: Approval of this resolution would authorize placing a referendum question to increase the Village’s non-hone rule sales tax rate by a half-cent, from 0.5% to 1.0%, on the November 3, 2020 election ballot. As the Village is not a home rule unit of government, an increase in this sales tax rate must be approved by voters prior to its implementation.
Recent facility assessments of the Paulus Park Barn and Fire Station #1, two of the Village’s oldest facilities, identified pressing space and building deficiencies that would require substantial reinvestment in both facilities. A fire at the park barn in November 2019 accelerated recognition of these needs, prompting the Village to conduct a public participation process focusing on future investment in the two facilities. Participants favored investment in a one-story expansion to the Paulus Park barn and a new Fire Station #1 to address the needs identified in the facility assessments. The two facility improvements are estimated to cost $15.9 million, necessitating consideration of an appropriate revenue source to fund them.
The outreach process also explored the community’s willingness to financially support the facility improvements. The results indicated that residents favored a half-cent increase in the Village’s non-home rule sales tax, rather than rely on a property tax increase. If approved by referendum, the sales tax increase would be effective in July 2021 and would generate an additional $1.5 million annually. After prioritizing investment in the park and fire buildings, the Village would be allowed to use the increased funds for other eligible infrastructure projects, such as those identified in the Community Investment Plan.
To place the referendum question on the November 3, 2020 ballot, the Village Board would need to adopt the provided resolution with the question formatted as follows:
“Shall the Village of Lake Zurich be authorized to increase its current one-half percent (.5%) sales tax by another one-half percent (.5%) to levy a 1% sales tax to be used for public infrastructure, municipal operations, or property tax relief?”
Consistent with the Village’s commitment to radical transparency, placing the referendum question on the upcoming ballot would allow Lake Zurich voters to directly decide whether to approve a half-cent sales tax increase for future facility and infrastructure investments."
Recommended Action: A motion to approve a Resolution #. #2020-08-049 Providing for the Submission of the Proposition at Referendum of Whether the Village of Lake Zurich Shall Increase its Current Local Sales Tax of 0.5% to a Rate of 1%.