Antioch residents not happy about new tax

Antioch village officials have anguished and argued, but finally approved a utility tax meant to shore up a budget shortfall.

It's good news for the town's finances, but the move, made official this week, isn't sitting well with some residents and business owners.

Ashley Michel is the manager of Something Sweet and Gourmet on Main Street. She feels the village is sticking it to the local businesses. "This feels like a punishment," Michel said Tuesday. "It's not fair to make us pay for their budget problems. Someone there didn't do their homework, and we pay."

Formal implementation of the tax came with a majority vote at the village's meeting on Monday. Trustee Scott Pierce has been the only board member to oppose the tax. He was absent from Monday's meeting, as was trustee Mike Wolczyz. All the other trustees voted to approve the tax.

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.

Officials said the cash is needed to make up for a drop in revenue. 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 the fiscal year nearly $500,000 in the red. The total operating budget is just over $10.5 million.

Officials say the money from the new taxes will be used for critical needs.

"This fund will be protected. It has a lot of teeth," Mayor Larry Hanson said Tuesday. "The money will be reserved for building up our emergency reserve account, capital improvements, pension obligations and other critical needs. We need to protect and continue to provide services our residents expect."

Residents critical of the new tax have raised questions about whether the village could have made more cuts in staff or spending before hitting them up for cash.

But Hanson said the village has cut at least 20 positions in recent months and slashed about $500,000 in spending already.

"We've done everything humanly possible before resorting to this tax," Hanson said. "None of us wanted to pass this tax on people already hurting in the recession."

Julian Persin owns the long time downtown Antioch business Persin and Persin Jewlers. He's taking a wait-and-see approach.

"I don't know all the facts on this yet. But if the expenditures are legitimate and the money is spent in the right way, that's one thing," Persin said. "But if it's like most government spending, it ends up gouging the average taxpayer."

At least one resident sided with village officials. Sandra Krak says she hopes the money fills the need.

"If the money is used to keep our services going and is spent well, I think it's a good idea," she said. "My money is tight for sure. But if comes down to $12 a month, that's not too bad."