Dixon City Council OKs increased property tax levy

DIXON - The Dixon City Council approved a tax levy Monday that could increase property taxes in 2025.

The property tax levy for fiscal 2025 translates to a $33 increase for the owner of a $100,000 home, upping the city’s portion of their tax bill to about $791.

The city expects the actual tax rate to be lower than the projected $33 increase because the levy is calculated based on estimated assessed values. The final assessments won’t be completed until May 2025, Finance Director Becky Leslie said.

An updated estimated assessed value already “took us from going up slightly to being able to come down on the actual rate,” Mayor Glen Hughes said.

The city also expects the actual rate to be lower because the city is limited by a state tax cap.

State law limits how much most local taxing agencies can increase their property tax levy, tying the increases to the rate of inflation plus the value of new development. The inflation rate the city will be limited to is 3.5%.

About 45% of the property tax revenue will be used to fund the police and fire pensions, 27% will fund public safety, 13% for the Dixon Public Library, 10% for public works and 5% for workers' compensation and liability insurance, Leslie said.

“Our tax rate for the past few years has been lower than the 2013 tax rate so I do feel this is good for the city of Dixon,” Leslie said.

In 2013, the property tax rate was 2.4152%, Leslie said.

For the past six years the city’s tax rate has been steadily declining. In 2019 it was 2.5451% and in 2024 it dropped to 2.2109%, Leslie said.

She attributed some of it to an increase in value of homes in the city, but believes the city’s progress is what is pushing it down.

“I believe, especially in the past few years, it has to do a lot with the increase in our development that we’re seeing in the city of Dixon,” Leslie said.