Mt. Prospect OKs $112.5 million budget that includes small tax hike

Mount Prospect village trustees on Tuesday passed a $112.5 million budget for 2016, along with a property tax levy officials say will lead to a small increase in residents' property tax bills.

The $18.3 million levy is up about 3.3 percent over last year's levy. It means the owner of a home valued at $350,000 would pay the village $1,178 in property taxes next year, about $37 more than in 2015, officials say.

Water rates also will rise 5 percent under the spending plan, a result of water rate increases from Chicago, which provides the village with Lake Michigan water.

The total village budget is 10.7 percent lower in 2015, much of which Finance Director David Erb attributed to the completion of significant capital projects, such as the approximately $9 million Isabella Drainage Improvements Project.

Among the new expenses for 2016 is the hiring of six firefighters and four community service officers for the police department - two full-time and two part-time.

Erb cautioned, however, that the state budget situation could eat into expected revenues.

"We are taking into consideration the state budget impacts," Erb said. "It may result in pulling back of some revenues."

That could mean delays in the hiring of the two full-time community service officers and deferring expenses related to the village's vehicle replacement program.

Erb said the state has agreed to release motor fuel tax and other revenues that had been withheld as a result of the budget impasse. The motor fuel tax funds amounted to $110,000 per month, he said.

Trustees had harsh words for the state regarding the release of the funds.

"That's not the state's money. That's our money," Trustee Paul Hoefert said. "They're holding our dollars hostage. It's a hostage situation. They just decided to release some of our hostages."