Lake Zurich officials say home rule would give them financial flexibility
Lake Zurich officials took a home-rule presentation on the road Friday, saying voter approval of a Nov. 4 referendum question on home rule would give the village flexibility to raise money for basic services.
The village needs to resurface some streets and make stormwater improvements, officials say, and a $3 million tab to combat the emerald ash borer has stretched the village's budget.
But while a sales tax increase or creating a village gas tax are possibilities if the measure is approved, there are no preferred options to raise revenue nor a priority list for village services to fund, Mayor Tom Poynton and Village Manager Jason Slowinski agreed.
"The bottom line goal for us is to put us in a position where we could tap additional revenue sources. This is not a blank check," Poynton told 17 people at the weekly meeting of the Rotary Club of Lake Zurich.
"You still have to go through the discussion with the community. ... The point is, flexibility is what comes with it," Slowinski added.
The pair gave the presentation Wednesday to about 75 people at the Ela Senior Center, and a public forum is scheduled for 7 to 9 p.m. Oct. 22 at the Ela Area Public Library. Information and questions and answers are posted on the village website, lakezurich.org, and residents can submit questions.
Communities automatically are designated home rule when the population reaches 25,000. In Illinois 211 locales fit that description. Towns such as Lake Zurich, which has just under 20,000 residents, can become a home-rule community through voter approval.
Home-rule communities have the authority to implement various taxes, and state-imposed limits on the property tax levy - restricting increases to 5 percent or the rate of inflation, whichever is lower - do not apply to them. The inflation rate is now 1.7 percent.
Lake Zurich officials say they want the flexibility to raise revenue from sources other than property taxes.
"We have committed to maintaining the tax cap ... even if we are a home-rule community," Slowinski said, citing a village board vote in August.
Lake Zurich receives about 13 percent of the average property tax dollar. Officials say they don't have many other options to raise money for village services.
Plus, the village has suffered from less money coming from the state, unfunded mandates and the village's outstanding debt for a downtown financing district, Slowinski said.
Business owner Nancy Needham said she was leaning toward supporting the measure.
"Ï thought this (presentation) was exceptionally informative," she said,
"As a resident of Lake Zurich, I want them to have more leeway," said Bill Reavis, a futures broker.
The Lake Zurich Area Chamber of Commerce has not taken a position on the issue, but the Mainstreet Organization of REALTORS opposes it.
The promise of village leaders to hold the line on property taxes is symbolic, as this village board or a future village board would not be legally bound to do so, said Howard Handler, government affairs director for the organization.
He added home rule often leads to more regulations, higher taxes and new fees, and the village hasn't offered any specifics of what would be done if the measure is approved.