Lake Zurich official calls tax plan a tossup

A proposal to increase Lake Zurich's sales tax by half a percentage point probably stands a 50-50 chance of passing on Election Day, Village Administrator Bob Vitas said Thursday.

“It's a tossup right now, Vitas said during an hourlong discussion at Daily Herald's Lake County office. “My guess is, people have already formulated an opinion.

Vitas and two other village officials Public Works Director David Heyden and Finance Director Al Zochowski talked about the referendum during an editorial endorsement interview.

The proposal on the Nov. 2 ballot would raise the sales tax on most retail goods purchased in the village to 7.5 percent. If the tax is approved, it could raise between $1.8 million and $2.2 million annually for the village.

Most of that money would be used to resurface roads throughout town, and to pay for simultaneous sidewalk, curb and sewer work, Heyden said.

Funds generated by the tax also would pay to replace aging ambulances, police cars, snow plows and other village vehicles, Zochowski said.

If approved, the tax hike would become effective in July 2011. The village would start receiving revenue from the tax the following month.

Village leaders already are eyeing some roads for repairs. If the sales tax is approved, projects will be assigned based on the time since a road last was resurfaced, a road's condition and appearance and its structural integrity, Heyden said.

Vitas believes residents in older neighborhoods with streets in need of repair will support the proposal. Residents in newer neighborhoods with streets in better shape may not, he said.

“If you're living on a street that was just dedicated by a developer two years ago in Coventry Creek, are you going to be inclined to vote for something (that) you won't see the road-improvement benefit of for 20 years? Probably not, Vitas said. “Each individual taxpayer makes a decision based on their personal need and their personal financial situation.

The village can't afford the repairs and purchases with its current revenues, Vitas said. Nearly two dozen workers have been laid off in recent years as cost-saving measures.

During the last round of budget talks, officials looking to save money went as far as to debate eliminating village-funded coffee for staffers a step they eventually took, he said.

“That's how deep we cut, Vitas said.

Employees have accepted salary freezes and costlier health insurance premiums as ways to save the village money, Vitas said.

Officials opted for a sales tax because it also would be applied to nonresidents, unlike vehicle stickers or other dedicated taxes. Residents in other communities shop in Lake Zurich and drive on its roads without paying property taxes to the town, and this is a way for them to contribute to the maintenance of those roads, Zochowski said.

If voters reject the sales-tax increase, services will be cut and more layoffs will be necessary, Vitas said. Private contractors could be hired for tasks such as snow removal and street sweeping, he said.

“We appreciate (residents) want all these services, but please recognize it comes at a cost, Vitas said. “And those costs have gone up.