Property taxpayers in Waukegan, Illinois, will not face an increase in city property taxes for the sixth consecutive year. The Waukegan City Council unanimously approved a real estate tax levy of just under $37.3 million during a meeting at City Hall, which will be reflected in tax bills issued by Lake County in the spring of 2025.
Mayor Sam Cunningham highlighted the city’s proactive approach in developing its fiscal spending plan early, which allowed for the decision to maintain a zero-tax increase. “We identified these things early on, and it has helped us to achieve a zero-levy increase for six years,” Cunningham stated. The city’s financial evaluations throughout the year have contributed to this stability, ensuring no need for an increase in the city’s portion of the levy.
The city’s budget for the current fiscal year, which began on May 1, stands at a record $292 million. With projected revenues of $262.9 million, the city budgeted $29.3 million from cash reserves to bridge the gap. The approved tax levy accounts for approximately 14.2% of the total revenue, indicating a consistent funding strategy.
According to Finance Director Juan Garcia, the average assessed value of a three-bedroom home in Waukegan is around $240,000, resulting in annual taxes of approximately $4,469 for homebuyers in that price range. While the city’s tax portion remains unchanged, Alderman Lynn Florian of the 8th Ward cautioned that property tax bills could still increase due to levies from other governmental entities. “Your tax bill may look different next year than it does this year,” Florian noted, emphasizing the need for residents to scrutinize line items on their tax bills.
Despite Waukegan Community Unit School District 60 maintaining flat property taxes for five years, the district recently increased its real estate tax levy by 4.99% to support the quality of education for its students. Cunningham explained that some residents may also be taxed by other school districts, as parts of Warren and Libertyville townships fall within Waukegan’s city limits. “A lot of times, the city of Waukegan has gotten blamed for every tax increase that you see on your bill,” he said, pointing out the complexity of local tax structures.
Looking ahead, Cunningham expressed optimism about maintaining the current tax levy but acknowledged potential challenges. The city is considering significant expenses, including plans for a new police station and fire station, as well as settlements related to wrongful convictions. “All of this will play a role in our future obligations,” he remarked, signaling the need for careful fiscal planning.
Property tax revenue serves specific purposes in Waukegan, as outlined in a memo from retired interim finance director Don Schultz. Approximately $4.87 million of the revenue funds the Waukegan Public Library, while $6.75 million is allocated for garbage collection. The majority, around $22.5 million, supports police, fire services, and pensions for the Illinois Municipal Retirement Fund, with the remaining funds directed toward interest and principal payments on outstanding bonds.
In summary, Waukegan’s sustained strategy of stable property taxes reflects a commitment to fiscal responsibility, even amid anticipated future expenses. The city’s approach serves as a noteworthy example of local governance prioritizing taxpayer stability while navigating the complexities of municipal finance.
