Prospect Hts. seeks voter approval for police protection tax

Prospect Heights residents may be a bit puzzled when they see two questions on the April 7 ballot that together achieve one purpose: raising property taxes to fund the city's police department.

The city council Monday night unanimously voted to hold a referendum on whether to adopt a new police protection tax that would generate $1.25 million in additional revenue for public safety.

But first, the city needs taxpayer approval to increase property taxes beyond the limit of 5 percent or the Consumer Price Index stipulated in the state tax cap law for non-home rule communities. The tax extension must be approved for the police protection tax to be applied.

If voters approve both questions, the owner of a home with a fair market value of $100,000 would pay an additional $108 yearly, city officials estimate.

Council members debated the wording of the two ballot questions and whether the separate police protection tax request was needed at all.

Officials said the redundant second question authorizing a police protection tax is only to reassure taxpayers that the money will be used to supplement police services.

The police department operates on a roughly $4.5 million budget, with approximately 25 police officers to serve the city's 17,100 residents.

If approved by voters, the extra money won't mean increased police protection or staffing, but it would free up village sales tax revenue now used to fund the department, Mayor Pat Ludvigsen said.

"Although this tax will not pay for all of the police department, it will at least be a consistent stream of revenue, which then allows us to free up money for public works, salt, all these things that people expect us to address that we don't have the money to do so anymore," he said.

Over the years, the city has laid off people across all departments to balance its budget and now has 49 employees, including the police department.

"It's to the point now that we can't do it anymore," Ludvigsen said. "I just don't think that everybody in town understands the condition that we're in financially and they would be horrified if they knew how tight things are."

Alderman Dolly Vole stressed Monday night the city needs to assure residents that police service levels don't drop below where they are now.

But city council members fear the proposals could fail because voters may be confused by the mandatory legal language of the ballot questions.

Prospect Heights voters in recent years have voted down the city's two attempts to gain home rule powers, and proposals to increase sales tax and a police pension tax.

Officials acknowledged it will be tough to convince voters the two questions really mean one tax increase of 23.7 cents per $100 of equalized assessed valuation.

"This is going to be such a challenge on the part of this administration, to explain this to the populace," Alderman James Armbruster said.

At Monday's meeting, the city council also established a 1.5 percent food and beverage tax for restaurants, which does not require voter approval, and raised waste disposal fees by 10 percent.

Officials said the food and beverage tax would affect roughly 30 restaurants in town, but did provide an estimate of anticipated revenue.

Taxes: 1.5% food, beverage tax added