Higher property assessments fueled by solar developments and other growth will push Galesburg District 205’s equalized assessed valuation up 7.64% for next year’s property tax levy, requiring a truth in taxation hearing that was held at Monday night’s school board meeting.
That’s as a state Property Tax Appeal Board ruling mandates the district must return hundreds of thousands of dollars to the defunct Cottage Hospital.
Jennifer Hamm, assistant superintendent for finance and operations, said the increase in EAV does not mean everyone’s taxes are going to increase 7.64%.
“This means the value of all properties in our community increased over 4.99%. And that triggers us then to have a truth in taxation hearing,” she said.
Anticipated revenue from the levy is $28.3 million, an increase of around $1.6 million. Hamm said the tax rate is anticipated to be $4.68, which is a slight increase from the previous year rate of $4.60, but below the district’s target of $4.71.
Hamm said it’s primarily solar developments in the area that are growing EAV, with every megawatt adding $186,000.
“Considering the solar fields that have gone online, that's quite a bit of EAV in our area,” Hamm said.
Some district funds, including IMRF and social security, will see larger levy requests this year. Hamm said the district under-levied in those areas to draw down balances, because those funds are not transferable. But the district now needs to replenish them to cover fiscal year 2026 and 2027 obligations.
Cottage Hospital tax rebate
The district’s financial picture also reflects lingering fallout from the former Cottage Hospital, which closed in 2022 following the loss of Medicaid and Medicare participation due to numerous patient care violations.
OSF HealthCare then purchased the property, which included multiple parcels.
Sanjay Sharma, the CEO of the former hospital, filed appeals for tax years 2021 and 2022, arguing for a reduction in the assessment of some of the parcels.
The Property Tax Appeal Board sided with Sharma. That means the school district saw $293,966 removed from its 2024 tax receipts and will see $316,865 taken from tax year 2025 revenues.
“That was a judgment by the board of review, so we have to comply with that order. And that's actually taken off before we even receive the receipts,” Hamm said.
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