DeKalb holds 2026 tax levy at $8.9 million

The DeKalb City Council voted to adopt a 2026 aggregate property tax levy of $8.9 million. The vote confirms that the city will not raise its portion of the local tax rate for next year. City Manager Bill Nicklas presented the budget to the council after two fall workshops.

A key change involves how the city pays for police and fire pensions. In most years, the full levy covers these obligations. This year, the levy is short. Nicklas stated, "You can see that that’s not enough to pay for the full obligation this year." To close the gap, the city will transfer about $2.2 million from its general fund reserve.

For the average homeowner, the tax bill remains stable. A property with a base equalized assessed valuation of $157,229 in 2026 would pay $957.56 in city property taxes. The tax rate for this valuation is 0.58. This figure excludes other entities that appear on the bill, such as DeKalb School District 428, DeKalb County, and Kishwaukee College.

Mayor Cohen Barnes supported the plan to keep the levy flat. He explained that this approach avoids taking more money from residents. "What that means is we have chosen to not take one more dollar in our levy from the public," Barnes said. He added that the city aims to be responsible in its governance while considering taxpayer needs.

The approval concludes the city's budget process for 2026. The use of reserve funds allows the city to maintain current service levels without increasing the tax rate for homeowners or businesses.