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player ready...La Grange voters will be asked this spring to consider a retail sales tax increase to help the village address aging infrastructure needs in what Village President Tom Livingston has called the post-tax increment financing era.
On Monday, village trustees voted unanimously to place the tax question on the April 7 ballot. If approved by voters the village board would choose when to impose a sales tax increase from 0.25 percent to 1 percent.
The new revenue from the increase would go toward sewer and water infrastructure improvements, public safety and economic development projects.
In conjunction with the increase, Livingston has proposed decreasing the village’s food and beverage tax from 1 percent to 0.25 percent and freeze the village’s portion of the property tax in 2015.
The Illinois Municipal Code requires municipalities to get authorization from voters by referendum to increase a retail sales tax or service tax.
“I really do believe we need to have the tools in the post-TIF era to do some of the things we’ve heard from businesses, from residents beyond our maintenance budget … to be able to pack a bigger punch in terms of meeting our capital needs,” Livingston said, referring to the expiration of a TIF district that collected $30 million for economic development between 1986 and 2010.
In September, officials identified about $14 million worth of unbudgeted sewer improvement projects to combat recent flooding in the village.
Staff members estimate that the retail sales tax increase coupled with the food and beverage tax rollback and property tax freeze would result in a net increase in annual revenue of about $485,000, according to village documents.
While some trustees said they were unsure of the other elements of the tax plan, all voiced support for going to voters with the sales tax question. The board will consider the food and beverage tax and property tax components at a later meeting.
“I am all for going to the voters for this question. The (financial) package that we have though is not ready for me,” said Trustee Mark Langan.
Trustee Jeff Nowak called the plan “creative,” noting the need to generate more revenue for the village.
“For years we’ve talked about the limited ability to generate revenues … but yet we have events that we’ve gone through this past year, weather events that will continue to plague us,” Nowak said. “I like this idea of creatively generating revenue and in a way that voters get to decide.”