Story posted Thursday, November 12, 2009
28% Prop Tax Hike?
Ordinances Await Final Approval
By CRAIG ADAMS Journal & Topics Reporter
Rolling Meadows aldermen on Tuesday, Nov. 10 heard final departmental budget presentations then approved on first reading ordinances needed to pay for them.
With more changes still expected before final approval, the council agreed to a 28% increase in the property tax while still looking at a deficit of $317,000. All ordinances must come before the council again for final approval.
At an earlier meeting, aldermen chose not to transfer one million dollars from the vehicle replacement fund to the general fund to close the deficit. City Manager Sarah Phillips tried again on Tuesday to change their minds.
"It would still be my recommendation that that million dollar transfer still take place," Phillips said. She offered aldermen alternative plans that would lower the property tax increase to 18% if the money transferred between funds. She explained that even though the money is earmarked for vehicles, it is still money paid by the taxpayers. "The lower we can bring that (tax increase), the happier they'll be," she reminded aldermen.
The council did not agree and instructed her to continue to find other ways to save the city money. Ald. Brad Judd (4th) called the transfer a way to "hide that we can't stop spending money." He worried that the transfer would mean the city would not be able to buy equipment it needs later. "When you don't make enough money, you have to make changes," he said. "We have to eliminate expenses somewhere along the line. I won't support transferring money so we can continue to spend."
Although all the levy and fee increase ordinances were on the consent agenda, aldermen requested separate discussion of all of them except four for special service areas. Those four are special property tax levies for areas that received parkway, storm sewer, water main, or traffic signal improvements.
The council discussed removing a levy of $153,000 for the 911 Emergency Fund, but that proposal was defeated by a vote of 5–2 with Judd and Ald. Glenn Adams (5th) voting to eliminate it. The money is used to pay for the contractual agreement with Northwest Central Dispatch, equipment used in the city's emergency vehicles, and to recoup the deficit in the fund, Phillips explained.
Ald. John D'Astice (6th) who asked to discuss the city's total levy stated, "I understand that this is just for a first reading so we can take action on it in the future." He then added, "I am adamantly opposed to a 28% tax increase." The rest of the city's tax levy was approved by a vote of 5–2 with D'Astice and Ald. Jim Larsen (7th) voting against it.
The levy for the library was a closer vote as aldermen complained again about salary increases for the employees, echoing thoughts during the budget presentation on Oct. 20. On that day, Dave Ruff, library director, explained the library always gives a raise of the Consumer Price Index plus 1%.
"We don't have any other increases. There's no merit pay, there's no additional bucket of money," he said. Ruff explained when times are good, the raises are always at the same rate. "When we're not in hard times, we had sold our staff that keeping them just above CPI would be sufficient," he said. He asked that the board "not bail on them" when the times are not good.
Judd wanted the raises removed from the levy. "They want to continue to raise salaries with the times the way they are," he complained.
Larsen argued for keeping the raises. "To advocate having the salaries reduced doesn't take into account what they've accomplished over the years," he said.
Adams agreed with Judd and brought up residents in town who have taken wage freezes or cuts at their jobs. "I see nothing wrong with asking every employee in the city of Rolling Meadows to do the same thing."
The council approved the levy by a vote of 4–3 with Judd, Adams, and D'Astice voting against it.
Aldermen also agreed by a vote of 5–2 to change the dog licensing fee to $5 for all dogs, regardless of if they are spayed or neutered. Judd and Adams voted against the change with Judd making the suggestion of eliminating the licensing altogether. "We're spending $5,500 to make $5,500," he said of the administrative costs of the program. The council also removed a proposed lifetime license option from the ordinance.
Judd and Adams also opposed the vehicle license fee increase from $22 to $25. "Until we eliminate the inefficiencies, I'm not going to vote to increase fees for residents," Judd said before the vote.
Judd pushed for, and found agreement with, a proposal to lower the water and sewer rate increases. Although the city of Chicago raised water rates to municipalities by 14%, aldermen considered a 14% increase to the residents would generate much more than the water expense. Phillips explained the extra money was needed for increases in maintenance costs and more frequent water line breaks due to aging infrastructure.
Using the assumed increase of $8.35 per household per month, Judd explained, "We're going to stick every single resident for $100 a year." He added, "This is going to hurt the renters, this is going to hurt some of the seniors... it's raising more than I think we need to raise."
He offered a compromise by raising the rates 9% instead of 14% to just pay for the increase in the price of water. Adams, D'Astice, and Ald. John Pitzaferro (1st) agreed with him, and then the council unanimously approved the lessened increase.
Judd used a similar argument for a proposed 5% increase for refuse rates. The rate was based on a 3% price bump in the city's contract with Groot and the increase in costs for fuel, dumping fees, and maintenance. Judd suggested making it a 3% increase instead, a proposal opposed by only Ald. Barb Lusk (2nd) and Larsen. The aldermen then voted unanimously for the altered ordinance.
The council also approved an ordinance eliminating salary increases for non-union personnel. Ald. Larry Buske (3rd) asked city staff to offer public works employees a chance to devise their own concession package as the city did with the police and fire departments. "See if they want to make their own concessions instead of payroll freeze," he said.
With the understanding that staff would investigate the possibility before final votes, aldermen unanimously approved the ordinance.
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