Irwin: Dealer's closing could mean major cuts in Fox Lake

Fox Lake Village President Cindy Irwin said the village will have some very tough choices to make now that another major sales tax revenue producer has closed.

Major cuts would be inevitable with Wednesday's closing of Fox Lake Ford on Route 12, Irwin said. It's the second car dealer to close shop on Route 12 in the village in the last five months.

Village employee layoffs would be among the future cuts considered, she said, but there is no guarantee any will occur.

"This loss is going to force the entire village board to make choices we never wanted to make in the past," Irwin said. "I never said layoffs weren't possible, but right now, we'll have to crunch the numbers and see what we can and can't do."

The discussion would most likely not happen until after the April 7 municipal election, she said.

Irwin is seeking re-election on the April 7 ballot against Trustee Ed Bender and former trustee Alberta Meyer.

Business vacancies and budget cuts are already the top campaign issues for the three village president candidates. All three candidates have said, if elected, they will work diligently to attract business while tightening the budget to reduce spending.

Fox Lake's main sales tax revenue is generated from boat and car sales, Irwin said. However, she added, both industries have been hit hard by the current recession.

Village administrator Nancy Schuerr said village sales tax revenue is down about 10 percent since May 2008, and the village collected $36,000 less in sales tax revenue since February.

Schuerr could not say how much total sales tax revenue the village has lost since May 2008 or how much more the village will lose because of car dealer closings.

In addition to Fox Lake Ford closing, Fox Lake Chrysler/Dodge pulled out of its Route 12 dealership in December citing sagging sales.