Barrington to explore options in wake of sales tax defeat
In the wake of voters rejecting a ballot proposal seeking a 1 percent local sales tax, Barrington village board members plan to study other options for creating a reliable income stream to fund road projects.
Village officials wanted a sales tax to generate about $1 million a year to improve streets, parking lots, sidewalks, public facilities and other infrastructure. They say the village needs the new revenue to fill a budget hole created by declining telecommunications tax income, the elimination of an emergency 911 fee and rising pension costs.
"I'll stand by what we told the public," Village President Karen Darch said. "We aren't going to be able to cut our way (for road funding). A million dollars is too big a hurdle to cross by cutting."
Darch said the village will need to reach residents to let them know the additional revenue is needed for a full road improvement program. Whether a similar sales tax request - perhaps less than 1 percent - or a borrowing proposal paid back through a property tax increase should go to voters will be something for the village board to discuss, she said.
Barrington's telecommunications tax revenue has fallen from $708,177 in 2012 to a projected $420,000 this year, figures show. The decline is occurring because of residents shifting from landlines to wireless phones at home.
In addition, the 911 tax that no longer exists produced $176,383 in 2012. Barrington officials also cited a doubling of fire and police employee pension contributions since 2012 as a reason the village sales tax was needed.
Voters rejected the measure Nov. 6 by 2,533 votes to 2,347. Cook County voters backed the sales tax question 1,404 to 1,349, but Lake County was against it by 1,184 votes to 943, according to unofficial results.
Trustee Jennifer Wondrasek said a residents' group to campaign for a "yes" vote could be worthwhile if the village tries another referendum. Darch said the village probably would not seek a ballot measure until 2020.
"I think we have another shot at going out there with the sales tax, property tax or both and let people choose," Darch said. "Would you rather have the rest of the communities pay more than half of this amount of money and help do our roads or would you like to take this on as the village of Barrington alone?"
Barrington's overall sales tax is 9 percent on the Cook County side and 7 percent in Lake County. The overall sales tax would have increased by 1 percentage point in each county if voters approved the measure, a good chunk of which officials said out-of-towners would have paid.
An extra 50 cents that would have been charged for every $50 purchase at a retail store or restaurant. Under state law, the local tax doesn't apply to vehicle sales, certain groceries or prescription drugs.
In Cook County, Palatine, Schaumburg, Arlington Heights, Hoffman Estates and South Barrington have a 1 percent village sales tax and an overall rate of 10 percent. Deer Park in Lake County has a half-percent local sales tax and a 7.5 percent overall rate.