Hawthorn Council Freezes Property Taxes, Credits Water Bills This September

The Hawthorn City Council on July 7 approved a two-part package that freezes the residential property tax rate for fiscal year 2027 and creates a $1.2 million utility credit program. The actions directly affect the annual municipal bill sent to every property owner in the city limits.

Local government revenues have faced pressure from rising contract costs for solid-waste hauling and water treatment chemicals. The council drew on its most recent budget document, which projected a 4.8 percent increase in those line items, before deciding to offset part of the burden through the credit rather than a rate hike.

Changes to Resident Payments

Under the approved plan, the municipal services levy remains at $1,184 per average single-family home. The new credit will subtract $78 from the water and sewer portion of the bill for households with assessed values below $425,000. City staff estimate 14,800 properties meet that threshold.

Residents who receive the credit will see the reduction applied automatically on the September billing cycle. Those who pay property taxes through an escrow account will receive the adjustment as a credit on their next tax statement rather than a separate check.

Next Steps for Implementation

City finance staff will mail notices to all affected addresses by August 15. The program sunsets after one year unless the council votes to renew it during the 2028 budget process. Public records from the meeting show the vote passed 6-1, with the single dissenting member citing concerns over long-term fund balances.

Local advocates note that the freeze and credit together reduce the average household outlay by roughly 3.2 percent compared with the increase originally modeled in the preliminary budget. The legislation states that any unspent credit funds will return to the general reserve at the end of the fiscal year.