Mount Prospect won't hike property taxes next year

Mount Prospect village board members this week gave their taxpayers something for which to be thankful.

Trustees on Tuesday unanimously passed a $19 million levy that will lead to no increases in the village's portion of residents' property tax bills, officials say. The village accounts for about 11 percent of the typical homeowner's property taxes.

In passing the levy, trustees shot town a 1.66 levy hike proposed by the village staff. That would have added about $18 to the tax bill for the owner of a $350,000 home.

Finance Director David Erb said the village would take $316,000 from its reserves to replace the money the levy hike would have generated.

Erb said the long-term impact would reduce village reserves from its current 34 percent of annual operating expenses to a little more than 27 percent by 2022.

Trustee Richard Rogers pointed out that's still above the 25 percent benchmark.

"I still believe that we should have a zero tax increase this year," he said. "With the way taxes are going for everybody else, I think we have got to set an example that we can do everything we want to do without having to raise the taxes."

Trustee Paul Hoefert said that while he has advocated for strong reserves, allowing them to grow too large could create a "piggy bank" for the village to spend on projects.

Trustee William Grossi said the village needs to get its reserves down a little.

"My fear is if Springfield does see that we have a 35 percent reserve, they're going to say, 'Guess what? You have got that money, and we're going to take the money from over here,'" he said. "This way we can put the onus on the newly elected people down in Springfield."