Elburn advancing sales tax hike request

Elburn officials are working on plans to ask voters to increase sales tax to help pay the village's police pension obligations.

The village board Tuesday directed administrators to prepare questions it could place on the February primary election ballot to raise the tax by 1 percentage point.

The village would phase the increase in over four years, in quarter-cent increments, President Dave Anderson said.

The board will review the questions and related ordinances at its Sept. 21 committee of the whole meeting.

The deadline to submit a referendum question to the county clerk is Dec. 28.

The increase could only be applied to general merchandise. Most groceries, medicines, medical appliances and equipment, and titled or registered personal property such as vehicles and trailers would be exempt.

If fully implemented, the rate would be 8 percent.

Anderson did not know how much a sales tax increase would bring in.

Former Trustee Craig Swan suggested the tax increase earlier this year. Anderson had asked Kane County Sheriff Don Kramer about the possibility of having the sheriff take over policing of Elburn. Kramer has not given an answer, Anderson said.

"And I am not going to pressure him one way or the other," Anderson said, noting it is Kramer's first year in office and that he has his own budget problems with which to deal.

Elburn police used to belong to the Illinois Municipal Retirement Fund, like other village workers. The village levies a specific property tax for its IMRF contributions.

But once Elburn passed 5,000 in population in the 2010 Census, state law required it to establish its own pension fund for the police. The village's contribution to it is paid with property taxes levied for the general fund. The board can only increase that levy because of new construction and by the rate of inflation. Increases beyond that require voters' approval.