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Mt. Prospect trustees leaning toward smaller levy increase

A majority of Mount Prospect trustees are willing to vote for a lower increase in the property tax levy to be collected in 2015.

Now the question is how low they are willing to go. A public hearing on the budget is scheduled for Dec. 2.

The original recommendation by Finance Director David Erb was an increase of 4.42 percent, which would have brought the tax levy for the village's share of the tax bill - 11 percent - to $18,066,360.

Most of the trustees at Tuesday's committee of the whole meeting, however, seemed comfortable with Erb's new scenario of a 2.48 percent increase, which would bring the levy to $17,730,921. Erb said there would be no impact on the corporate portion of the levy or the village's reserves.

Erb said the figure could be reached by reducing the portion of the levy devoted to police and fire pensions by $218,493 and $116,946, respectively.

"I want to be clear that this doesn't mean we are underfunding the pensions in any way shape or form," he said, adding the funding for pensions in his original proposed levy was 7 percent - higher than the annual contribution required by the state. Erb said a 2 percent increase - which would produce a levy of $17,647,465 - would be possible by reducing the pension levy and revising expectations of sales tax revenues upward by $82,000.

He said a 1 percent increase - resulting in a levy of $17,474,450 - would be possible by adjusting the pension figures, revising the sales tax expectations and taking $171,000 from reserves.

Only Trustee Paul Hoefert preferred the 1 percent. Hoefert originally called for a lower levy increase to give something back to taxpayers in exchange for fee increases to fund road improvements.

"I really think that we need to provide ... some revenue gathering relief this year for the citizens of Mount Prospect," Hoefert said. "Last year we asked them to give more in a different way, through ... refuse collection fees, and we're raising some additional funds over four years and spreading that out."

Trustee John Matuszak said he favors an increase in the 1-2 percent range. He said he did not see large risk in the 1 percent option, although he expressed concern about the financial impact of a major weather event.

On the other end of the spectrum is Trustee A. John Korn, who said the village should stick with the originally 4.42 percent, citing the need for strong reserves for future needs.

"Because if we really need it and push comes to shove and our back is against the wall, that's where we go," he said.

Even those who would be willing to go with the 2.48 seemed uncomfortable with the reduction.

"The pension issue really scares me, for a lot of reasons," said Trustee Michael Zadel. "We have annually increased our contribution to our police and fire pensions, and (still) annually the total percent funded of those funds have gone down."

He added there is also a threat that state legislators might want to cut state money to municipalities.

Although Zadel leans more toward Korn's point of view, he said the 2.48 percent increase would be a "good faith effort to the residents who have been hard pressed, especially those on fixed incomes."

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