Elk Grove Township FPD news

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 to determine how the fire district will be compensated following recent annexations. More expansions are expected in the near future.

Under state law, the village is required to provide financial compensation to the fire district for the properties it annexes. In response, Mount Prospect is considering a proposal to pay the full amount over a shorter timeframe—three years instead of five—to help maintain current staffing levels and ensure continued service. The village is also exploring long-term funding arrangements that would allow the fire district to stay operational despite the loss of tax revenue from annexed areas.

Typically, the village must pay the fire district a gradually decreasing percentage of property taxes collected from annexed land over five years. This includes 100% in the first year, 80% in year two, 60% in year three, 40% in year four, and 20% in year five.

However, the village has proposed an accelerated agreement that would cover all current and future annexed properties within just three years. The fire district, on the other hand, has drafted its own intergovernmental agreement suggesting that payments should continue over the next decade. As part of this draft, the fire district has also agreed to provide fire services for the same period.

The village remains concerned about a ten-year deal, arguing that the fire district's long-term financial stability is uncertain. According to Mount Prospect Village Manager Michael Cassady, the fire district already faces structural deficits that could affect its ability to operate—even before any annexations took place.

Cassady believes a three-year transition period is more practical, as it allows time for the fire district to adjust. He notes that staffing levels are likely to decrease during this time, which the village sees as a necessary step toward long-term sustainability.

Mount Prospect is planning to annex parts of land owned by United Airlines, as well as Birch Manor, a residential subdivision 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.

Fire district attorney Karl Ottosen warned that the district will face serious financial challenges within a year due to the ongoing annexation efforts. "They're losing nearly 50% of their tax revenue," he said. "We need to know who will provide fire protection and how it will be funded."

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. Without a viable agreement, Ottosen said the district may have to significantly reduce its level of service to remain financially viable.

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