Excerpts from journal-topics.com:
Officials from the Elk Grove Township Fire Protection District and Mount Prospect are currently negotiating an intergovernmental agreement that would determine how the fire district is compensated for recent annexations by the village in unincorporated areas of Elk Grove Township. More annexation plans are expected in the near future.
State law mandates that the village provide financial compensation to the fire district for any newly annexed areas. To ensure the fire district remains financially stable without reducing staff, Mount Prospect is considering paying the full amount over a shorter timeframe. Additionally, the village is exploring long-term funding solutions to keep the fire district operational despite the loss of tax revenue.
As part of each annexation, the village is legally required to pay the fire district a gradually decreasing percentage of property taxes collected from the annexed properties over five years. The payments start at 100% in year one, then drop to 80%, 60%, 40%, and finally 20% in year five.
Mount Prospect Village Manager Michael Cassady has proposed an accelerated agreement that would cover all current and future annexed properties in just three years instead of five. In response, the fire district has drafted its own intergovernmental agreement, requesting that funds be distributed over 10 years and that the district continue providing fire services for the same period. However, the village is concerned about committing to a decade-long contract.
"We reviewed their financials and saw a structural deficit that will affect their ability to operate, even before the annexations began," Cassady said.
Cassady believes a three-year agreement offers a reasonable transition period, during which he expects the fire district’s staffing levels to decline. He also emphasized that the village wants to ensure the fire district can maintain service while adjusting to new financial realities.
The village is planning to annex 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 deal is finalized, the fire district could potentially contract with the village afterward.
Fire district attorney Karl Ottosen warned that, due to the village's ongoing annexation efforts, the fire district will face severe financial challenges within a year if no sustainable funding plan is in place.
"They're losing nearly 50% of their tax revenue," Ottosen 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.
If an agreement isn’t reached, Ottosen warned that the fire district may have to significantly reduce its level of service, which could impact the safety and well-being of residents in the area.
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