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 will be compensated following recent annexations by the village in unincorporated areas of Elk Grove Township. More annexation plans are expected to come in the future.
Under state law, the village is required to provide financial compensation to the fire district for any properties it annexes. In response, Mount Prospect is considering a proposal that would pay the fire district the full amount of compensation upfront over a shorter period, helping to maintain current staffing levels and ensure continued service. The village is also exploring long-term arrangements that could help sustain the fire district’s operations 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 areas 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 is now proposing an accelerated agreement that would cover all current and future annexed properties within just three years instead of five. In response, the fire district has drafted its own agreement, requesting that payments be spread out over 10 years and that fire services continue to be provided for that entire period. The village, however, remains concerned about a long-term commitment, especially given the fire district’s current financial challenges.
Mount Prospect Village Manager Michael Cassady explained that the fire district is facing a structural deficit that has been growing even before the recent annexations began. He believes a three-year deal offers a more realistic transition period, during which the fire district’s staffing may naturally decline.
The village is currently working on annexing part of a United Airlines property in unincorporated Elk Grove Township, as well as a residential area called Birch Manor, located at the northwest corner of Linneman Road and Dempster Street. If a three-year agreement is reached, the fire district may consider contracting with the village after that time.
Karl Ottosen, attorney for the Elk Grove Township Fire Protection District, warned that the district could face serious financial issues within a year due to the ongoing annexations. “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.â€
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 no agreement is reached, the district may have to significantly reduce its level of service, which could impact residents’ safety and emergency response times.
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