proposed $37.6 million number was used in the county’s draft budget, which is currently on display and which is also expected to be voted on at the board’s Nov. 10 meeting, following months of budget cut and revenue discussions.
Kane County has been experiencing budget shortfalls in recent years that, since 2023, it has been solving by dipping into its cash reserves. If revenue and spending were to remain level, however, the county would be on pace to dip below its required 90-day reserves by 2027, officials have said.
As a result, the county board has been grappling with how to close its budget gap without relying on reserves. One proposed solution was finding additional revenue, most notably via a proposed 0.75% sales tax that voters overwhelmingly shot down in the April 1 election.
Now, since the failure of the referendum question, the county board has been discussing how to cut costs — and potentially bring in some more revenue to the county’s general fund.
With the proposed property tax levy hike factored in, the current draft budget for fiscal year 2026 uses a little over $2 million in reserves.
But the budget is not yet finalized, and Finance Committee Chair Bill Lenert has previously estimated the amount of reserves the county may pull to balance the budget could be between zero and $4 million.
The board must approve a budget by Dec. 1, the first day of its new fiscal year.
Though approving the tax levies for the county’s funds would set the total levy amount the county plans to collect, the actual property tax amount owners pay is not set until after property values are assessed.
Finance Committee member Vern Tepe, at the meeting, clarified that all taxing bodies levy a dollar amount, which is what’s under consideration for Kane County. The actual percentage is established based upon the assessed property values in an area.
Following some discussion from the committee, the proposed tax levies for the county funds were recommended for consideration by the Executive Committee on Wednesday.
mmorrow@chicagotribune.com
