City news
Budget by the Numbers: Understanding West Chicago’s 2026 Budget
West Chicago’s 2026 Budget reflects long-term planning, careful spending, and a strong local economy. While the City has already published Investing in a Stronger, More Connected West Chicago in 2026, which focuses on projects and community improvements, this article explains the key financial facts behind the budget and what they mean for residents and business owners.
A Growing Tax Base That Strengthens the City
Property values in West Chicago have grown significantly over the past decade. Total Taxable Assessed Value has increased by 87.1%, rising from $568 million in 2015 to $1.06 billion in 2024. This growth reflects continued investment, redevelopment, and confidence in the community.
As property values increase, the cost of providing City services is shared across a larger tax base. Over time, this helps reduce the relative tax burden on individual property owners.
A Lower City Tax Rate for Property Owners
As the tax base has grown, the City’s portion of the property tax rate has declined. The Total Direct Tax Rate has dropped 22.5%, from 0.6031 in 2015 to 0.4671 in 2024. This trend reflects long-term financial discipline and steady planning.
For 2026, the City continues its standard 4.9% levy increase. Because assessed values continue to grow, the projected 2026 City tax rate of 0.4479 is expected to be slightly lower than the 2025 rate of 0.4671. This helps limit the impact on property owners while maintaining essential services.
What This Means for a Typical Homeowner
With a median home value of $370,000, the projected rate change would result in an estimated $23.68 decrease in the City portion of the property tax bill.
It is also important to understand how the total property tax bill is divided. The City accounts for about 5% of a resident’s total property tax payment. Schools receive the largest share at roughly 71%.
Keeping Operating Costs Under Control
In developing the 2026 Budget, the City worked to balance the cost of providing services during a period of rising costs for materials, services, and staffing with the community’s desire to limit additional taxation. This included carefully managing operating expenses while evaluating potential revenue sources. After reviewing those options, the City chose not to implement a local grocery tax or increase the Home Rule Sales Tax.
As a result of this balanced approach, the General Fund increase for 2026 is 2%, which is below inflation. By aligning responsible spending with careful revenue decisions, the City is able to support essential services and continue investing in long-term improvements that benefit the community.
Understanding City Funds
West Chicago manages its budget using different funds. Each fund is designed to pay for specific services or projects. This structure helps ensure that money is used as intended and that essential services remain reliable.
Some funds support daily City operations, such as public safety, administration, and community services. Other funds are dedicated to long-term investments like roads, buildings, and public infrastructure.
Water and sewer services are managed through separate utility funds. These funds are supported by user fees, not property taxes. This means water and sewer rates pay for system maintenance, upgrades, and long-term planning. Utility funds cannot be used to pay for other City services, and property taxes are not typically used to cover utility costs.
Managing funds separately allows the City to plan responsibly, maintain stable services, and reduce the risk of unexpected costs for residents and businesses.
Where City Revenue Comes From
West Chicago relies on a mix of revenue sources to fund City services and long-term investments. These include property taxes, utility fees, shared state revenues, permits and licenses, contract services, and grants. No single source supports everything.
Some revenue sources are restricted by law and can only be used for specific purposes. For example, the Police Department receives revenue from fines, fees, grants, and drug asset forfeiture funds. Fees and Fines support public safety efforts such as traffic enforcement, equipment, and technology, but Drug Asset Forfeiture funds cannot be used to pay for general City operations or other budgeted expenses.
The City receives revenue from contract services, including agreements with local school districts, which helps offset the cost of shared services.
Grants and other external funding play an important role by supporting projects such as infrastructure improvements, planning efforts, and community amenities without relying solely on local tax dollars.
Using a balanced mix of revenue sources helps the City remain stable, flexible, and prepared for future needs.
Strategic Investments in the Community
The 2026 Budget directs new funding toward areas residents and businesses have consistently identified as priorities through community surveys, public feedback, adopted plans (e.g. Comprehensive Plan), and City-led studies. These include downtown revitalization, economic development, modern and accessible improvements to digital services, and infrastructure upgrades in job-supporting areas of the community. These investments help improve quality of life while strengthening West Chicago’s long-term economic foundation.
Investing in Infrastructure for the Future
The 2026 Budget also addresses long-standing infrastructure needs. Funding is directed toward improvements in industrial parks and other areas that require ongoing maintenance and reinvestment. These upgrades help ensure safe access, reliable utilities, and continued support for local employers. Planning ahead for infrastructure needs helps the City avoid costly emergency repairs and ensures services remain dependable.
Financial Stability That Protects Services
Strong property value growth, a decreasing City tax rate, and controlled operating costs work together to protect essential services. This balanced approach allows the City to invest in the future while maintaining the services residents rely on every day.
Learn More
Residents and business owners who would like more detail can review the full budget document approved by the City Council and supplemental budget presentations available on the website. These materials were discussed as part of the budgeting process during City Council meetings on August 13, September 15, October 6, and October 20, 2025.