Niles plans to raise the village sales tax by a quarter of a cent to finance an anti-flooding building program, as well as police and fire pension payments.

The increase will generate an estimated $2 million per year for village coffers. The tax increase takes affect July 1.

Mayor Bob Callero said the program will solve some, but not all, of the villages flood woes.

“This will be a major improvement and we have to start someplace,” Callero said. “Flooding has been ignored for 30 years. Let’s not ignore it any longer.”

The village intends to borrow about $12.5 million to finance stormwater improvements. This would be paid off over 20 years at about $1.3 million per year.

The ordinance, which was approved 4-2 on Jan. 24, states the extra sales tax receipts will be deposited in a separate account used for stormwater relief, and “residual” leftover funds to finance police and fire pensions.

Niles is $49 million behind on its pension payments due in 2040.

Trustees Rosemary Palicki and Louella Preston voted against the measure.

Preston said she voted against the measure because she couldn’t support an ordinance that formalizes funds for a stormwater program when the details of the storm plan have not been determined.

A public meeting detailing the final recommendations of the Storm Water Commission will be held in March, and specific anti-flood projects are scheduled to be named April 24.

Niles officials are also poised to further increase sales taxes another quarter of a cent within the Golf Mill Mall to fund mall enhancements. That matter is scheduled for the Village Board meeting later this month.