Pruyn: Itasca sales tax hasn’t rebounded

Itasca Village President Jeff Pruyn said Monday that residents must consider several measures to make up for an approximate $3 million annual drop in sales tax since 2008, or face serious cuts in village services.

During the annual Shape of Itasca address at the Holiday Inn, Pruyn and village leaders from the library, fire and park districts and Itasca School District 10 discussed developments and challenges happening in Itasca. But Pruyn’s breakdown of village finances and options to boost them received the most podium time.

“We have waited three years for our sales tax to rebound,” Pruyn said. “It’s become apparent for us that sales tax is not going to come back.”

Of the village’s approximate $9.15 million in annual revenue, sales tax makes up the lion’s share at $4.4 million, Pruyn said. To put this in perspective, Pruyn said the police budget alone runs $5 million.

He floated four proposals, including implementing a 5 percent tax on electricity and natural gas, a 1 percent food and beverage tax or charging residents for waste disposal services. Pruyn said village leaders also are considering putting a referendum on the spring 2012 ballot to ask residents to approve a quarter-percent sales tax or to make Itasca a home rule community. Making Itasca a home rule community, he said, would free up $900,000 per year in hotel tax revenue funds that can only be used to promote tourism or overnight hotel stays.

“Hotel tax has extensive state limitations,” Pruyn said. “These funds are why we can have so many fests … we can’t use it to fix potholes in the street or pay the administrative staff. Home rule communities are allowed to use these funds for roads, police and village expenses.”

The audience showed little reaction during Pruyn’s remarks, and several dozen questions submitted anonymously focused primarily on concerns like parking and shoveling ordinances, building, sidewalk and street repairs, fees for seniors to use the Itasca Park District walking track and noise issues stemming from O’Hare International Airport.

Other speakers included Itasca Fire Protection District Treasurer Michael Sullivan, who discussed personnel changes including new fire Chief James Burke; Linda Aiani, president of the Itasca Park District board of commissioners, who announced the village will transform the Historical Depot Museum into the Itasca Historical Museum as part of a project that will cost roughly $500,000; Itasca library board President Maxine Swanson, who discussed program developments, community partnerships and new displays at the library; and Kathryn Miller, Itasca District 10 school board president.

Miller discussed academic achievements at the district’s three schools, as well as program and pay cuts instituted for the current school year to ease budget shortfalls.

As a result, she said, several programs not mandated by the state, such as art and music, will continue next year.

She added, however, that all three schools will need several million in repairs for in upcoming years.

“Please be reminded that Itasca School District 10 has not come to you for a tax increase in more than 20 years, but there are challenges ahead,” she said.