The city of St. Charles approved a $15.4 million 2025 property tax levy, an increase over last year in a plan officials said is meant to help pay for rising costs of services due to inflation and first responder pensions.

A public hearing for the levy was held during the Dec. 1 city council meeting.

Here’s a look at how the levy will affect city functions and taxpayers going into next year.

Mayor Clint Hull said since the city council approved the preliminary estimate on Nov. 17, “there have been no changes in the estimate since that time.”

City council unanimously approved a general purposes levy with a 3.99% increase over last year’s total levy extension. Last year’s levy was around $14.9 million.

The property tax levy sets the amount of money a taxing body intends to collect. The tax rate is a reflection of what individual property owners will need to pay to generate the property tax revenue needed. The levy will be collected on property taxes payable in 2026.

City finance director Bill Hannah said the owner of a $400,000 house should expect a $24 annual increase on the portion of their property tax bill that goes to the city. That’s typically about 10% of the overall tax bill.

“The increase in the levy is primarily to fund increased fire and police pension obligations, and to help fund, because of inflation in recent years, the increasing cost of providing high-quality services to the citizens,” Hannah said.

The total tax levy is calculated using a combination of inflation measured by the Consumer Price Index, the estimated Equalized Assessed Value (EAV) growth, new construction and expenses.

Over the past four years, the average Consumer Price Index inflation rate has been 4.95%, Hannah said. For 2024, that rate dipped to a 2.9% increase.

The St. Charles police pension fund contribution from the levy is increasing by almost $30,000 to slightly over $4.5 million total. The St. Charles firefighters’ pension fund contribution from the levy is increasing nearly $236,000 to roughly $3.2 million, according to city documents.

In total, property taxes comprise around 24% of the city’s budgeted revenues for the general fund, according to city documents.

Hannah said the increase in the tax levy will help fund the city’s services and maintain core operations.

The city must now file the approved 2025 tax levy ordinance with the county by the year’s end.