Itasca officials seek to plug $3 million shortfall

Itasca officials are debating three measures that could help relieve a $3 million shortfall in the village's sales tax revenue.

The board of trustees on Tuesday explored whether the village should continue paying for residential waste hauling services or require residents to foot the bill; impose a 5 percent utility tax on heating and electric services; and possibly create a 1 percent food and beverage tax at area restaurants and hotels.

It is possible all three changes might happen, officials said, since Itasca leaders have cut costs in recent years by reducing employees, exploring different insurance options for village staff, and postponing infrastructure repair. A further loss of revenue could require service cuts for residents, they added.

“The sad message is, while we try to be different as a community, be more friendly be more Mayberry-like, we're not different economically and face the same challenges as our neighbors,” said Village Administrator Evan Teich. “It's not like (Itasca) stood around waiting three years and crossed our fingers. We eliminated 14 full-time positions, road projects have been delayed for years.”

Last month sales tax revenues were again below projection. So during Tuesday's committee of the whole meeting, officials met with a representative from the village's waste-hauler Republic Services Inc., to learn what the best deal might be for garbage, recycling and brush pickup services that currently cost Itasca about $700,000 per year.

Teich noted that waste prices in the area are expected to rise 3 percent to 5 percent annually in many suburbs, which is another expenditure Itasca must consider once its contract with Republic ends in June 2013.

“That (rise) is a lot of money when the village needs to decide what to do about sidewalks, gutters and roads,” he said.

No decision was made and trustees decided to discuss the issue at their June 7 board meeting.

Officials spoke more confidently about the idea to create a 5 percent utility tax that would show up on residents' bills from Nicor, ComEd and other service providers. They also had preliminary discussions on whether houses of worship, not-for-profit groups and other exempt properties should also be responsible for paying the extra 5 percent.

Village President Jeff Pruyn said he believes the groups should have to pay, and he met no objections.

Pruyn added that village leaders are scheduling a meeting with area food vendors to discuss the possible 1 percent food and beverage tax, which was recently passed in several neighboring communities like Roselle. About 35 restaurants operate in Itasca, but three are large-scale draws: the Westin hotel, Holiday Inn and Eaglewood Resort and Spa.

Trustee Ellen Leahy noted that the increase would still leave Itasca's prices lower than neighboring Schaumburg, which is subject to higher Cook County taxes.

The board will discuss both the proposed utility and food taxes on June 7, officials said.