Manager: Property tax was last resort

The Village of Schaumburg has not levied a municipal property tax since incorporation in 1956. Schaumburg has relied on visitors to pay for police, fire, public works, regulation and permitting services along with their support systems.

With stable and visionary elected leadership, quality local services have provided a foundation for successful businesses, superior schools and award-winning library and park districts.

Today's slump in retail sales brought on by the worst recession since the Great Depression has caused Schaumburg to face a projected $17.6 million General Fund deficit for the fiscal year beginning May 1, 2010. This deficit represents over 20 percent of the General fund.

To close the gap with cuts the Village would have to lay off 25 percent of its full time employees. Since we are already at minimum staffing levels in police, fire and public works, village services would be decimated.

Since 2003, 98 full-time (over 15 percent of our work force) and 38 part-time positions have been eliminated. Nonunion wages are frozen, and employees now pay double their previous amount for health care. Programs have been eliminated and funds are no longer being set aside for building repairs. Reserves have been used to try and outlast the recession.

It has been suggested that the Village should sell the convention center and hotel, the airport and the baseball stadium. Doing so would be impractical and unproductive. With few exceptions these assets have little impact on the General fund, and their sale would not be a timely response to this crisis, nor would it benefit the Village in the long run.

Nobody likes to pay taxes. Passage of the first ever property tax would still place Schaumburg below neighboring property tax paying communities with the exception of Elk Grove. It's a tough decision, but a necessary one.

Ken Fritz

Village Manager

Village of Schaumburg