The Lockport City Council discussed the city’s tax levy for 2026 during the Committee of the Whole meeting Wednesday with the prospect of seeing the city’s tax rate decrease again.

But since most homes in Lockport saw an increase in assessed value last year, the average homeowner will likely see some increase in taxes paid to the city.

City Finance Director Lisa Heglund noted that while the city makes up only a small percentage of resident’s tax bills, 7.6%, the money raised from the property tax levy accounts for about 30% of the city’s annual revenue.

By comparison, schools make up 64.7% of the average tax bill and the Lockport Township Fire Protection District accounts for 11.8%.

The property taxes the city takes in supports the cost of the general administration of the city and its staff, the Lockport Police Department, emergency management, liability insurance, the annual audit, debt repayment, and the maintenance and improvement of street lighting and storm water management.

The tax levy is calculated based on the total assessed value of property within the city, including new growth, as determined by Will County.

This year, Heglund said the estimated assessed value of property in Lockport increased by $106.9 million, including $14 million in added value from the development of the Oak Valley subdivision, the Port Apartments, and businesses like Panda Express, 7 Brew, and Scooters Coffee.

The new growth alone will add an estimated $92,000 in revenue for the city in 2026.

Overall, the total tax levy for the city in 2026 is estimated at $8,096,500, though the exact amount will be calculated by the county in spring. This marks a $280,000 increase in the levy over 2025.

While the total revenue is increasing, the actual rate at which property owners will be taxed is going down, for the 11th straight year.

Due to the increase in property values, the city does not need to tax each individual as much to meet it’s financial obligations.

This year the tax rate in the requested levy is 0.6530, as opposed to last year’s rate of 0.6899. However, that does not mean that the average taxpayer will see their tax bill go down.

Heglund explained that since most homes in Lockport saw an increase in assessed value between 7% and 8% in the last year, the average homeowner, based on a property value of $350,000, will see an increase in their city tax bill of $20.85, from $749.61 to $770.46.

Alderman Jonathan Pugh observed that most residents won’t pay attention or be pleased because the rate went down and there was only a minor city increase.

“Nobody’s going to say ‘oh Lockport did good’ if the taxes are still up $200 from the schools and fire district,” he said.

Heglund noted that while the overall levy has increased, the city has not taken the maximum amount it would be allowed to under law without a public hearing, which would have resulted in an increase of about $450,000.

“We have been good financial stewards of the city,” Heglund said. “I don’t want the public to think we haven’t been because there is an increase.”

“We all live in Lockport,” said Alderwoman Joanne Bartelsen. “This does effect us as well as other residents, so we’re very conscious of this, and I think it’s fair. Everyone else takes what they need to operate. I’d rather take the hit and know the city has the funds available that it needs.”

“I think we have done our due diligence to reduce our tax rate, and I think reducing it for 11 years in a row is commendable,” added Alderwoman Susan King.

The tax levy, as well as the proposed budget for 2026, will both be voted on for approval at the Dec. 3 City Council meeting, before the county deadline to submit levies of Dec. 23.