DeKalb Times

City of Dekalb City Council met Oct. 27.

Here is the agenda provided by the council:

A. CALL TO ORDER AND ROLL CALL 

B. PLEDGE OF ALLEGIANCE 

C. APPROVAL OF THE AGENDA 

D. PRESENTATIONS 

1. Proclamation: Fall Arbor Day – October 28, 2025. 

E. PUBLIC PARTICIPATION 

F. APPOINTMENTS 

None. 

G. CONSENT AGENDA 

1. Minutes of the Regular City Council Meeting of October 13, 2025. 

2. Accounts Payable and Payroll through October 28, 2025, in the Amount of  $3,263,742.08.  

3. Freedom of Information Act (FOIA) Report – September 2025. 

4. FY2025 Human Services Funding 3rd Quarter Report. 

5. Resolution 2025-096 Authorizing the Approval of Certain Executive Session  Meeting Minutes of the City of DeKalb City Council. 

H. PUBLIC HEARINGS 

None.

Assistive services, including hearing assistance devices, available upon request.

I. CONSIDERATIONS 

1. Consideration of the Annual Property Tax Levy in the City of DeKalb 

The ability to tax property in Illinois was included in the state’s first constitution in 1818. It is an “ad valorem” tax, which in Latin means “according to value” and not according to the ability to pay. Initially, the property tax in Illinois was a state tax, but urban growth and the rise in demand for public services led to the Illinois Revenue Code of 1853, which allowed taxation by townships and established a system of local assessors sworn by oath to provide true assessments of personal property. A state Board of Equalization was established in 1867 to make sure the ostensibly true assessments were equalized across a county. The last state

levied property tax was repealed in 1932, and a state sales tax was established in its place in 1933.

A state income tax was instituted in 1968 which was politically offset by the elimination of the corporate property tax in the Constitution of 1970. In 1991, following years of spiking local property taxes across the state, the legislature approved the Property Tax Extension Limitation Law (PTELL) providing that non-home rule taxing districts in the Chicago collar counties were restricted from increasing property tax extensions by more than 5% or the change in the applicable Consumer price Index, whichever is less. DeKalb County is subject to PTELL. Home rule municipal governments are not subject to PTELL.

Finally, in the early 2000s, exemptions were instituted for senior citizens with homestead status and seniors with lower household incomes. Additionally, homestead exemptions were increased to $6,000 (where they now stand).

Calculating the Rate 

The tax rate of a local taxing body is the result of dividing its approved levy by its “equalized assessed value” or EAV. To illustrate:

Levy of Taxing Body (numerator) = Tax Rate EAV of Taxing Body (denominator) 

Local tax shares for 2024 are depicted in Table 1:

Table 1

2024 Comparative Property Tax Shares
Taxing Body	Tax Rate	% of Aggregate
DeKalb School District	4.831923	60.65%
County of DeKalb	0.78751	9.88%
City of DeKalb	0.62286	7.82%
Kishwaukee College	0.54886	6.89%
DeKalb Park District	0.49147	6.17%
DeKalb Public Library	0.30541	3.83%
DeKalb Road & Bridge	0.13697	1.72%
DeKalb Township	0.10860	1.36%
KWRD	0.07567	0.95%
DeKalb County Forest Preserve	0.05760	0.72%
Total	7.96687	100.00%

In 2019, the aggregate property tax rate including all local taxing bodies was $11.73464 per $100 EAV. With strong leadership from Mayor Barnes and the DeKalb City Council behind a steady and dramatic decrease in the aggregate rate, the aggregate rate in 2024 had been lowered to $7.96687 per $100 EAV, a 32% decrease in 5 tax years. 

More than any other factor including the substantial “equalization factors” applied to the EAV of properties in DeKalb Township in recent years, the ability of local taxing bodies to realize the benefit of new construction in their levy decisions while lowering their property tax rates is the continuing development of industrial values on DeKalb’s southside. The impact of Meta  alone on local taxing bodies is portrayed in the table below: 

