Voters like sales-tax plan in Lake Zurich

Lake Zurich voters approved the creation of a new, half-percent sales-tax on Tuesday.

With votes in all 17 precincts counted, unofficial results showed 3,412 people favored the proposal, or nearly 55 percent. The “no” votes totaled 2,825, the unofficial results showed.

The proposal will raise the sales tax on most retail goods purchased in the village to 7.5 percent. It could generate between $1.8 million and $2.2 million annually for the village, officials have said.

Village leaders want to use the money to resurface roads throughout town, and to pay for simultaneous sidewalk, curb and sewer work.

It also would raise money for new ambulances, police cars, snow plows and other old village vehicles.

Village Administrator Bob Vitas, who's overseen significant cutbacks in Lake Zurich's municipal budget in recent years, said the proposal's success takes a great weight off his shoulders.

“(We) will continue to carefully move the finances of the village forward and deliver to all residents what they're entitled to and that's good, quality infrastructure,” Vitas said Tuesday night.

@NormalParagraphStyle:The tax will become effective in July 2011. The village should see revenue from the tax the following month.

Officials floated the plan to voters because sales-tax revenue is generated by residents and nonresidents, unlike the cash from vehicle stickers or other dedicated taxes.

The village can't afford road repairs and vehicle purchases with current revenues. As has been the case in other suburbs, nearly two dozen municipal workers in Lake Zurich have been laid off in recent years as cost-saving measures.

Without the additional sales-tax revenue, village services likely would have been cut and more layoffs would have been necessary, officials said.

“We knew we could not sustain the infrastructure requirements of the village while trying to balance (other needs),” Vitas said.