The City of Lake Forest is planning an increase in property taxes to account for anticipated shortfalls in state funding.
The 2.93 percent increase was discussed by the City Council at its Nov. 9 budget meeting and its Nov. 16 City Council meeting. The issue will be up for final approval at the Dec. 7 council meeting. The proposal was described by city officials as a proactive step aimed at keeping the city moving forward while the state's financial direction lingers with uncertainty.
“Springfield has suspended distribution of revenues due to the city, including motor fuel tax, use tax and the E911 fund, amounting to $1 million annually," Finance Committee Chair and Aldermen George Pandaleon said. "If Gov. Rauner’s budget proposal is passed, the city stands to lose another $1 million per year in income tax revenues. Additionally, a proposed property tax freeze by the state will make matters worse. The city has been forced to take action now to deal with the anticipated shortfall from the state of Illinois to preserve vital services.”
The proposed increase works out to approximately $91 annually for the owner of an $800,000 home.
Officials reminded residents that Lake Forest's tax rates are the lowest on the North Shore and that the city is only doing what is necessary to get through a challenging situation.
“The city will continue to stay on top of this issue with the state, and as always, is consistently looking at ways to reduce expenses," Mayor Donald P. Schoenheider said.
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