Prospect Heights officials are offering financial incentives and promising safeguards against tax increases if voters will only pass the home rule referendum item on the March 20 primary ballot.
And to make sure voters know what?s at stake, aldermen voted Monday to spend $16,000 for two months of communications services from Chicago-based consulting firm Serafin & Associates, Inc.?? an effort that could cost another $10,000 of city money for mailings and other communications to residents.
All that comes on top of a series of information meetings planned for various town locations, the first of which was sparsely attended.
In a resolution passed unanimously Monday, aldermen voted to cut taxes and fees, but only if the home rule referendum passes. The deal provides for a 25 percent cut in the existing property tax rate, a $5 cut in the fee for the $70 vehicle sticker, elimination of the $1 mail-in processing fee for stickers, elimination of the fee for tags for animals, and a freeze on garbage and solid waste fees.
All the changes and reductions are contingent on the home rule referendum passing. With passage, the changes in vehicle stickers and animal tags would take effect May 1, 2013. The other changes would go into effect on May 1 of this year.
In Illinois, home rule allows municipalities greater flexibility in establishing taxes, financing municipal operations and spending, using tax revenues and regulating zoning and other issues that might otherwise be subject to state rules.
Mayor Nick Helmer and others have said home rule would allow the city to tap into some existing revenue sources that aren?t available without home rule, in particular the city?s hotel and motel tax. Under state rules, in a non-home rule community like Prospect Heights that money must go to promoting convention business and tourism. Under home rule, the money could go to the city?s general fund to pay for road repairs, police officers and other expenses.
?The only way we?re going to get recurring revenue is through home rule,? Helmer said.
Helmer said the hotel and motel tax could add $350,000 or more per year to the city?s general fund.
This is the city?s third try for home rule status. As in past efforts, some residents have raised fears of hefty increases in property taxes. Prospect Heights taxpayers now pay only a small amount of property tax that goes to pay for police pensions.
To allay those fears officials pledged, if Prospect Heights becomes a home rule community, any new tax would require at least two public meetings and could only pass by a two-thirds majority vote of aldermen, effectively requiring four of five aldermen to vote for any new tax.
The idea of the pledge was brought up Monday by Leonard Digate, a member of the city?s finance committee who has been active at information meetings to make voters aware of the issues around home rule.
The pledge is expected come to the council for a formal vote at the next regular City Council meeting on Feb. 27.
Asked if the city?s efforts to offer incentives and pay for communications about home rule weren?t crossing the line between information and advocacy, Helmer said, ?We can?t go out and say, ?Vote for home rule.? We as a city can only tell you what the benefits of home rule can be.?
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