Committee of the Whole, 25 Aug 2026: Sales Tax Hike to Fund Pensions and Streets

Northbrook trustees will weigh a proposed increase in the Home Rule sales tax and continue work on formalizing how the Village Board operates and appoints commissioners.

Key items

Home Rule Sales Tax Increase (1.00% to 1.50%) — A half-point sales tax hike would affect prices on most purchases in Northbrook and is intended to address pension shortfalls and street infrastructure costs.
Fire and Police Pension Unfunded Liability — The proposed tax revenue would be earmarked specifically to reduce the Village's pension debt, a long-term financial obligation that affects the Village's fiscal health.
Municipal Street Repair Funding — Once pension liabilities are retired, the new tax revenue would flow to street maintenance and capital projects, directly affecting road conditions for residents.
Commission Appointment Protocols and Volunteer Handbook — New rules and a formal handbook will govern how residents are appointed to Village commissions and how those bodies interact with staff and trustees.

Full agenda — click any item to expand

Home Rule Sales Tax: Possible Increase from 1.00% to 1.50%

Staff will present information on the Village's local Home Rule sales tax and lay out options for raising it by half a percentage point. The proposed increase would be dedicated first to paying down unfunded liabilities in the Fire and Police Pension Funds. Once those pension obligations are retired, the revenue would shift to funding annual municipal street repair, maintenance, and related capital costs.

Village Board Protocols and Strategic Plan Implementation

Trustees will continue a discussion begun at an earlier meeting about rolling out the Village's adopted Board Protocols and Strategic Plan. The specific focus for this session is on how commission appointments are handled under the protocols and the Municipal Code, as well as development of a handbook for volunteer commissioners, staff liaisons, and trustee liaisons.

What actually happened

Committee of the Whole, 25 Aug 2026: Home Rule Sales Tax Increase Weighed

The Northbrook Village Board discussed a potential increase to the Home Rule Sales Tax from 1.00% to 1.50% to address growing police and fire pension liabilities, directing staff to return with additional revenue options for comparison.

Home Rule Sales Tax: Possible Increase to Address Pension Liabilities

Chief Financial Officer Steve Drazner presented an overview of the Village's current police and fire pension liabilities and outlined potential sales tax increases as one mechanism to address them while protecting Northbrook's AAA bond rating. Trustees did not reach a decision on the tax rate itself; instead, they reached consensus to have staff return at a future meeting with a broader range of revenue-generating options for comparison and consideration.

Commissioner Handbook and Working Group Formation

Deputy Village Manager Jim Hawkins briefed the Board on implementation of the adopted Village Board Protocols and Strategic Plan, covering commissioner appointments and vacancies, attendance requirements, ethics and training expectations, and the development of a commissioner handbook. Trustees agreed that a working group should draft the handbook document. President Ciesla, with Board consensus, named Trustees Hebl and Reese and Commission Chairpersons Elisco and Reynolds to participate; the Village Manager will select two staff liaisons and confirm participation with the Chairpersons.

Read the official documents

{
  "card_hook": "Northbrook trustees weigh raising the Home Rule Sales Tax from 1.00% to 1.50% to cover police and fire pension gaps.",
  "key_items": [
    {
      "title": "Potential Home Rule Sales Tax Increase",
      "why_matters": "A half-point sales tax hike would affect prices at Northbrook retailers and is being studied as a way to close the village's police and fire pension funding gap."
    },
    {
      "title": "Police and Fire Pension Liabilities",
      "why_matters": "The CFO's presentation signals that pension costs are significant enough to prompt the board to consider new revenue sources to preserve the village's AAA bond rating."
    },
    {
      "title": "Commissioner Handbook Working Group",
      "why_matters": "A new working group of trustees and commission chairs will shape the rules governing how volunteer commissioners are appointed, trained, and held accountable."
    }
  ]
}

Read the official documents

Agenda