Excerpts from journal-topics.com:
Officials from the Elk Grove Township Fire Protection District and the Village of Mount Prospect are currently negotiating an intergovernmental agreement that would determine how the fire district will be financially compensated due to recent annexations by the village in unincorporated Elk Grove Township. More land is expected to be annexed in the near future.
Under state law, the village is required to provide financial compensation to the fire district for the properties it annexes. To ensure the fire district can remain financially stable without reducing its staff, the village is considering a faster payment schedule—offering the same total amount over three years instead of five. Additionally, the village is exploring long-term funding arrangements to help the fire district stay operational despite the loss of tax revenue.
As part of each annexation, the village must pay the fire district a gradually decreasing percentage of the property taxes it currently collects from those areas. This phased approach starts at 100% in the first year, then drops to 80% in year two, 60% in year three, 40% in year four, and 20% in year five.
Mount Prospect Village Manager Michael Cassady has proposed an accelerated agreement that would cover all current and future annexed properties within a three-year period. In response, the fire district has drafted its own intergovernmental agreement, requesting that payments continue over the next 10 years. The draft also includes a commitment from the fire district to provide fire services for the same duration.
However, the village is hesitant about a 10-year deal. According to Cassady, the fire district is facing structural financial challenges that could affect its ability to operate effectively, even before any annexations took place.
Cassady believes a three-year agreement offers a more practical transition period, during which the fire district’s staffing levels are expected to decline. He also noted that the village is planning to annex land owned by United Airlines, as well as parts of Birch Manor, a residential area located at the northwest corner of Linneman Road and Dempster Street.
If a three-year agreement is finalized, the village may consider contracting with the fire district after that period. However, the fire district’s attorney, Karl Ottosen, warns that the district will face serious financial difficulties within the next year if no new funding arrangements are made.
Ottosen said the fire district is losing nearly 50% of its tax revenue due to annexations, and they need clarity on who will fund the fire protection services moving forward.
The Elk Grove Township Fire Protection District serves several industrial businesses in unincorporated areas, as well as mobile home parks along Elmhurst Road and Touhy Avenue.
If an agreement cannot be reached, Ottosen warned that the fire district may have to significantly reduce its service levels, which could impact the safety and security of residents in the area.
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