La Grange board directs staff to publish proposed 2023 property tax levy at 4.5% plus new growth after amendment

The Village of La Grange Board of Trustees narrowly directed staff to publish a proposed 2023 property tax levy of 4.5% plus an estimated 0.6% in new growth after amending an initial staff recommendation to publish a 5.6% increase.

Trustees discussed fiscal tradeoffs for nearly two hours, with supporters saying higher levies are needed to fund rising pension costs, lead-service-line work and flood mitigation, and opponents stressing the impact on homeowners. Trustee Peterson said she was “concerned that continuing to levy less than what is allowable will cause the Village to… impact our ability to recruit and retain employees,” and proposed the 4.5% figure as a compromise. Trustee Augustine and Trustee Johnson argued for taking the full 5% cap to preserve long-term revenue for infrastructure and pension obligations.

Staff presented background on the Property Tax Extension Limitation Law and an actuarial summary of the police and fire pension funds. The actuary reported the two funds are roughly 52.8% funded and recommended a combined pension contribution of just under $3.5 million — an increase of about 8% from the prior year — and noted current benefit payments total about $4.6 million annually. Staff's packet had listed an estimated preliminary levy total of $11,924,385 exclusive of debt service tied to the 5.6% figure; trustees instructed staff to revise the packet numbers to reflect the newly approved publishing direction.

The amendment to the publishing motion — moved by Trustee Peterson and seconded by Trustee Gale — passed on roll call (Trustee Peterson, Trustee Gale and Trustee O'Brien voted 'Aye'; Trustee Augustine and Trustee Thompson voted 'No'). With Trustee McGee absent, President Coogler cast an affirmative vote when the board moved to finalize the publishing direction, bringing the board to the majority needed to instruct staff to prepare levy ordinances for the next meeting.

Board members also discussed whether the La Grange Public Library levy should be set separately from the village levy; staff said the village can present an overall number for publication and then finalize a separate library figure before formal adoption.

Next steps: the board published the proposed levy amount for public notice and directed staff to prepare the formal ordinances and revised figures for adoption at the next board meeting.