Utility tax moves forward in Antioch

Expressing regret and concern for the impact on residents, Antioch village leaders have taken a major step toward imposing a utility tax to shore up the town's finances.

"The timing is terrible and it puts a unique burden on our residents," said Trustee Dennis Crosby. "It's the perfect storm that is coming at us from all directions."

If the plan is approved, residents will pay more for natural gas, electricity and telecommunications - none of which are currently subject to a village tax. Village Administrator Jim Keim said the taxes would raise at least $1 million annually. Keim estimated the cost to the average homeowner to be about $12 per month. A typical business would see an increase of nearly $50 per month, but larger businesses would see higher costs.

The board voted five to one in favor of accepting the first reading of the new tax scheme during its meeting Monday night. Trustee Scott Pierce cast the lone opposing vote. Mayor Larry Hanson cast a symbolic vote in favor of the tax.

Formal approval could come at the Nov. 16 meeting.

Emotions ran high as board members debated whether they've made enough cuts and run the government efficiently before hitting up residents already burdened by the effects of a severe recession.

"We have to remember people are losing jobs, being foreclosed on. They are scrapping to get by," said Pierce. "And now we're putting a new tax on them. We sit here and say there is nothing else we can do, somebody has to speak for them. That's what I'm doing, I'm speaking for them."

Trustee Jay Jozwiak took exception to Pierce's comments.

"I think you are missing the point. Everybody that sits on this board cares about these residents," Jozwiak said. "You don't have to speak for them. This whole board speaks for them. I take that personally. I'd love to hear some of your ideas. What would you want to do to fix this other than the utility tax? I don't want to hear that we're not looking at expenses, because we are."

The village has cut the equivalent of 20 full-time positions in the last two years, Keim said. Officials have also cut nearly $500,000 in spending this year.

With the failure of Neumann Homes, the stalled Antioch Market Place shopping center project and a decline in revenue from building permits, Keim said the village is on target to finish their fiscal year nearly $500,000 in the red. The total operating budget is just over $10.5 million.

"We can't close that gap," he said.

Antioch has taxed utilities in the past. The board enacted a temporary tax in 2002 to pay off a loan. It expired in 2004.