Lake Zurich seeks home rule to raise revenue

Exactly what happens if Lake Zurich becomes a home rule community likely will be determined at budget time, but village officials say there is no shortage of need for increased revenue.

That's the bottom line behind a measure voters will decide Nov. 4.

A home-rule designation, which is automatic for towns with a population of 25,000 or above, gives communities broader powers, including the ability to increase or impose taxes or fees. With an official count of 19,631, Lake Zurich needs voter approval to take that step. The Lake Zurich village board last month decided to put the question to a vote, and is set to educate residents and businesses on what it means.

"We're looking to control our own destiny more. That's probably the biggest key," said Mayor Tom Poynton.

One group presentation has been made and others are planned, including a public forum on Oct. 22, he said. Homeowner groups also have been contacted and information has been posted on the village website and Facebook page.

"We've got a lot of information already out there," Poynton said. "We made it very clear when we passed it we would be willing to go anywhere," to discuss the home-rule designation, he added. Poynton said there has been little buzz in town on the topic, but what he has heard has been positive.

Village officials stress the intent not to raise property taxes beyond what currently is allowed as a non-home rule community. The property tax cap limits increases to 5 percent or the rate of inflation, whichever is less.

The village is looking for revenue from other sources for increased expenses, such as its $2 million, multiyear program to deal with the emerald ash borer, or money to improve streets. The source of that revenue is to be determined, although an increase in sales tax or a gas tax are possibilities.

The Lake Zurich Area Chamber of Commerce has not taken a position on the issue and is gathering data before deciding, Dale Perrin, the chamber's executive director. The organization is assembling a list of pros and cons to send to members and post on its website.

"What avenues are they going to use to seek additional revenues?" Perrin said. "I think it's a highly important issue everybody who pays property tax or sales tax should certainly be aware of."

Officials say home rule also would free the village from various state regulations and unfunded mandates.

"One example of a state imposed regulation that hampers us as a non-home rule community concerns the use of hotel/motel tax dollars," said Village Manager Jason Slowinski. "Non-home rule communities are restricted to using those funds for purposes that generate overnight stays at hotels and motels, such as some special events. Home rule cities can use hotel/motel tax dollars for any purpose."

Lake Zurich voters resoundingly defeated the same question in 1998. Poynton said there was political turmoil in town at the time.

"I think we have different spirit in Lake Zurich today than we did then," he said.