Hawthorn Woods considers tax hike for pensions

Hawthorn Woods may soon be asking taxpayers to fund roughly $161,000 for its police pensions.

The village's advisory finance committee next week is expected to recommend the village go for a tax increase referendum in November. Trustees will have the final say.

Committee Chair Doug Samz said the village is roughly $30,000 short in the annual contribution to the police pension fund that the state requires.

"This is the first time we've been short," Samz said.

Hawthorn Woods became obligated to fund police pensions after its population surpassed 5,000 residents. The village uses general fund revenues to pay into the fund, established five years ago.

The village is cash-strapped, having earlier this year laid off six employees - including three from the police department - and cut expenses to reduce a projected deficit.

The village also is short on funds to complete roughly $2.7 million worth of road improvements in 2009.

In 2001, Hawthorn Woods asked residents to support a tax hike to raise $70,000 to fund police pensions, but the measure was defeated by 183 votes.

If it goes to a referendum again and voters approve it, that would free up roughly $170,000 in general fund revenues yearly to possibly reinstate two fired police officers, Hawthorn Woods Mayor Keith Hunt said.

Hunt said even without a tax hike the village would be able to continue funding police pensions fully.

"It's not that we don't have the money," Hunt said. "The question is can we be doing other things with that money."

Trustee Steve Riess said the village is in worse financial shape than residents realize. Riess said he is not opposed to a referendum.

"But my fear is we're going to have to go to the well again and again and again for other stuff for the village and we will," Riess said. "This isn't the only place we're short."