Excerpts from journal-topics.com: Officials from the Elk Grove Township Fire Protection District and Mount Prospect are currently negotiating an intergovernmental agreement to 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 in the near future. Under state law, the village is required to provide financial compensation to the fire district for the properties it has annexed. In response, Mount Prospect is considering a shorter payment timeline to ensure the fire district remains financially stable without having to reduce staff. The village is also exploring long-term arrangements to keep the fire department operational despite the loss of tax revenue from the annexed areas. As part of each annexation, the village must pay the fire district a gradually decreasing percentage of property taxes collected from those areas over five years. The payments would start at 100% in year one, drop to 80% in year two, 60% in year three, 40% in year four, and 20% in year five. Mount Prospect Village Manager Michael Cassady proposed an accelerated agreement that would cover all current and future annexed properties in just three years instead of five. However, the fire district has responded with a draft agreement requesting that payments continue over the next ten years, and in return, the district would maintain fire services for the same period. The village is hesitant about a ten-year deal, citing concerns over the fire district’s long-term financial health. According to Cassady, the fire district already faces a structural deficit that could impact its ability to operate effectively, even before any annexations took place. Cassady believes a three-year transition period is more realistic, as it allows time for the fire district to adjust its staffing levels. If an agreement can be reached, the village may consider contracting with the fire district after that period. The village is also planning to annex a portion of land owned by United Airlines and a residential area known as Birch Manor, located at the northwest corner of Linneman Road and Dempster Street. Fire district attorney Karl Ottosen warned that the district will face serious financial challenges within a year due to the ongoing annexations. He noted that the fire district is losing nearly 50% of its tax revenue, and the community needs clarity on 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 no agreement is reached, Ottosen said the fire district may have to significantly cut back on its services, which could affect the safety and security of residents in the area.
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