Carol Stream OKs sales tax hike

While Carol Stream residents will have to deal with an increased sales tax, they may get a break on stormwater fees.

At a special meeting before the regular village board meeting Monday, village Manager Joe Breinig said village attorney Stewart Diamond had advised against imposing a flat $3-per-month stormwater fee proposed to help reduce Carol Stream's budget deficit, because it would be difficult to prove what added service each resident would receive as a result of the fee.

However, after about a month of discussion, the village board did approve a 0.25 percent sales tax increase, which will take effect July 1, pushing salex tax in the village to 8 percent. The tax increase will not apply to food, drugs or automobiles.

Village President Frank Saverino said the sales tax increase was a tough pill to swallow, but a necessary one.

"The alternative would have been a property tax," Saverino said. "We have cut and cut and cut. We can only cut so much. We have to find a way to start raising money."

Carol Stream has never imposed a municipal property tax since becoming a village 50 years ago.

The added revenue from the sales tax increase is part of an effort to close a budget deficit that had reached $2.69 million. Breinig and Finance Director Stan Helgerson said the deficit in the $21 million budget now has been reduced to about $610,000.

In January, village officials proposed the sales tax increase and delayed purchase of new equipment to make up for the deficit. Also, a voluntary separation plan has been offered to employees.

Fifteen employees have expressed interest in the offer and 12 have signed contracts to go forward with the buyouts.

The move will save the village at least $400,000, Breinig said.

"We are working toward getting well," he said.