Story posted Wednesday, November 18, 2009
You're Going To Pay
Tax Hikes Await Final Approval
By TODD WESSELL Journal & Topics Editor
Aldermen Monday night inched closer to final approval of several tax and fee increases as the city closed in on adopting a new $101 million year 2010 budget.
Tentative approval was given to doubling the local tax on gasoline purchases, increasing the city's taxes on electricity and storm sewer use and the amount of money paid for water. A proposed slight increase in the city's tax levy, which determines Des Plaines' portion of real estate taxes, also moved forward with final approval expected within the next few weeks.
And if that wasn't enough, fears that Des Plaines will not be able to meet certain bond payments that are due on Dec. 1, led to the approval of a plan to borrow $6.5 million to pay off those bills over the next 60 days. The main reason for the city's shortness in cash is because of late property tax revenue payments from Cook County due to the recent delay in distributing tax bills.
The tentative approval of these hikes however, was not unanimous among the city's eight council members. On the proposal to increase the fee on gasoline purchases from 2 cents per gallon to 4 cents, aldermen were divided on whether the increase should be 1 cent or 2 cents.
"I'm concerned that we will have one of the highest if not the highest local gas tax in the area," said Ald. Mark Walsten (6th). "People will drive to other towns to buy their gas. I'd like to drop it to 1 cent extra."
Ald. Jim Brookman (5th) echoed Walsten's comments saying doubling the tax will hurt Des Plaines gas stations that in recent years have been subjected to two similar city taxes on fuel purchases.
"This is not the year," added Finance Committee chairman Ald. Jean Higgason (4th).
"It's tough out there," said local resident Brian Burkross. "I look at a fee as another tax. Des Plaines is more expensive than other towns. I can buy a lot of things cheaper in DuPage County." Burkross' comments seemed to irk City Manager Jason Bajor who said the city has worked hard in recent weeks to reduce expenses.
"We're the ones who have had to do the heavy lifting," he said.
"My concern is that stations will close. This is not the year," added Higgason.
City officials have been pushing for the tax and fee hikes---along with major cuts in personnel---to close a $5.2 million anticipated deficit in 2010. A total of 38 positions are on the chopping block and major cuts in other funding such as for the Des Plaines History Center have been approved. At the same time, aldermen have agreed to spend more on flood relief such as rear yard and street drainage programs. Some of the tax increases are intended to accelerate those flood relief programs.
During the discussion on the gas tax increase proposal, local station owner Nick Gianaris asked aldermen to reconsider the proposal arguing that the hike will only lead to decreased local sales. One estimate is that the gas tax hike will generate only half of the hoped extra $800,000.
After the discussion, aldermen voted 4 to 4 on the gas tax increase. Mayor Marty Moylan broke the tie in favor of the hike.
As for the other tax and fee hikes, the proposed increase on electricity use is intended to raise an extra $1 million for the city. The average homeowner will pay approximately $2.22 per month or $26.64 annually. Aldermen tentatively approved this proposal by a 6 to 2 vote. Ald. Dan Wilson (7th) and Higgason voted against the plan with Wilson stating that he believes the tax is asking for too much money. Higgason again said now is not the time to add another tax.
On the proposed sewer user fee increase, council members again voted 6 to 2 in favor with Higgason and Ald. Brookman casting "no" votes. Brookman asked that a provision be included in the ordinance that would require annual reviews of this tax increase to determine if it remained necessary. The sewer fee increase is based on homeowners' water consumption. Property owners would pay another $26 or $27 per year based on how much water they use. For the purchase of water, the average homeowner will pay about $15 more per year. That increase is due to an increase imposed by the city of Chicago which supplies Lake Michigan water.
Aldermen backed away from adopting a formal resolution establishing a year 2010 budget until further consideration can be given to the proposed fee increases and whether or not to continue funding all or part of the functions of the Human Services Dept. Bajor had proposed that the department be nearly eliminated, which if approved, would decimate the city's ability to provide a variety of social services to people in need as it has done for many years.
Approximately 75 people attended Monday night's meeting in city hall asking aldermen to reconsider the approximately $195,000 in Human Services cuts. They agreed to reconsider those cuts and will likely discuss the matter further in early December. Jim Ernst of Our Lady of Hope Catholic Church on Des Plaines' south side said 175 members of the congregation signed cards asking that the matter be reconsidered. Members of many other churches did the same, he said.
Maine West teacher Paul Bartholomae also asked aldermen to reconsider Human Services cuts. He explained that he and students of his over the years have worked to build wheelchair ramps for seniors and others in need. He praised the Human Services Dept. for its efforts to assist those people.
As for the hike in property taxes, the Des Plaines Public Library has yet to finalize its budget. Board members were expected to discuss the matter last (Tuesday) night. Once its spending plan has been approved and the finishing touches in place for city spending, the tax levy matter can be resolved. A tax levy is a sum of money government asks residents to provide every year in the form of real estate taxes to fund regular operations.
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