THE JOURNAL & TOPICS NEWSPAPERS | WEDNESDAY, APRIL 16, 2008
Possible LGH Parking Tax Hike Causes Stir
By CRAIG ADAMS
Journal Reporter
An often-heated discussion about a parking garage tax increase was a focal point of the Park Ridge Finance Committee of the Whole meeting on Monday, Apr. 14.
Aldermen suggested the tax increase at a budget workshop in February, but city staff later eliminated it from the final proposed budget. Mayor Howard Frimark said, "I think the council decided they were rambunctious and looking for revenue." An option of raising the tax five or 10 cents per vehicle increased to 50 cents during the workshop.
Dr. Bruce Campbell, CEO of Advocate Lutheran General Hospital, spoke to the council on Monday. "Parking at Lutheran General is my biggest headache," he said. Campbell stated the hospital receives more complaints from patients and staff regarding parking than any other is sue. He explained that employees in one garage pay $40 a month to park with the city receiving $8; the other garage costs $20 a month with $8 of that also going to the city. For each hourly parker paying $2 for the first two hours, the city receives 50 cents. "This is getting pretty close to the death tax number," Campbell said. "We hope you won't increase the taxes. We don't feel if you did, we could pass this on to our employees or our patients."
Campbell explained he feared competition from other hospitals that do not pay for parking. Ald. James Allegretti (4th) questioned that.
"Do you anticipate that you would lose patients if the charge for parking would increase?" he asked.
"I've had patients tell me they're never going to come back," Campbell replied. He added that some doctors have opted to move their offices offsite to eliminate the parking fees.
Campbell also spoke of the community contributions of the hospital including educational programs and uncompensated treatments. "I am very proud of our hospital," he said. "I do feel we try to do our fair share."
Ald. Frank Wsol (7th) raised historical property taxes as an issue.
"About 11 years ago, Lutheran General was paying $14 million. Today, it's paying $5.5 million," he said. He explained the reduction was due to corporate restructuring of the hospital and that the "tax contributions to the community were grander." He admitted doubling the parking tax might not be the best solution, but added, "I think the pendulum is closer to your side of the table than the community's side of the table."
Tempers flared when Ald. David Schmidt (1st) pointed out employees or patients who use public transportation recently had a larger cost increase than what the city wanted for parking.
"The city needs this money," Schmidt said. "The majority of your patients are not going to be there more than five or 10 days out of the entire year," he said. "It's not going to cost you anything, it's not cumbersome, and the city needs this money."
Campbell replied, "It does cost us something. We'll have to replace that revenue." He asked Schmidt, "What other town charges up to 40% of a parking ticket in tax?"
Schmidt replied he didn't know and asked, "Do you care about Park Ridge? There's a balancing there." He added, "The city needs help and you're telling us you won't."
Campbell said, "It's up to you if you pass this particular tax. I think it's unjust."
Ald. Donald Bach (3rd) tried to explain the similarities between Park Ridge and downtown Chicago hospitals that charge considerably higher rates for parking.
"The citizens of Park Ridge have asked you tonight for consideration. We're in a bind; it's a tough year for everybody," Bach said. "Parking is a premium here. I'm going to be voting in favor."
Campbell asked if any other garages pay the tax, calling it "a specific tax to Lutheran General and to the patients and employees of Lutheran General." Frimark later explained the tax would also apply to the new parking garage in Uptown.
Ald. Richard DiPietro (2nd) tried to compromise with a 25-cent increase instead of 50 cents.
"Would something like that be a tremendous burden?" he asked.
Campbell reiterated he was reluctant to do anything with parking revenue. He then offered to find new ways to partner with the city.
"We have a maintenance shop for our vehicles; maybe there's a way we could work together and save Park Ridge money," he said. "The parking revenue is just such a sore point."
DiPietro then suggested Frimark, the city manager, and the director of finance meet with Campbell later to try to work out an agreement before next Monday's council meeting. Wsol disagreed with the idea but DiPietro reminded him the council could still enact any tax it wanted regardless of the negotiations.
Schmidt agreed with Wsol.
"This is our job. We are supposed to decide taxes, not the Mayor and not the city manager," he said. "If we want to raise the tax, then we should raise the tax."
Council members then voted 5-2 to send the three-person team to negotiate with Campbell with Schmidt and Wsol voting against the idea.