Some residents may notice a significant year-over-year increase in the Schaumburg Park District portion of their most recent property tax bill. We understand why that may raise questions and want to provide some important context.
Last year, the Schaumburg Park District made an intentional decision to reduce its property tax levy by approximately $5 million by using accumulated cash reserves.
The District had built a strong financial position and determined that a portion of those taxpayer-supported reserves could responsibly be putback to work for taxpayers. This allowed the District to collect approximately $5 million less in property taxes for that year without reducing programs orservices.
Because last year's levy was intentionally reduced, it created anunusually low comparison point for this year's tax bill.
When last year's levy is adjusted to reflect what it would havebeen without the approximately $5 million one-time reduction, this year's increase would have been approximately 5% or less, depending on the levy component.
In other words, the unusually large year-over-year percentage is primarily the result of comparing this year's levy to a prior year in which the Park District intentionally collected approximately $5 million less from taxpayers.
Individual property tax bills are also affected by Cook County reassessments and changes in the overall tax base.
A property's assessed value increasing by a certain percentage does not mean its Park District tax will increase by that same percentage. What matters is how that property's assessed value changed relative to other properties within the Park District's tax base.
For that reason, individual taxpayers may experience increases that are higher or lower than the District-wide change.
The unusually large year-over-year percentages appearing on some tax bills should not be interpreted as the Park District deciding to increase property taxes by that same percentage.
Last year's intentional use of approximately $5 million in accumulated reserves reduced the levy for one year and created an unusually low comparison point. Viewed without that one-time reduction, this year's change would have been approximately 5% or less.
The Schaumburg Park District remains committed to responsible financial stewardship and providing high-quality parks, facilities and recreation services to the community.