ROCKFORD, IL - (WIFR) A couple of capital projects in Cherry Valley are on the back burner because there's no money to pay for them.

Village leaders are proposing a one percent sales tax increase that could raise about $1.9 million dollars. And it could also reduce a projected budget deficit.

"There are projects that have been delayed because we simply don't have the funds to do them," Cherry Valley Treasurer, Karen Melloch said.

One of those projects involves drainage issues near Swanson Park. You may remember in February, a special tax was proposed but was shot down after some petitioners said it unfairly targeted them. But some locals have now said they support this new tax because it's for improvements.

"They need it. It's a thing. Nobody wants it. But how are things gonna keep rolling. They're not, they're not we're gonna stay in a rut," Shopper, Don Freeman said.

Most of the money will come from CherryVale Mall because its the largest retail center in the village.

To see how the one percent sales tax actually computes, we're gonna take this jacket and tack one extra percent on it. Then, this $60 jacket becomes about 60 cents more.

But that extra change is too much for some on a fixed income to give up.

"I'd rather not have any more increases. My income doesn't increase accordingly," Shopper, Nancy White said.

And some businesses can't afford a tax increase to ward off any potential sales.

"I understand Cherry Valley's position they need money for capital improvements, but I really wish they would look at ways to cut spending before they look at ways to raise taxes," Harley-Davidson Store Owner, Mel Kegel said.

However, village leaders said they chose the tax increase option because it had the least impact on residents since shoppers from all over the Stateline would pay too.

The tax increase will be on Cherry valley's referendum in November. If it fails, it will force village leaders to look for other options that might hit residents there more directly.

If voters approve the Cherry Valley sales tax increase, it would raise the sales tax to be equal to Rockford.