Extracts taken from journal-topics.com:
Representatives from the Elk Grove Township Fire Protection District and Mount Prospect are collaborating on an intergovernmental agreement that addresses how the fire district will be compensated following recent annexations by the village within unincorporated Elk Grove Township. Additional annexations are anticipated.
Financial compensation to the fire district is mandated by state law. The village is considering providing the fire district with the same amount of funds but over a shorter timeframe to ensure its sustainability without needing to cut fire personnel. They're also exploring ways to establish a long-term arrangement with the fire district to compensate for the lost tax revenue.
In accordance with any annexation, the village is obligated to pay the fire district a diminishing percentage of property taxes collected from the annexed areas over a five-year span. This begins with the full tax levy in year one, followed by 80% in year two, 60% in year three, 40% in year four, and 20% in year five.
Mount Prospect Village Manager Michael Cassady mentioned that the village is proposing an expedited agreement that would deliver the district all these funds—both for the currently annexed properties and those set to be annexed—over a three-year period rather than five years. Recently, the fire district responded with a drafted intergovernmental agreement suggesting the continuation of these payments over the next decade. Additionally, the draft agreement specifies that the fire district will continue providing fire services for the next ten years.
The village expressed reservations about committing to a deal lasting a decade.
"When we reviewed their finances, we noticed a structural deficit that could hinder operations," Cassady stated. "This deficit was apparent even before we began the annexation process."
Cassady argued that a three-year agreement is robust enough to allow for a proper transition period, during which the village anticipates a reduction in the fire district's staffing levels.
The village is currently in the process of annexing portions of land owned by United Airlines in unincorporated Elk Grove Township, as well as Birch Manor, a residential subdivision located at the northwest corner of Linneman Road and Dempster Street. If a three-year agreement can be finalized, Cassady noted that the fire district might then enter into a contract with the village.
Fire district attorney Karl Ottosen highlighted that, given the village's ongoing annexation activities, the fire district will confront severe financial challenges in maintaining the same level of service residents have come to expect, starting next year.
"The fire district is losing nearly half of its tax revenue," Ottosen remarked. "It's crucial to determine who will provide fire protection and how it will be funded."
The Elk Grove Township Fire Protection District serves various industrial businesses in unincorporated Elk Grove, as well as mobile home parks along Elmhurst Road and Touhy Avenue.
Ottosen warned that if an agreement cannot be reached, the fire district will be forced to significantly reduce the levels of service it provides.
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