Ambulance fees, data center electricity tax could fund new Hoffman Estates fire stations
Hoffman Estates officials expressed interest Monday in formalizing a $25 million plan to replace the village's two oldest fire stations within the next five years by raising ambulance fees and the electricity tax on high-volume users to regional averages.
Under the still-unapproved plan, a replacement for the more than 50-year-old Station 21 at 225 Flagstaff Lane could begin construction at neighboring Chino Park next spring.
Then, in the spring of 2026, construction would begin on a new Station 22 on a yet to be identified site to replace the equally old facility at 1700 Moon Lake Blvd.
Under the plan, personnel would remain at the old stations during construction and spare the village any relocation costs, Deputy Village Manager Dan O'Malley said.
Repayment of the $9 million in bonds for Station 21 could be covered by the annual $441,000 generated by bringing the village's insurance-eligible ambulance fees up to the average norm for the surrounding area, he added.
The village's electricity tax also is below average for the area. But raising it to the average only for consumers of above 2 million kilowatt-hours - like the forthcoming Microsoft data centers - would generate a sufficient $900,000 annually to pay for the $16 million Fire Station 22 without affecting other customers, O'Malley said.
As a potential backup for these sources, redirecting some of the village's other utility tax revenues away from their currently exclusive use for roads could be considered, he added.
"I like the proposed increases," said Trustee Gary Pilafas, chair of the finance committee. "I think they're within reason."
Trustee Gary Stanton asked whether the suggested increase of the village's electricity tax could make it unattractive to further interest by high-volume users like Microsoft,
Village Manager Eric Palm said such an increase would only put Hoffman Estates on par with Elk Grove Village, which also has been a draw for the building of data centers.
Each fire station is expected to take six to eight months to design, and 12 to 18 months to build.
The current site of Station 22 on the east side of the Ascension St. Alexius Medical Center campus would be put up for sale once its replacement is built somewhere nearby.
Though no decisions were made regarding the plans Monday, documents will be prepared for a future vote on the proposed funding sources.