GENERAL OVERVIEW

Levy Increase Ramp for Police and Fire Pension Contributions

The 2015 Appropriation Ordinance included a City levy of $868,156,000

To meet the required pension contributions for Police and Fire pension funds the City proposes
to increase the levy as follows:

2015*
2016
2017
2018

Levy Increase over

2015 AO

Incremental Increase
Y-O-Y

$318,156,000
$427,675,000
$480,802,000
$544,232,000

$109,519,000
$53,127,000
$63,430,000

*2015 Supplemental Ordinance

Impact of the Property Tax Increase

Tax bills for all properties will increase from the 2015 Appropriation Ordinance baseline by:
o 2015 supplemental: 7.1%
o 2016: 9.6%
o 2017: 10.8%
o 2018: 12.2%

Estimated Tax Bills for Homes with Current HOE ($7,000)

Home Values
Levy

Tax
Rate

2015 Baseline
2015+$318M
2015+$428M
2015+$481M
2015+$544M

6.862%
7.352%
7.521%
7.603%
7.701%

$100K
$1,390
$1,489
$1,523
$1,540
$1,560

$150K
$2,325
$2,491
$2,548
$2,576
$2,609

$200K
$3,260
$3,493
$3,573
$3,612
$3,658

$250K
$4,195
$4,495
$4,598
$4,648
$4,708

$300K
$5,130
$5,497
$5,623
$5,684
$5,757

$400K
$7,000
$7,500
$7,672
$7,756
$7,856

$500K
$8,870
$9,504
$9,722
$9,828
$9,954

%
Increase
7.1%
9.6%
10.8%
12.2%

The incremental year-over-year increase is:

o 2015 supplemental: 7.1%
o 2016: 2.5%
o 2017: 1.2%
o 2018: 1.4%

Home
Value

2015
Baseline

$100K
$1,390
$150K
$2,325
$200K
$3,260
$250K
$4,195
$300K
$5,130
$400K
$7,000
$500K
$8,870
% Y-O-Y increase:

2015 Supplemental
2015+
Y-O-Y
$318M
Increase
$1,489
$99
$2,491
$166
$3,493
$233
$4,495
$300
$5,497
$367
$7,500
$500
$9,504
$634
7.1%

Estimated Tax Bills: Year - Over - Year Increase

2016
2017
2018
2015+
Y-O-Y
2015+
Y-O-Y
2015+
Y-O-Y
$428M
Increase
$481M
Increase
$544M
Increase
$1,523
$34
$1,540
$17
$1,560
$20
$2,548
$57
$2,576
$28
$2,609
$33
$3,573
$80
$3,612
$39
$3,658
$46
$4,598
$103
$4,648
$50
$4,708
$60
$5,623
$126
$5,684
$61
$5,757
$73
$7,672
$172
$7,756
$83
$7,856
$100
$9,722
$218
$9,828
$106
$9,954
$126
2.5%
1.2%
1.4%

Helping Homeowners by Increasing the Homeowner Exemption

To help protect all homeowners, especially those who can least afford it, the City is working with
the State to increase the Homeowners Exemption (HOE), currently at $7,000.
The table below shows the impact of increasing the HOE to $14,000 for all taxing bodies that are
solely within the city limits, which would help all homeowners.

Home Value
$100K
$150K
$200K
$250K
$300K
$400K
$500K
HOE City Agencies:

Homeowners' Tax Bill after Levy Increase and Doubling HOE

2015 Base
Estimated Levy
Line
2015+$318M
2015+$428M
2015+481M
$1,390
$1,050
$1,072
$1,083
$2,325
$2,052
$2,097
$2,119
$3,260
$3,053
$3,122
$3,155
$4,195
$4,055
$4,147
$4,191
$5,130
$5,057
$5,172
$5,227
$7,000
$7,061
$7,221
$7,299
$8,870
$9,065
$9,271
$9,371
$7,000
$14,000
$14,000
$14,000

2015+544M
$1,096
$2,145
$3,195
$4,244
$5,293
$7,392
$9,491
$14,000

Meanwhile, homeowners living in homes valued at $250,000 or less will see little or no increase
and most nearly 290,000 will see a decrease in their overall bill.
The HOE for county-wide taxing bodies remains at $7,000.
The table below shows the change in tax bills from the 2015 baseline amount.

Impact to Homeowners' Tax Bill of a Levy Increase and Corresponding HOE Increase
2015 Base
Estimated Levy
Line
2015+$318M
2015+$428M
2015+481M
2015+544M
$100K
$1,390
($340)
($318)
($307)
($294)
$150K
$2,325
($273)
($228)
($206)
($180)
$200K
$3,260
($206)
($138)
($105)
($65)
$250K
$4,195
($140)
($48)
($4)
$49
$300K
$5,130
($73)
$42
$97
$163
$400K
$7,000
$61
$221
$299
$392
$500K
$8,870
$195
$401
$501
$620
HOE City Agencies:
$7,000
$14,000
$14,000
$14,000
$14,000
Home Value

By doubling the HOE for city-wide taxing bodies, all homeowners experience savings:
o 2015: an additional $439 is deducted from their tax bill
o 2016: an additional $452 is deducted
o 2017: an additional $457 is deducted
o 2018: an additional $464 is deducted

Without HOE Increase

Year
2015
2016
2017
2018

Current HOE
$7,000
$7,000
$7,000
$7,000

With Doubling HOE for City-wide Taxing Agencies

Savings on
Tax Bill
$515
$526
$532
$539

City-wide HOE
$14,000
$14,000
$14,000
$14,000

Savings on
Tax Bill
$954
$978
$989
$1,003

Increased
Savings
$439
$452
$457
$464

Effective Tax Rate: Chicago Has the Lowest Residential Rate in Cook County
Chicago has the lowest effective tax rate in the area. Effective tax rate is a way to measure property tax
burden. It estimates what percent of full market home value a property owner pays in taxes each year.
The table below was published by the Civic Federation for Tax Year 2012: