If the new property tax is technically for 2009 why do the offsets of garbage and vehicle sticker fee elimination start later?
The recommendation to the Village Board is to implement a property tax for 2009, payable in 2010, eliminate the vehicle sticker for 2011 and start paying for garbage January 1, 2011. The Village has a projected deficit for 2009-2010 of $12 million. The vehicle sticker for 2010 is included as revenue for 2009-2010. If the sticker is eliminated in 2010 the deficit would be that much bigger and without adequate reserves to cover the loss in revenue the Village would be that much closer to running out of money prior to the receipt of property tax revenue in December 2010. The same timing problems hold true for starting to pay garbage service but in that case it isn’t a revenue loss but additional expenses created by taking over the fee.
