Prospect Heights approves home-rule referendums

The Prospect Heights City Council agreed to ask residents in November whether they want to be a home-rule community, which would give local government more taxing power to raise revenue.

With the board approving the measure, two referendum questions will be put on the ballot.

No. 1: If the city of Prospect Heights becomes a home-rule city, shall the city council exercise home-rule power to use existing hotel taxes to rebuild city streets?

No. 2: Shall the city of Prospect Heights, located in Cook County, Illinois, become a home-rule unit?

The first question is advisory, but the second one is binding.

Home-rule powers gives municipalities, townships and counties broad powers over taxes, licensing and regulations. Such a status can help secure loans, promote economic development and provide greater legal protection. But critics have charged it leads to higher taxes. Boards and councils in towns with more than 25,000 residents can simply adopt home-rule authority. But towns under that size must get an OK from residents. Prospect Heights' population is about 17,000.

The city tried to pass home rule in 2004 but failed by a nearly 2-to-1 ratio. 1,104 residents voted "yes," while 2,156 residents voted "no."

Despite the defeat, it's time to try again, acting Mayor Pat Ludvigsen said. Times have changed with the city needing more money for projects like paving city streets. This time, the city will work harder at educating the residents about what home rule is, Ludvigsen said.

Ludvigsen said home-rule status would allow the city to use hotel taxes on important infrastructure projects like repairing streets. Now by state law, non-home-rule communities must use taxes collected from hotels to promote tourism, so that money goes to the Prospect Heights Convention and Visitors Bureau.

While the board voted to put the questions on the ballot, not everyone on the current council is in favor of it.

Alderman Dolly Vole said home rule could be used to tax residents further. Although this council might not use the power to impose taxes, future councils might do otherwise, she said. Despite her opposition to home rule, she has said she wants voters' opinions in November.

But Alderman Bree Higgins said it's essential that home rule be established so the village can increase its revenue.

"We just want a piece of the pie," Higgins said. "We are not going to increase property taxes. We are trying to get money that is owed us."