Sleepy Hollow again considers seeking tax increase

Sleepy Hollow again will ask residents to approve a property tax hike in April.

Voters in November overwhelmingly rejected the village's request for an 82 percent property tax increase that would have nearly doubled what they now pay. The village sought to collect an additional $478,571 yearly from its more than 3,300 residents.

Village President Stephen Pickett said officials are considering asking for the same amount April 7.

Pickett said he believes the request failed in November because officials didn't do a good enough job of educating voters. The vote was 1,089 against and 231 votes in favor of increasing taxes.

"I can't say I was honestly surprised by the vote," Pickett said. "There was not a lot of educational opportunities coming forth for the residents to get their hands on information. That's going to be rectified this time around."

Officials could include information in the village newsletter, put out fliers and mailers, organize town hall meetings and community coffees, and even go door-to-door, Pickett said.

Officials say the money is needed to meet long-term capital expenses, such as buying police squad cars and equipment, dump trucks, snowplows, and for building maintenance.

The village operates on a $1.3 million yearly budget, and typically maintains a fund balance. It had roughly $2.1 million in cash and investments at the beginning of this fiscal year, and its five-year capital fund is expected to be depleted in about four years to about $65,000, officials said.

Officials anticipate costs increasing over the next five years across various departments: administration, $10,000; police, $180,000; parks and recreation, $50,000; village property maintenance, $202,000; and streets and highways, $199,000.

The village's sales tax revenue is expected to decline starting in 2016 after a sales tax-sharing agreement with Elgin for Randall Road businesses expires.

Pickett said he expects more voter turnout for the April municipal election, which might help the cause.

"We've got trustees that will be running so there will be some interest in it," he said.

The referendum likely will become an election issue for the three incumbents - Scott Finney, Dennis Fudala and Joseph Nemec - who are up for re-election, should they choose to run, Pickett added.

The village board is expected to review the referendum question Monday. If the request stays the same and is approved, the owner of a $200,000 home would pay roughly $310 more in property taxes in 2015.