Zion’s schools, parks, library and the city itself will receive an additional $82.5 million from the state of Illinois over the next 20 years for business development, infrastructure and other needs, but the biggest winners are individual taxpayers.
Their aggregate share will be $247.5 million.
For the past 12 years, Zion Mayor Billy McKinney said the city sought relief from the impact of the closure of the Exelon nuclear power plant. It initially arrived in 2021, when the Illinois Clean Energy Jobs Act (CEJA) allocated $330 million in property tax relief over the next 23 years.
After disagreements between some of the Zion area’s six taxing bodies about how to allocate the funds, the Illinois General Assembly passed legislation last week mandating 75% of the money be used to abate property taxes, and the remaining 25% for the governmental entities’ needs.
“This is a huge win for our community,” McKinney said. “It will stimulate economic growth in the city and assist our residents who have struggled since the closing of the nuclear power plant.”
Zion residents will be paying an average of $2,000 less in property taxes annually, and the area’s governmental entities will have an additional $3.75 million to spend on infrastructure and community development over the next 21 years as a result of the recent legislation.
Along with the taxpayers, the beneficiaries are the city of Zion, Zion Elementary School District 6, Zion-Benton Township High School District 126, Zion Township, the Zion Park District and the Zion-Benton Public Library.
As CEJA was being crafted in 2021, state Rep. Joyce Mason, D-Gurnee, said it was to help people and communities that were impacted by the closing of coal-fired power plants. She went to work getting the property tax relief added for Zion for issues related to the plant closing.
Though McKinney said the intent of the allocation was property tax relief for residents, differences of opinion arose with some of the taxing bodies on the allocation of the funds. There were varying needs and priorities.
In the closing hours of the 103rd Illinois General Assembly, Mason and state Sen. Mary Edly-Allen, D-Libertyville, worked to clarify the original CEJA language to assure taxpayers, not tax recipients, got the majority of the benefit.
“Now, the taxing bodies will have to abate 75% of the money to the taxpayers,” Mason said. “We cleaned up the legislation. We needed to fix it. It will mean a 20% reduction in property taxes — approximately $2,000 for the average homeowner.”
With the tax abatement essentially giving an increase in income to property owners, McKinney said they will receive some long-needed help with their daily lives.
“It will help in so many ways,” he said. “They can make repairs on their homes they have needed. It will help to buy the basic necessities like groceries. It will help with those struggling to pay for medication.”
David Knabel, Zion’s city administrator, said both the taxpayers and the governing bodies win. They will get their proportionate share of the 25% earmarked for them, which can help with economic development.
“This is a turning point for the city,” Knabel said. “It will allow us to grow, and develop, and compete economically with Wisconsin. It will help provide jobs and home development. It will take a burden off our residents, too.”
Jesse J. Rodriguez, the superintendent of District 126, said in a text the latest legislation “marks a crucial step forward” in an effort to provide tax relief to residents and businesses. He hopes it will be done quickly and efficiently.
“We are optimistic that property tax abatements will be seamlessly integrated into the grant process without the need for reimbursement, simplifying implementation and enhancing benefits for our community,” Rodriguez said.
District 6 Superintendent Julious Lawson said in an email Friday that district officials are looking closely at the recently passed legislation to determine its impact. They are assessing its inferences. They will “act responsibly to our students and community stakeholders.”
“Regardless of the impact this legislation change may present, (the district) will remain dedicated to delivering exceptional education and providing the greatest possible outcomes for our students,” Lawson said.
Mason said in addition to people living in Zion, individuals living in Winthrop Harbor and parts of Wadsworth and Beach Park will receive some of the benefits since children there attend Zion-Benton Township High School and the District 6 elementary and middle schools.