Frankfort Puts Sales Tax Hike Referendum On November Ballot

FRANKFORT, IL — A referendum to increase Frankfort's sale tax will be on the November ballot, letting voters decide on the 1 percent hike. The ballot measure, which would raise the sales tax from 7 percent to 8 percent, was unanimously approved by the Frankfort Village Board on Aug. 6.

While Frankfort is currently financially "very sound," the village could face tighter economic times in years to come without the sales tax increase, said Trustee Cindy Heath, the acting mayor pro-tem for Mayor Jim Holland at the Aug. 6 board meeting. Village staff has already been reduced from 88 employees to 78, and officials have delayed certain capital expenditures, such as buying new snow plows, Heath said. On the revenue side, the village has added a garbage fee and utility taxes, she added.

"While all of these actions have helped us in the short run, they're not sustainable solutions to our long-term financial health without making significant cuts to village services," Heath siad. "Without changes, we expect our we expect our financial picture could become critical in the next three to five years."

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"We've managed to succeed through a combination of efficiency, cross training, attrition," she added. "But we recognize that we can't continue in this manner indefinitely, especially if our residents want us to keep up the level of services we have been providing them."

The proposed sales tax increase would generate about $2.8 million, Heath said. That money would then go toward hiring police officers as well as contributing to Frankfort's capital fund, which pays for infrastructure improvements, according to an additional measure adopted by the Village Board.

An upside of the tax hike — besides adding quite a few more dollars to village coffers — is that 70 percent of it would be generated by non-residents, Heath said. Even with the possible increase, Frankfort would still have a relatively low sales tax at 7 percent compared with other nearby communities. Among Lincoln-Way villages, New Lenox has an 9 percent sales tax, and Mokena's is at 7.5 percent. Tinley Park's sales tax varies by location; it's 7.75 percent in the Will County stretch and 9.75 perecent in the Cook County portion.

Village administrator Rob Piscia told the Daily Southtown that sales tax makes up 38 percent of the Frankfort's revenues. That compares to about 24 percent for property tax and around 11 percent for income tax, a percentage that has been lowered by Illinois, he added.

YOUR TURN: How will you vote on the sales tax increase referendum? Share your thoughts and opinions in the comments section.

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