Hinsdale President: 'No Hope' of Reaching Goal Without Sales Tax Increase

Hinsdale's village president is asking residents to think about the current condition of roads and sewers in the village when they step in the voting booth in November. Thomas Cauley told attendees of the village board meeting Tuesday night that the village desperately needs to make repairs to its infrastructure—repairs that are part of the village's infrastructure master plan.

To make the repairs, Cauley said a one percent increase in Hinsdale's sales tax is needed. Business owners in Hinsdale have mixed feelings about the proposed sales tax increase.

"Paying one percent more in sales taxes makes a difference to us, especially when you're selling a high ticket item like a fur coat," said Susie Duboe-Bryant, owner of Hinsdale Furriers, which has been owned and operated in Hinsdale since 1952. "I really haven't made up my mind [on the issue]. I don't know which side I fall on. I think Hinsdale needs the roads fixed, but I often wonder, 'Aren't there other ways to do it?'"

Cauley said the village will continue to be vigilant in looking for areas to cut costs, but there is a limit to how much more cutting can be done. "In my view, there is absolutely no way to fund the infrastructure master plan through budget cuts alone without threatening basic village services," said Cauley.

Cauley pointed out that over the past two years, the village has made drastic cuts in staffing, services and other programs. Among these were eliminating 18 full-time positions (including eight in the police department and five in the fire department); freezing wages, eliminating programs (such as the senior taxi program); and reducing services (such as funding for the community pool.)

"While more cuts can and will be made, we are getting pretty close to the bone," said Cauley.

The village sent flyers to residents earlier this month that said "almost half of Hinsdale streets are either in "poor" or "failed" condition and pointed out that village fire hydrants have "insufficient water flow to fight a house fire.

Cauley said the sales tax increase will largely affect non-Hinsdale residents, and that the average Hinsdale resident would only pay about $100 a year more per household in taxes. In September, the Hinsdale Chamber of Commerce endorsed the sales tax referendum.

The village board promoted Tim Scott economic development director to spearhead efforts to raise more revenue for the village.  This is an effort some business owners feel might be hindered by an increase in sales tax.

"I don't think that's something I'd support," said Rick Johnson, owner of King Keyser Sporting Goods when asked about efforts groups are making to encourage people to vote to increase the sales tax. "I don't think raising taxes is the most logical course of action with businesses struggling to stay around. A good amount have left over the past two years." Although Johnson does not live in Hinsdale, he has worked in the village for the past 30 years.

A task force of local merchants, realtors and landlords has been created to come up with additional ideas to revitalize downtown Hinsdale.

The infrastructure master plan is estimated to cost $86.8 million over a 15-year period. This amounts to nearly $6 million a year. Even with an increase in the sales tax, the village would still need to raise more revenue to cover the costs of the plan.

Village Manager David Cook said that, in the end, it is up to residents to decide the best course of action. "I think we've shown that we've done everything we can to put our house in order. We have made significant cuts. This is a situation where we need additional revenue to complete the master plan."

"Without the one percent sales tax increase, we have no hope of reaching that $6 million per year goal and implementing the master infrastructure plan," said Cauley.

The one-percent sales tax increase will be on the ballot on November 2. If the referendum is approved by voters, it will generate an estimated $1.5 millon a year to help implement the village's infrastructure master plan.