Freedom Township Tax Issue

Everyone knows what a terrible toll the recession and the economy have taken on all of us. And, I am sure that most everyone is not too happy, to say the least, when our great State of Illinois decided to raise our income taxes to a level never seen before, all in the midst of a recession that some have labeled as the worst since the great recession (but, don’t worry, the increase is only “temporary”), and in the wake of historical political scandals that have seen two consecutive governors sentenced to jail for corruption.

For those of us who reside in Freedom Township, it was a small measure of relief when we recently received property reassessment notices indicating that our assessments were being reduced. So it came as a complete surprise when it was discovered that the Eastland School Board of Education decided that the property reassessments in Freedom Township (and Freedom Township only), was, in the Board’s opinion, flawed and that the Board of Education was considering filing an appeal and a lawsuit to overturn them. Surprise quickly turned into dismay when the School Board formally voted to pursue the appeal and lawsuit.

The reassessment of properties in Freedom Township was the result of our Supervisor of Assessments looking at market data generated by the sale of properties, both vacant and improved, and then applying certain reassessment methods and formulas mandated by law. It should be no surprise to anyone that real estate values in Freedom Township have, like most areas, dropped drastically. The number of foreclosures and short sales brought about by mass layoffs and a sluggish economy in general have had a significant downward effect on property values throughout the country, and our area is certainly no exception. And, that trend is forecast to continue for the foreseeable future as the economy limps along and foreclosures and short sales continue to dominate and define the real estate market and market values.

It is a known fact that the taxes generated for the Eastland School District from Lake Carroll properties to fund the district’s operations and debt is, to say the least, quite significant. Over the years, most if not all of Lake Carroll’s property owners have supported the mission of the Eastland School District through our real estate taxes without complaints. Sure, there might be an occasional grumble here and there, but in the end we all recognized the value of a good education and the opportunities it opens for our younger generation. As a matter of fact, a significant number of Lake Carroll residents supported and approved a recent Eastland School District bond referendum to improve and maintain District facilities.

And now, the School Board is the one complaining that they are not going to generate sufficient money from the taxpayers of Freedom Township. How ironic it is that the School Board never complained when assessed values were on the rise. What is particularly troubling is that the reduction in Freedom Township assessments was not arbitrary and capricious. Rather, it was done by an independent third party professional who conducted a careful analysis of property sales and other market data and concluded that a reduction was in order. Yes, the numbers don’t lie. Apparently, the School Board has not yet received the message that we are in a recession, that we have been in a recession since basically 2008, that a huge number of people have lost their jobs and have defaulted on their mortgages, that a significant number of people owe more on their mortgages than their property is worth, that our economy and many of our residents have suffered terribly since that time and will continue to struggle for the foreseeable future, and that all of these factors, to name just a few, have greatly contributed to the freefall of housing prices and values which have resulted in historical reductions in housing values.

And now, the School District will use our own tax dollars against us to appeal and litigate those reassessments. In doing so, the School Board has placed each and every taxpayer in Freedom Township in a very unique position: we are now paying the cost of suing ourselves just so we can pay more taxes to the taxing body. If that wasn’t bad enough, consider the following:

1. I believe that it is undisputed that assessments in Freedom Township have dropped dramatically;

2. With the inevitable drop in assessments, the School Board has very little to gain by litigating the issue other than alienating those of us who reside in Freedom Township. In other words, even if the School Board prevails, their victory will be short - the assessments are going to ultimately be reduced in the not too distant future anyway, so it is just seems disingenuous to delay the inevitable;

3. The cost of litigation is going to be significant, money that could be better spent by the School District in fulfilling it’s mission;

4. Assuming that the School Board prevails, the results may be short term only given the declining real estate market. Spending a significant amount of money on litigating something for long term results makes more sense and can be easier to justify. In all fairness to the School Board, the Board did express their concern that if they don’t do something now, then it could adversely affect their base assessed value in the future. However, once again, the inevitability of the situation is knocking at the Board’s front door right now.

I was at the School Board special meeting when the Board was considering filing the appeal, and I tried to get them to think twice about the wisdom of their intended action by raising the above issues, among others. Ultimately, the Board responded that their only intent in pursuing the appeal and litigation was to make sure that everyone “pays their fair share.” I cannot disagree with that reasoning, but I could not help but feel that is was horribly skewed. If, in fact, that is the Board’s goal, and if, in fact, the property values have declined, is not the Board twisting that goal around by actually asking Freedom Township owners to pay more than their fair share?

What the School Board really needs to do instead of trying to keep assessments artificially high is to properly plan for the inevitable by looking at anticipated revenue and cutting expenses where necessary. That is exactly what other taxing bodies have done to weather this recession. Although the School Board made a point of saying that they have cut expenses, it seems that the Board needs to look at that option with a more realistic view.

The action taken by the School Board appears to be unprecedented and everyone should be acutely aware that while their actions may affect only Freedom Township this time, it could be a different township in the future. This places all residents of all townships in Eastland School District at risk.

