8% Property Tax Levy Increase Included In Highland Park Budget

HIGHLAND PARK, IL — The Highland Park City Council unanimously approved a $131 million budget on Monday, with final approval of an 8.1 percent property tax levy hike set for next month.

Spending is up by $4 million from last year's budget, though the city's total staff size is shrinking by 0.6 of a full-time position to 272.4.

Finance Director Kristi McCaulou said the property tax increase amounts to an additional $125 for a Highland Park homeowner whose house is assessed at $500,000 in value.

"This increase is driven heavily by the debt levy and it has to do with the timing of our debt payments and previously issued debt, as well as some new debt that the city is expected to issue in 2025," McCaulou said at a "truth in taxation" hearing, which is mandated by state law any time home rule municipalities seek to hike levies by more than 5 percent in a year.

The 2025 Highland Park city budget dedicates $36 million to capital improvement projects, $32 million of which is set aside for infrastructure improvements, according to City Manager Ghida Neukirch.

"The 2025 capital [improvement plan] is supported by $10.5 million of debt financing, $9.4 million of user charges, $6.7 million of strategic fund drawdowns, $5.2 million of motor fuel tax and grants, and $4.2 million of sales tax, tax increment financing, other taxes, and sale of assets," Neukirch said.

This includes $16 million for upgrades to streets, sidewalks, bridges, parking areas, bike paths, lighting and forestry, along with another $16 million for water and sewer system improvements, Neukirch said in the budget transmittal letter. The remaining $4 million will go toward facility upgrades and replacing fleet equipment.

Mayor Nancy Rotering emphasized that the city government's share of its residents' property tax bills is just under 8 percent.

"We continue to look at city operations and investments with a sustainability lens," Rotering said. "We're making progress, but we have a handful of goals not yet met that we will continue to work on, as our future and the futures of our children depend on it."

The mayor said the 2025 budget supports the local government's commitment to fiscal stability, public safety, infrastructure investments, economic development and environmental stability.

"It reflects our values as a community. It's balanced and it's transparent. Our costs line up clearly with our revenues," the mayor said.

Rotering also claimed, falsely, that "we're one of only a handful of Illinois cities with the highest bond rating available, AAA."

While it is true that Moody's does rate Highland Park "Aaa," with a credit update in February citing the fact that the median income of its residents is twice the national average, that agency also gave top ratings to more than "a handful" of other towns.

On the North Shore alone: Lake Forest, Lake Bluff, Deerfield, Wilmette, Winnetka, Northbrook and Glenview, not to mention other cities, such as Champaign, in other parts of the state, received top ratings from Moody's. And last year, fellow ratings agency Standard & Poor's listed 22 Illinois municipalities with AAA stable ratings — Highland Park was not among them.

Also at Monday's meeting, the City Council approved a new contract with City Manager Ghida Neukirch, who completed a decade on the job last month.

The new five-year employment agreement includes a raise of more than $14,000, bringing her base salary to $300,000. The contract also includes $3,500 in annual deferred compensation, two additional vacation days and a one-time $20,000 bonus.

The city's 2025 budget was approved Monday, while the levy is set for final approval Dec. 16.