Mt. Prospect weighs size of property tax increase

Mount Prospect Finance Commission Chairman Vince Grochocinski presented his commission's 1 percent solution for property tax relief before the village board Monday night.

Now it is up to Finance Director David Erb and village staff to examine whether a lower increase in the village's portion of the property tax - 11 percent of the entire bill - than the 4.42 percent recommended by Erb is feasible.

Mayor Arlene Juracek, with the consensus of the village board, told Erb toward the close of a marathon five-hour committee-of-the-whole budget session, "Let me suggest that we come up with a 1 percent case and a 2 percent case and see what you would recommend."

Erb has recommended that for taxes collected in 2015, the village levy $18.06 million. This would increase the tax bill for the village's share from $1,111 to $1,155 for a home with a market value of $350,000, according to village projections.

But Trustee Paul Hoefert has been suggesting a lower increase as a way of giving back to taxpayers hit by recently increased fees to fund road repairs.

Grochocinski, head of the finance advisory committee made up of town residents, agreed. "I think it's very reasonable to give people a break on the real estate taxes."

To limit the increase to 1 percent the village needs to cut $600,000 in expenses or find that amount in revenue.

Grochocinski said the village could limit salary increases for non-bargained staff to the Consumer Price Index increase, or 1.7 percent, rather than the 2 percent proposed, saving $25,000; project that sales tax revenue will grow 5 percent, generating $500,000; and project that Randhurst Village, which is currently owned by a bank, will be sold, generating $450,000 in real estate transfer taxes. He noted as well that expenses consistently come in under budget due to staff vacancies and other factors.

Reaction from the board ranged from praise from Trustee Richard Rogers for the commission's thinking out of the box to concern from Trustee Michael Zadel about future impact on the village's finances.

Zadel warned that the state could seriously reduce the amount of money it distributes to communities. "If something went haywire with the percentage that we receive both from sales tax and from income tax, it could have a devastating effect on our budget," he said.

Hoefert said, "I'm not sure we can get to the 1 percent. But I would sure like to see some compromise between 4.2 and 1 or zero that's for sure."

As for relying on the Randhurst sale, he said, "Just take that out. You are never going to know if that's going to happen or not."

Trustee Steven Polit said that a 4.42 percent increase would amount to an extra $3.60 per month, whereas a 1 percent increase would be 90 cents. "Isn't it wonderful that we can sit here and talk about $2.70 a month for more than an hour?" Polit said.

But resident Jerry Boldt said 4 percent tax increases are not sustainable and that the village portion of his tax bill last year rose $166, and in the year prior $146. "There's nothing close to $44 or $30 dollars or anything like that on my bills," he said. "Please note that your spending plans may be in good conscience, but you don't seem to realize the harm that you have and are still causing the taxpayers of Mount Prospect, especially those of us on fixed incomes as well as those on reduced incomes, due to the recession."