Itasca committee suggests home rule tax cap

A committee of Itasca residents and business owners advised the village this month to seek home-rule status in the March 20 election, but on Tuesday they outlined a few stipulations.

Saying many residents are concerned about their property tax rates, the group asked the Itasca village board to self-impose a tax cap. This is because the additional legislative powers they may be granted under home rule could exempt Itasca from the cap that non-home rule communities must obey.

Leaders agreed and have already drafted a potential ordinance that says they can increase property taxes by no more than the rate of inflation in the national Consumer Price Index, or 5 percent — whichever is less. The only way to exceed this cap, according to the ordinance, would be if residents approve the measure through a referendum.

Currently, Itasca collects only about 6 percent of a homeowner's total property tax bill.

John Pankau Sr., the home rule committee leader, said the proposed ordinance will help soothe resident concerns before Election Day.

“Everybody is concerned about the ability to raise property taxes, even though the village portion is very small,” Pankau said.

In addition, the committee is also concerned with how hotel tax revenues would be used under home rule. Currently, the village collects about $900,000 annually in hotel tax revenue, but state stipulations say this money can be used only to promote tourism. Under home rule, the funds could be used for infrastructure improvements and other village necessities.

Pankau said the committee wants the village board to outline projects it would perform with the revenue.

“We want you to have identifiable projects, like if you're going to pave Bloomingdale Road or hire more police officers,” he said.

Simultaneously, however, the committee also wants Itasca to maintain its annual festivals that are currently funded in part with the hotel tax revenue. These include Itasca Fest, the Fourth of July fireworks, Oktoberfest, Itasca Art and Wine Festival, and the St. Andrew Society Scottish Festival and Highland Games.

Pankau did indicate residents might favor scaling back somewhat, but the committee believes the fests generate hotel stays and business for local vendors and improve the quality of life in Itasca.

“We don't want you to all of a sudden cut off all of that money that we're using for things people enjoy,” Pankau said. “Maybe we don't have to have the biggest fireworks display in Chicagoland anymore, but we still want to have a fireworks display.”