Table 2 

	2022	2023	2024	Total
Taxable Value (EAV) with Abatements	39,444,591	197,515,525	394,479,735
Actual Meta Taxes Paid
Taxing Body	2022  Levy Year	2023  Levy Year	2024  Levy Year	Total
School District 428	2,403,524	7,111,507	19,060,957	28,575,988
County	381,690	1,127,593	3,106,567	4,615,850
City of DeKalb	353,412	1,016,194	2,457,056	3,826,662
DeKalb Park District	-	-	1,938,750	1,938,750
Afton Township	43,141	99,031	198,344	340,516
Afton Road & Bridge	147,736	340,235	765,409	1,253,380
Kishwaukee College	240,115	732,348	2,165,141	3,137,604
DeKalb Public Library	194,111	445,757	1,204,781	1,844,649
DeKalb County Forest Preserve	27,276	80,247	227,220	334,743
KWRD	56,508	119,193	298,503	474,204
Total (excl. Afton-Pierce TWP)	3,847,513	11,072,105	31,422,729	46,342,347

The following table tracks the City of DeKalb levies, EAVs, and tax rates since 2014:

Table 3 

Levy Year	Rate-Setting EAV: City	City Levy	City Rate	% Difference: City Rate
2014	464,966,381	4,270,540	1.02450
2015	468,077,742	5,094,730	1.19420	16.56%
2016	503,861,829	5,565,384	1.20210	0.66%
2017	529,629,464	6,004,594	1.22680	2.05%
2018	547,947,687	6,017,140	1.18830	-3.14%
2019	585,726,839	6,269,649	1.15410	-2.88%
2020	610,333,062	6,522,507	1.06868	-7.40%
2021	694,171,673	6,845,317	0.98612	-7.73%
2022	794,561,930	7,119,130	0.89599	-9.14%
2023	952,383,378	7,723,459	0.81096	-9.49%
2024	1,339,235,605	8,341,563	0.62286	-23.19%

The City of DeKalb property tax rate has been reduced 47.6% since 2018. In the same period, the properties in DeKalb Township have increased in value by 49.57%, based solely on the annual Township multiplier.

The City’s estimated EAV in 2025 is $1,441,621,388 (after about $300,000,000 in abatements) largely owing to the extraordinary impact of Meta (DeKalb Data Center). The proposed 2025 City property tax levy of $8,979,039 would “hold the line” in terms of the City of DeKalb’s rate, while continuing to sacrifice any opportunity for property tax revenue to support day-to-day operations. The impact on a theoretical householder with a home carrying a 2025 EAV of $157,229 is illustrated in Table 4, below:

Table 4 

City of DeKalb: Freeze at 2024 Tax Rate Level
Levy Year	Base EAV	Equalization Factor		New EAV Homestead  Final EAV		DeKalb Rate	DeKalb Tax
2019	$97,906	1.0351	$101,343	($6,000)	$95,343	1.0704	$1,020.55
2020	$101,343	1.0409	$105,488	($6,000)	$99,488	1.06868	$1,063.21
2021	$105,488	1.0162	$107,197	($6,000)	$101,197	0.98612	$997.92
2022	$107,197	1.0662	$114,293	($6,000)	$108,293	0.89599	$970.29
2023	$114,293	1.0953	$125,185	($6,000)	$119,185	0.81096	$966.54
2024	$125,185	1.1469	$143,575	($6,000)	$136,575	0.62286	$850.67
2025	$143,575	1.0951	$157,229	($6,000)	$151,229	0.62284	$941.92

As in every fiscal year since 2013, the proposed City of DeKalb property tax levy is entirely dedicated toward the funding of Fire and Police pensions. The City will meet 100% of its pension obligations for 2026, but the City property tax levies will not cover the entirety of that obligation. The balance will be paid from other General Fund revenues as indicated in Table 5: 

Table 5

Actual City Pension Funding and Pension Obligations
	2024 Actuarial Obligation	2024 Levy	Shortfall*	Shortfall %
Fire Pension	$5,343,974	$4,215,632	$1,128,342	21.11%
Police Pension	$4,130,481	$3,507,827	$622,654	15.07%
Total	$9,474,455	$7,723,459	$1,750,996	18.48%
Increase over PY	7.25%	8.49%
	2025 Actuarial Obligation	2025 Levy	Shortfall*	Shortfall %
Fire Pension	$5,802,043	$4,552,883	$1,249,160	21.53%
Police Pension	$4,615,568	$3,788,453	$827,115	17.92%
Total	$10,417,611	$8,341,336	$2,076,275	19.93%
Increase over PY	9.95%	8.00%
	2026 Actuarial Obligation	2026 Levy	Shortfall*	Shortfall %
Fire Pension	$6,010,761	$4,903,669	$1,107,092	18.42%
Police Pension	$4,858,896	$4,075,370	$783,526	16.13%
Total	$10,869,657	$8,979,039	$1,890,618	17.39%
Increase over PY	4.34%	7.65%
*Paid from General Fund revenues other than property taxes

