Mount Prospect sales tax rate going to 8.75 percent

Mount Prospect village board members were expected to wait at least one more meeting before voting on raising the home-rule sales tax.

Instead, trustees Tuesday, influenced by the recent storm and feeling the need to prepare better for future events, went ahead and voted in favor of the 33 percent hike.

Beginning in January, the home-rule sales tax will increase from .75 percent to 1 percent, bringing the overall sales tax rate for general merchandise to 8.75 percent.

The tax was increased to generate money for mid-level capital improvements. The quarter percent is expected to generate $1.3 million.

In voting nearly unanimously -- Trustee Michael Zadel was absent -- the board rejected such alternatives as cutting personnel and programs.

Finance Director David Erb said cutting 13 staff positions would generate about $1 million. And Village Manager Michael Janonis said funds could also be raised by cutting such programs as human services, cable television, civic events and the traffic unit.

But Trustee Tim Corcoran said the storm has taught the village the need to be better prepared for future emergencies. He said there will be a need for such items as backup power units at key buildings, noting, "(The public works building) did not get affected by the power outage."

Many of those items would come from the capital fund.

The only trustee to vote against the increase was Paul Hoefert. Hoefert said there is a need to build up funds for responding to emergencies. But he said, "This event (the storm) should not be the reason we raise taxes."

Hoefert added, "I don't like trotting out the fear factor," by talking about cutting programs. "In light of the emergency that we just went through and the serious costs that we're going to incur, I still think this decision is premature."

Hoefert said he would rather see the village step back and examine capital programs and projects and see what is absolutely necessary.

But Trustee Richard Lohrstorfer agreed with Corcoran, pointing out as well, "We have been very prudent. This has never been a board to just throw money around."

Trustee A. John Korn said the solution to funding mid-level capital improvements is not moving one pile of money to another or cutting programs.

"We need a permanent capital improvement fund," he said. "To keep putting it off I don't think it is in our best interests."