1 Percent Tax Increase Derails La Grange Board on Budget

La Grange trustees tabled the discussion and approval of the Village's 2012-2013 budget on Monday night after failing to pass a 1 percent tax increase on utilities. The board will have to go back to the budget and find a way to cut another $150,000, which Board President Liz Asperger warned would not be easy.

Trustees Jim Palermo, Michael Horvath, Jeff Nowak and Mark Kuchler voted against the increase. Trustees Mark Langan and Bill Holder voted for its approval. Ultimately the vote failed 4-2 against the rate hike.

Horvath said he thought there were other areas where the village could trim costs, or ways to increase revenue without increasing taxes on residents.

Kuchler said he would support raising the money through "user fees," such as an entertainment tax in downtown La Grange. Palermo said he would vote no because staff had not worked on getting a referendum on electrical aggregation, like many and which might save resident's money. Nowak said he could not support raising more taxes when the board was already raising rates in other areas in the village, .

The 1 percent increase would have amounted to an additional $40 on the average resident's annual electricity costs.

Lagan said that even with a 1 percent increase, the village was still below average compared to other municipalities and said he would support it.

"If we don't approve this, what are we going to cut out of the budget?" Langan asked fellow trustees.

Trustee Holder said he agreed with Langan and added the village needed to shore up its reserve funds that were woefully low.

"This is something we've planned for five years," Holder said. "Yes, we didn't plan on other increases, but this is a small one and it still leaves us short."

When it was clear the increase would likely be defeated, Asperger reminded trustees that a no vote would result in a $150,000 reduction from the Village's proposed budget and would force them to make additional cuts. She said she supported the comments of trustees Langan and Holder. Asperger added that although all the board members shared Nowak's concerns of the increases, she felt the increase was necessary and reminded board members that many cuts had been made, saving residents $700,000 with the proposed budget.

"It kicks the can down the road to next year," Asperger said. "I want to be very clear with our residents. What we're talking about is what services we want to cut [if the increase is voted down]. We are a village of residents who have become accustomed to a high quality of services. We need to increase our revenues to support those services."

Horvath said he disagreed with the president and said he could think of areas that could be trimmed.

Trustees will revisit the approval of the Village's 2012-2013 budget at their next scheduled board meeting on .

Correction: An earlier version of this article made reference to Trustee Michael Horvath having changed his vote on the utility tax issue at this meeting and was incorrect.