Why?
Obviously, the lack of revenues received from the state plays a role. It's had an extremely harmful effect on every community around us, and we certainly have not been immune.
We've been very aggressive in addressing our infrastructure issues. As you've read probably a few more times than you'd like on this blog, the proof is in the pudding. Please read as follows regarding how we have changed the monetary outputs towards curbs and sidewalks in the Heights:
"Here is what was actually spent in the last 4 budget years of the Carter administration on Curbs and Sidewalks:
2005-2006 $3,804.00
2004-2005 $43,014.00
2003-2004 $57,292.00
2002-2003 $9,288.00
Here’s what has been spent on Curbs & Sidewalks in the first 4 years we had control of the budget:
2006-2007 $124,807.00
2007-2008 $154,821.00
2008-2009 $97,589.00
2009-2010 $76,597.00
For a grand total of: $453,814.00."
That's over FOUR times more that was spent on curbs and sidewalks in Peoria Heights since we've had control of the budget.
It truly cannot be made any plainer.
We've also been very aggressive regarding our services provided to the Village. The full time Ambulance Service, which is paramedic certified, is the easy example. But, also the addition of a full-time Ordinance Officer/Building Inspector; the addition of an additional Police Officer, who also spends a good deal of time at our grade school, as the School Resource Officer. The moving of the Police Department to a separate building; scroll through the blog, and there will be a good deal more examples.
But, I also believe this is more fair for us as a Village, and for our citizens, as well. The last thing I wanted to do was to see ANY tax increase in Peoria Heights, particularly during these recession years. However, this is not an increase in property taxes. The proposed increase will bring OUR base sales tax rate to equal Peoria's same... and that's all.
The citizens of Peoria Heights probably spend 80-90% of their disposable income in Peoria, East Peoria, Washington, etc. Mostly because, let's face it, those communities have a much greater variety of the stores that we all mostly buy our goods from. We don't have a Best Buy. We don't have a Target. We don't have a Wal-Mart. We don't have a Kroger. So, whenever our citizens go into Peoria, they pay 8 1/4% sales tax to the City. In the Heights, it is 7 3/4%. But, that smaller sales tax percentage certainly has not brought in a Best Buy; or a Kroger; or a Target to the Heights. No one who lives within a few blocks of the Walgreen's on University is going to hop into his/her car, drive to the Heights Walgreen's, in order to save 18 cents. So, the lower sales tax percentage only costs us revenues; it doesn't give us the "retail edge" that it was hoped it would.
How much more will it cost the consumer who shops in the Heights compared to now?
If you go to Walgreen's and buy $40.00 worth of items, you will end up paying 20 cents more. If you go to one of the restaurants along Prospect, and have a $250.00 bill, you will end up paying $1.25 more. Bear in mind, whatever you end up paying in either of those scenarios, you'd be paying the same amount if you were doing your purchasing in Peoria. Although, you would be paying more at the restaurant, actually, in taxes, in Peoria; as the City has an additional tax amount for restaurants.
This .5% sales tax increase could mean upwards of an additional $250,000.00 a year for the Heights.
If we want to continue to be more aggressive with our infrastructure issues; and making sure that our services remain what they are, if not better; and to make sure that we remain a VIABLE community; then, we have to make certain that our revenue stream is all it can be, particularly in these economically trying times.
No one wants to see ANY tax increase; especially anyone on the Board of Trustees and me. But, to let needed revenues go unclaimed, just BECAUSE, is no longer a smart option. Our services and infrastructure issues are virtually the same as Peoria's... our sales tax rates should be the same, as well.
