Amend HP

The BEACON:

Budget Enhancement And Community Optimization Network

Objective:

This proposal introduces a tiered tax framework for large-scale entities grossing over $15 million annually, operating within the boundaries south of Roger Williams Avenue and east of Green Bay Road. The plan is designed to ensure these entities contribute fairly to the city’s financial health, environmental sustainability efforts, and educational programs. Through taxes on carbon emissions, naming rights, and amusement activities, the proposal will significantly increase revenue, adding approximately 5% to the city’s annual budget. This additional revenue will strengthen Highland Park's financial stability and provide resources for key initiatives.

Furthermore, the plan includes an increase in the Mayor's salary, recognizing that the city needs to attract strong leadership to meet its future challenges. By offering competitive pay, Highland Park can ensure it receives the high-quality leadership it requires, moving beyond the limitations of the current compensation, as "you get what you pay for." Existing agreements with qualifying entities will be honored, with full tax implementation deferred until their expiration​.

In alignment with internationally recognized environmental standards, and specifically following the exemplary carbon emissions framework established by the progressive policies of Sweden, any entity meeting the aforementioned gross revenue threshold and location boundaries shall be subject to a carbon emissions tax, calculated at the rate of $130 per metric ton of carbon dioxide emitted. This tax is applicable to entities whose operations result in substantial environmental impacts, including but not limited to emissions arising from vehicular traffic related to the entity’s events or activities.
For example, a qualifying entity such as the Ravinia Music Festival, which hosts approximately 135 events annually and draws an estimated average of 1,500 cars per event, would generate significant vehicle emissions. According to the EPA, each vehicle contributes 0.008 metric tons of CO2 per average 10 mile round trip. When multiplied by the total number of vehicles attending these events over the course of the year, this results in an estimated 1,620 metric tons of CO2 emissions annually.
Example Calculation Based on 1,620 Metric Tons of CO2 Emissions:
1,620×130 = $210,600 USD annually
Any entity whose gross revenue surpasses $15 million annually and which operates within the demarcated boundaries south of Roger Williams Avenue and east of Green Bay Road, and which utilizes the name, designation, or any geographic identifier or culturally significant landmark associated with the City of Highland Park, any of its districts, or subdivisions, for purposes of marketing, branding, promotional materials, or other public-facing communications, shall be subject to a 1% naming rights tax. This tax is instituted to ensure that entities benefitting from the historic and cultural prestige of Highland Park contribute equitably to its ongoing vitality.
Example Calculation Using $35,000,000 in Sales:
35,000,000×0.01 = $350,000 USD annually
In the instance of any amusement entity whose annual gross revenue exceeds $15 million, and which operates within the demarcated boundaries south of Roger Williams Avenue and east of Green Bay Road, said entity shall be subject to a 12% amusement tax. However, in cases where existing contractual agreements preclude the immediate implementation of this tax (such as the pre-existing agreement with Ravinia Music Festival, set to expire on Jan 1, 2029), the enforcement of this tax shall be deferred until the expiration of said agreement.
Moreover, entities benefitting from property tax exemptions, including, but not limited to, those operating under non-profit status, shall, upon the expiration of their current agreements, have the property tax equivalent—i.e., the amount they would otherwise be liable to pay in property taxes—incorporated into the amusement tax.
Amusement Tax Calculation Using $35,000,000 in Sales:
35,000,000×0.12 = $4,200,000 USD annually
Property Tax Equivalent (Example: Ravinia Festival's $1,400,000 exemption):
Amusement Tax+Property Tax Equivalent = 4,200,000+1,400,000 = $5,600,000 USD annually
In alignment with the city's objective to attract and retain highly qualified leadership, $160,000 annually from the general fund will be allocated to the Mayor’s salary. This ensures that Highland Park offers competitive compensation for its top leadership position while maintaining fiscal responsibility.
The proposed budget, driven by the BEACON framework (based on $35,000,000 in annual revenue), will generate $6,160,000 annually. After accounting for the Mayor's salary, $6,000,600 remains to fund other essential city initiatives. The salary for the Mayor will come from the Government Services portion of the general fund, which allocates 5% of the overall spending. This ensures that the increase in the Mayor's salary is covered without adding any additional tax burdens to the citizens of Highland Park.
Furthermore, the Mayor’s position will be subject to a two-year term limit, promoting leadership renewal and ensuring that Highland Park benefits from fresh ideas and a sustained focus on community-driven initiatives. This increase in salary reflects the city's commitment to attracting top talent and ensuring effective governance.
Amusement Tax Calculation Using $35,000,000 in Sales:
Total Revenue of $6,160,000 - Mayor’s Salary of $160,000 = Remaining Funds: $6,000,600 USD
Calculating the remaining annual budget minus the updated Salary:
6,000,600 in new Revenue / $118,000,000 of 2024's annual budget = 5.08% of the annual budget

***This section efficiently supports the Mayor’s salary while maintaining sufficient resources to meet the city's financial goals, including the allocation of funds toward Local Business Support (35%), Education (30%), Infrastructure (30%), and Government Services (5%).***

Side-by-Side Comparison of Revenue

**Using Ravinia Festival as ONLY an example**

**Based off an average of $35,000,000 in annual revenue as only an example**

Revenue StreamCurrent (Before New Taxes)New Taxes (Before Agreement Expiration)Amusement Tax (After Agreement Expiration)
5% Admissions Fee (Example)$1,750,000$1,750,000N/A
Carbon Emissions TaxN/A$210,600$210,600
Naming Rights TaxN/A$350,000$350,000
12% Amusement TaxN/AN/A$4,200,000
Property Tax EquivalentN/AN/A$1,400,000
New Mayoral SalaryN/AN/A($160,000)
Total Annual Revenue$1,750,000$2,310,600$6,000,600
% of City's Budget1.4%1.95%5.085%

Conclusion

This tax proposal offers Highland Park a transformative opportunity to create a fair and sustainable revenue stream from large-scale entities generating over $15 million annually. By implementing this tiered tax structure, the city will ensure that these entities contribute equitably to Highland Park’s financial well-being. While certain taxes may be deferred due to existing agreements, the full tax structure will take effect once those agreements expire, guaranteeing long-term stability for the city.

With this plan projected to contribute over 5% of the city’s annual budget, it will significantly bolster Highland Park's fiscal resilience. Furthermore, by efficiently allocating funds, including providing a competitive salary for the Mayor’s position, the city is ensuring strong leadership and a continued commitment to fairness, sustainability, and the prosperity of its community.

The proposal urges the Mayor and City Council to adopt these changes and lead Highland Park toward a more financially secure future, benefiting not just the government but the citizens it serves.