Mount Prospect trustees OK 2% property tax levy increase

Mount Prospect residents enjoyed no increase in this year's village property tax levy, so anyone expecting an encore next year will likely be disappointed.

On Tuesday, Mayor Arlene Juracek broke a 3-3 deadlock and the village board approved a 2% increase. Joining Juracek were Colleen Saccotelli, Michael Zadel and Eleni Hatzis. William Grossi, Paul Hoefert and Richard Rogers voted against the measure.

The village's property tax levy for 2019, to be collected in 2020, will be $19.4 million, an increase of $381,000. The village's portion of the tax bill for a house valued at $350,000 will be $1,188, an increase of $23.

Hoefert said the economy is humming and sales tax revenues have been flowing to the village.

"I just think you don't ask for tax increases when things are this good," he said.

Grossi noted the village also receives revenue from sales and income taxes and other taxes and fees.

"It's not like the only source of our revenue is the levy. If it was, I would probably vote for the 2%. But it isn't," he said, adding the village's fund balance went up with no property tax levy increase last year.

Juracek said she's thrilled with the village's sales tax growth but is concerned "about kicking the can down the road. That's what got the state of Illinois in trouble. It's why our property tax rates are so high, because they kicked the can down the road on school funding."

Others expressed concern about not boosting the levy in consecutive years.

Village Finance Director Amit Thakkar predicted dire consequences if the village pursued a flat increase from now on, contending the cumulative loss in the levy could mount to $15 million by 2023.

With increased pressure to fund debt service and police and fire pensions, he said, "This is the money that we will have to find somewhere else."

Village Manager Michael Cassady said, "And even with a 2% this year, we're looking at over 4% (next year)."

The board unanimously approved a $147 million budget, which will include a general fund budget of $62.1 million. The $147 million is down $22 million, attributed to the completion of significant capital projects, including the new police and fire headquarters.