Two of three Prospect Hts. candidates support police tax

City finances, flooding, fixing the crumbling infrastructure and government openness are what the candidates for Prospect Heights 4th Ward see as the most compelling issues facing the city.

Incumbent Alderman Jim Armbruster, former alderman Gerald Anderson and resident Mark Saulka are vying for the 4-year seat on April 7.

The candidates agree roads and storm sewers need fixing, and that the city needs new sources of revenue to plug budget deficits. But they have different views on the proposed police protection tax also on the April 7 ballot.

The police protection tax comes in the form of two questions on the ballot. One asks voters for an additional $1.25 million per year for the police department. The second question allows the city to raise the tax cap, which is the basic mechanism the city needs to collect any tax increase. It is not a second tax increase.

Armbruster and Saulka support the proposal. Anderson is against it because he says the city council cannot be trusted with the money.

Anderson, 65, was the 4th Ward alderman 1997-2004. He argues that the city could collect more money - up to $3.2 million - with the tax cap referendum.

"We have no mechanism of controlling where the money goes," Anderson said. "There is no document that they can write that's iron clad, that will lock in the money for a specific use.

"That being the case, you have to rely on the integrity of the city council. The city council can't even spell the word integrity. How do you think the city of Prospect Heights got into this deplorable condition? It didn't happen overnight."

Prospect Heights Alderman Richard Hamen said Anderson is wrong. Hamen said officials at one point did consider collecting anywhere from $750,000 up to $3.2 million, but decided against it.

"It was going to be unrealistic and would never have had a shot at getting passed," Hamen said. "We are going to be collecting $1.25 million for our police protection tax, in addition to what we (already) collect for the police pension fund. There is no more that we can get."

If approved, the tax cap referendum would allow the city to increase the 2009 levy 585 percent over the previous year, increasing the property tax on a single-family house having a market value of $100,000 by $108.

Saulka, an independent businessman making his first attempt at local elected office, said voters would likely deny the police protection tax under the current economic climate.

In November, voters overwhelmingly rejected the city's latest home rule request. Voters previously denied proposals to increase the sales tax and a police pension tax, but in 2004 approved a sales tax increase.

"It's going to be a tough sell," said Saulka, 52. "I'm going to vote for it as a resident. We desperately need it."

Saulka said the city should promote its available retail space to grow sales tax revenue, and find new revenue streams. He urged residents to pay their bills.

"Our fee and tax structure is at its maximum," he said. "I encourage residents to pay their city (vehicle) stickers, (animal) tags, and (building) permits. The city desperately needs that money. We could restore the funds, if we pass the police protection tax."

Armbruster, 62, a corporate attorney who was appointed to the 4th Ward in April 2008 to replace Pat Ludvigsen after he became acting mayor, said raising taxes through referendum is the city's only option.

He said the city has cut jobs and other expenses, and raised fees to reduce a once-projected $500,000 deficit in its general fund. The deficit is now down to $288 in the proposed 2009-2010 budget.

"There's about half the number of employees that there used to be," Armbruster said. "Someone has to pay the bill and now we have to pay the piper. This (police protection tax) referendum is only going to be a dollar a day for most homeowners."

Of the city's $60 million budget, around 60 percent of revenues goes for police protection.

Armbruster noted that the entire city council supported the police protection tax increase.

Armbruster and Saulka agree residents have gotten a free ride on services because the city collects next to no property taxes- about $240,000 a year. Yet, both candidates admit the city council has an image problem.

"I saw the divisiveness in the city council," Armbruster said. "Residents don't trust the city council."