The recent history of the City property tax levy as a percent of the total General Fund budget in the following year is illustrated in Table 6:

Table 6 

	2019  Actual	2020  Actual	2021  Actual	2022  Actual	2023  Actual	2024  Actual	2025  Actual	2026  Actual
Total Levy	$6,017,140	$6,269,649	$6,522,507	$6,845,317	$7,119,130	$7,723,459	$8,341,563	$8,979,039
% increase		4.20%	4.03%	4.95%	4.00%	8.49%	8.00%	7.64%
Total GF Rev	$38,703,129	$38,589,510	$44,464,331	$47,079,526	$51,002,166	$52,557,870	$53,309,702	$55,181,523
% GF Rev Inc		-0.29%	15.22%	5.88%	8.33%	3.05%	1.43%	3.51%
Levy % GF Rev	15.55%	16.25%	14.67%	14.54%	13.96%	14.70%	15.65%	16.27%

The challenge each year is to guess what the EAV will be, in advance of property tax appeals. Aiming for a final tax rate that hits the bullseye in terms of minimal taxpayer impact is part science and part conjecture.

Two other City levy options might be considered but are not recommended: 

a) Inflate the estimate of the City’s final EAV beyond the current County estimate, and increase the City levy by 8% so less dollars are taken from the City’s sales and use taxes to maintain the same rate, as shown in Table 7:

Table 7 

					Stay at 2024 Rate if Higher EAV
Tax Year	2021	2022	2023	2024	2025
City Levy	$6,845,317	$7,119,130	$7,723,448	$8,341,336	$9,008,643 (+8%)
City EAV	$694,171,673	$794,561,930	$952,383,378	$1,339,235,605	$1,446,335,131
City Rate	0.98612	0.89598	0.81096	0.62284	0.62286
Inflate EAV by:					$4,713,743

The problem with this approach is that the City government does not determine the EAV, and if the final EAV determination in March is lower than expected, the City rate will increase in proportionate fashion, meaning an even higher tax bill for local residents.

b) Dramatically reduce the 2024 levy by $232,216 (which would be $899,523 below the recommended levy of $8,979,039 in 2025) so the average homeowner depicted in Table 4, above, pays the same City taxes in 2026. This will also result in a reduced City rate of 0.56250 per $100 EAV.

Table 8

					Lower Levy and Lower Rate
Tax Year	2021	2022	2023	2024	2025
City Levy	$6,845,317	$7,119,130	$7,723,448	$8,341,336	$8,109,120
City EAV	$694,171,673	$794,561,930	$952,383,378	$1,339,235,605	$1,441,621,388
City Rate	0.98612	0.89598	0.81096	0.62284	0.56250
Reduce Levy by:					-$232,216

The problem with this approach is that the City levies are currently not sufficient to cover the City’s Police and Fire Pension obligations, as noted in Table 5. If the City levy does not increase by 7% every year, it will not keep up with the annual actuarial increase associated with the state pension system’s closed amortization system. With every levied dollar going to these amortization payments each year, this would be a fiscal error: it will increase rather than decrease the City’s unfunded state pension liabilities which are currently as follows: 

Police: $46,391,645 (54.4% funded, up from 52.8% in 2024)

Fire: $57,789,765 (44% funded, up from 41.6% in 2024) 

Total Unfunded Liabilities: $104,181,410

At the City’s Finance Advisory Committee meeting on October 20, the Committee recommended the proposed City levy of $8,979,039. The City Manager recommends Council concurrence with this recommendation. 

If the Council consensus is supportive, the City staff will prepare the appropriate Truth in Taxation Hearing notice and levy and abatement ordinances for consideration in November.

J. RESOLUTIONS 

1. Resolution 2025-097 Authorizing an Auditing Services Agreement with Sikich CPA LLC for Auditing Services Related to Fiscal Years 2025-2029. 

City Manager’s Summary: After a request for proposals, the City of DeKalb entered a four year audit services contract with Sikich CPA, LLC for fiscal years FY2021 through FY2024.

