16 percent property tax hike? Des Plaines may prefer it to telecom tax

Most towns like to brag about how low they keep property taxes.

But one suburb is considering moving away from a phone-tax increase and a new sewer fee in favor of a 16 percent property tax increase.

So, why are officials in Des Plaines eyeing such an increase?

As a city trying to build its reserves to prepare for emergencies and finance new public safety buildings, Des Plaines knows it must collect more money.

Flooding and damage from the devastating August storms cost the city more than $2 million -- and the check came from Des Plaines' reserves.

To raise the money it wants to strengthen its reserves, the city will have to take in an extra $2.5 million next year.

A telecommunications-tax increase and new sewer fee have been proposed for next year.

A property-tax increase, however, should be the favored approach since homeowners can deduct it on their federal income tax returns, 8th Ward Alderman Rosemary Argus said.

Argus said she wants to do what's best for residents even if this isn't a politically popular move.

"It could be that it wouldn't be that bad, and then you'd have the advantage of taking it off your income tax," she said.

A 10 percent increase on the city's portion of the property tax bill for someone who pays $600 would be only $60 more, Argus said.

Des Plaines aldermen this month narrowly voted to double the telecommunications tax from 3 percent to 6 percent, which would raise an extra $1.5 million every year. By the time it takes effect, the increase would bring the city $381,249 next year.

Aldermen also decided to create a sewer fee to bring the city $2.1 million next year. The fee would be 70 cents for each 100 cubic feet of water, or about $90 a year for the average Des Plaines homeowner.

Acting City Manager Jason Bajor is figuring how much the property tax would have to go up to raise the same as the previously approved fee increases. That number is expected before aldermen approve next year's spending plan at the council's regular Dec. 3 meeting. At a budget hearing, he estimated it could be 16 percent.

Besides the need to rebuild reserves, major public safety projects also are fueling the city's need to raise money.

Nearly $11 million will be spent next year on plans to add a new Des Plaines police headquarters and build at least one new fire station.

Aldermen this month approved spending $10 million to replace the city's 33-year-old police headquarters next to city hall, 1420 Miner St. They also voted to spend $745,000 to design a new fire station, and plan the renovation of the River Road station.

Because the projects will be financed with bonds, the buildings would be paid for over a 26-year period.