Mount Prospect board considering no increase in tax levy

The Mount Prospect village board is zeroing in on a tax levy that should sound good to residents.

At Wednesday's village board meeting, the majority of the trustees said they favor a zero-percent increase. Four trustees, Paul Hoefert, William Grossi, Eleni Hatzis and Richard Rogers, said they are on board.

"I have always thought of this year, especially looking at the budget, looking at the numbers you provided us, that zero is the number," Grossi said, noting the village's healthy reserves.

If the board approves it, the levy would remain at a little more than $19 million, while the taxpayer who owns a house valued at $350,000 would pay $1,105 to the village, which accounts for 11 percent of the property tax bill.

The village's finance commission also recommended a zero percent increase. The board has yet to vote on the budget and tax levy.

In the past, Hoefert has been in the minority on the issue. He repeated his view the village should try to reach zero percent not only when times are bad, but when they very good and the general fund is well funded.

Reserve levels have exceeded village expectations, with total balances at the end of the year projected at $42.4 million. The general operating fund reserve balance is expected to be $19.4 million.

The village plans to use $1.9 million in cash reserves transfers of $750,000 for capital improvements, $790,000 to abate the tax levy for debt service and $420,000 to abate the levy for police and fire pensions.

Finance Director David Erb had recommended a levy of $19.4 million, a 1.66-percent increase. Erb said the projected increase had been 3.92 percent, but the village realized savings from a bond refinancing and better-than-expected returns in the public safety pensions.

"I think we have got to show that we're willing to give the citizens of Mount Prospect as much of a break as we can on taxes," Rogers said, pointing out residents are getting hit from other units of government in the state.

Trustees Colleen Saccotelli and Michael Zadel said they are still weighing the pros and cons of the proposed levy.

Zadel said he is concerned about the financial impacts from the state and the federal government.

"I don't know if doing it now when times are good is going to help us out later when times are bad," Saccotelli said.

At Wednesday's meeting, Erb presented a proposed budget of $162 million, an increase of more than 28 percent. The increase is primarily due to capital improvements, higher pension payments and more debt related to the new police and fire headquarters projects.

The general fund operating fund would increase by 4.1 percent to $57 million.