The City’s Finance department recently circulated a new RFP seeking interest from qualified firms for the City’s auditing services from FY2025 through FY2029. Two electronic proposals were received on September 9, 2025.

The following firms submitted proposals:

1. Sikich CPA LLC

2. Mauldin & Jenkins LLC

A complete review of the two proposals was completed over the past few weeks. Both met the specifications set forth in the RFP. The table below offers additional detail with respect to price.

Fee Proposals
Firm	FY2025	FY2026	FY2027	FY2028	FY2029
Sikich CPA LLC	$56,800	$58,500	$60,250	$62,060	$63,920
Mauldin & Jenkins LLC	$87,500	$90,000	$93,250	$95,750	$99,000

Mauldin & Jenkins LLC of Atlanta, Georgia provides high quality services, but their current footprint of governmental clients extends to North Carolina and west to the City of Dubuque, Iowa. The firm would not be able to economically perform regular in-person visits with City staff to perform the obligatory fieldwork and would require more City staff time to prepare records for electronic correspondence.

Sikich CPA LLC has provided audit services to the City of DeKalb over the last two contracts (FY2016-2020) and (FY2021-2024). The City has received high quality services, expertise, and general guidance from the firm. The Sikich CPA LLC total cost was competitive, and City Staff are familiar with their team and level of high-quality comprehensive service. In addition to auditing services, Sikich CPA LLC provides City staff with training opportunities to keep the City’s administration well-informed of trends and requirements in accounting, long range financial planning, grant administration, etc. Finally, the Sikich proposal is significantly less expensive.

City Council approval of the Sikich proposal is recommended. 

2. Resolution 2025-098 Authorizing the Purchase and Equipping of One 2023 Police Package Dodge Durango Based on the Illinois Central Management Services Contract Pricing in an Amount Not to Exceed $38,508. 

City Manager’s Summary: As Deputy Chief Leverton writes in his background memorandum, A 2021 Ford Explorer Police squad car was recently significantly damaged in a crash. A replacement is requested in order to retain the minimum number of front-line Patrol vehicles.

The City’s insurer will reimburse the City with $21,500 for the damaged squad car and will also provide $4,500 for the cost of the damaged upfitting equipment and installation of the standard patrol vehicle striping on the new vehicle. Some existing upfitting items can be transferred from the wrecked vehicle, with only the push bumper and various hardware parts needing replacement.

Currently, the City has a commitment from Galena Dodge of Galena, Illinois to honor the 2023 Illinois Central Management Services (CMS) contract for one 2023 Dodge Durango as a replacement for the 2021 Ford Explorer. Utilizing this purchasing cooperative enables the City to purchase vehicles in the most cost-effective manner. In addition, a 2023 Durango is being offered at $33,843 instead of its $42,575 state bid contract price, due to minor body damage the vehicle sustained while initially enroute to the dealer. This damage has been repaired, and the vehicle retains its full warranty. The vehicle is still brand new with just 57 miles on the odometer. This vehicle will likely last five years in front-line service.

Funds for purchasing this vehicle are scheduled to be drawn from the Liability and Property Insurance Fund (700-00-00-69100). Insurance reimbursements received for the wrecked vehicle and replacement parts will then be applied back to that fund. The remaining balance will be drawn from the Interest Revenue Fund (110-00-00-87010, Police Vehicles & Upfitting).

The total transaction is as follows:

One (1) 2023 Police Package Dodge Durango $33,843

License and Title Fee $ 165

Upfitting Costs $ 3,500

Squad Car Striping $ 1,000

Total Replacement Cost $38,508 

Anticipated Insurance Reimbursement for Vehicle $-21,500

Anticipated Insurance Reimbursement for Upfitting Costs & Striping $ -4,500

Trade-In Value for 2013 Chevrolet Impala $ -2,000

Anticipated Net Cost to City $10,508 

City Council approval of the contract with Galena Dodge is recommended.

K. ORDINANCES – SECOND READING 

None. 

L. ORDINANCES – FIRST READING 

None. 

M. REPORTS AND COMMUNICATIONS 

1. Council Member Reports. 

2. City Manager Report. 

N. EXECUTIVE SESSION 

1. Approval to Hold an Executive Session Meeting to Discuss Personnel as Provided for in 5 ILCS 120/2(c)(1). 

O. ADJOURNMENT 

https://www.cityofdekalb.com/AgendaCenter/ViewFile/Agenda/_10272025-2763