I don’t know when the appeals and litigation are going to wind down, nor do I know for certain what the outcome will be, but I do know this: in my opinion, the actions of the School Board are short sighted and they are going to haunt them in a variety of ways for some time to come.

John J. Grotto, President
Lake Carroll Property Owners Association

Wood’s Morrison City Council Notes

Happy New Year! We welcome in 2012 with new expectations! Maybe it is just me, but I cannot believe some of the things happening in Morrison, IL!

First of all-January 31, 2012 at 5:00 pm there will be a PUBLIC HEARING AT THE BASEMENT MEETING ROOM AT CITY HALL IN MORRISON. This meeting will be the PUBLIC HEARING that concerns the “Historic District/Districts” that are being proposed again for Morrison! As far as I know, the public hearing is the only way property owners will be notified according to City Administrator, Jim Wise. All property owners on Main Street and property owners along Route 30 from Jackson to what they call “the Hill” on the West end near the Shell station should plan on attending to get their information first hand. I guess it will be another “OPT OUT” type of involvement. This was brought up at the Morrison Business Advisory Group meeting on Jan. 5, 2012. I was surprised it was not announced at the City Council Meeting on Jan. 9, 2012.

Oh, speaking of the Morrison City Council meeting on Jan. 9, it had a lot going on. During public comment, Everett Pannier endorsed hiring a person for MADC and Chamber to take care of Economic Development for Morrison.

Public comment: Brent Shadle stated he is irate with the IDOT Pedestrian Pathway Revision of the 10 foot wide multi-use path going through his property when they replace the Route 78 bridge on the south edge of town. He wanted to know why a regular sidewalk was not an option. He also stated that Administer Wise threatened him while on his property by stating the city could force him to put in a sidewalk-at his expense-along his property on Academic Drive.

Public comment: Jeff Bramm also spoke asking why the multi-use path was not on the park side of the bridge. He thought it would be more beneficial to the people working at the industrial park. He would like more details.

Gary Tresenriter reported that well #5, French Creek Park, was about 1/3 of the way drilled. They ran into some issues with voids in the limestone…so that slowed the drilling process.

Ordinance #12-01-Amendment to Zoning Ordinance allowing a Tattoo Parlor on Main Street, 2012 Annual Siren Maintenance Contract, MADC Memorandum Contract to hire someone for economic development, and the IDOT Signal Maintenance Agreement were all passed.

I had gone to Dixon to speak with IDOT representatives on Monday about the IDOT Pedestrian Pathway Revision. I was told they were designing the bridge and path on Route 78 using guidelines from the Greenways and Trails Plan of 1999 and the city of Morrison. I asked to table passing the IDOT Pedestrian Pathway Revision until the next meeting so we could have the revision presented to the council in writing with ALL THE FACTS. (3 ayes, 4 nays) A vote was taken. It was voted down. Mayor Drey and Jim Wise both recommended going with the revision with a 10 foot path and voting right away. A second vote and motion to go with the present revision was made and passed (5-ayes, 2-nays).

Jan. 10, 2012 I spoke with Betty Steiner, Whiteside County Enterprise Zone and Economic Development. In 1998 The Greenways and Trails Plan was adopted. A Resolution Reaffirming Support of the Whiteside County Greenway and Trail Plan was pushed through at the November 22, 2011 council meeting. The mayor stated passing this had nothing to do with the Greenways and Trail Plan (only location of the West side of the bridge for the path) but IDOT said since that resolution was passed, we have to go with by reaffirmation. 2 to 3 years ago, IDOT contacted Betty about putting a Multi-use path on the Route 78 bridge when it is replaced. She had no objections. She said the City of Morrison can make the path any width it chooses once it is across the bridge. So I am confused-IDOT says they are going by the Greenways and Trails Plan, Betty says they have no authority and city leaders insist IDOT is controlling everything and insisting on the 10 foot path. Who is telling me the right story? Why can’t we compromise and put in a sidewalk from the bridge to Academic Drive, it is a simple solution. Heeeeeeeeeelp!

More flies in the ointment! The Community Room at the Library will not be taking any more reservations through April 2012. City Administer, Jim Wise, stated that we will be going over budget if we do. Those that already have it reserved will get to keep their reservations. There are some issues about the gas bill (another burner left on over the weekend?). Connie said the library shares a gas meter with the community room…but they haven’t had to pay a bill for electric or gas in the past 15 years because of some agreement the city has with those utilities. She didn’t know the agreement was changed or when. It is one of the few places in Morrison that the residents of all ages can utilize. Seems to me there is a better solution. Wow! Maybe we could get some of the Economic Development money to help with the library/community room gas bill. Most communities are creating positive ways for their residents to stay in their own town for entertainment. Let Morrison be a leader in that endeavor!

Hopefully, after the next meeting on January 23, 2012 at 7:00pm at the Whiteside County Meeting room we will see more new faces. The only way we can make things change is to become a part of the solution! See you there!

A Morrison Taxpayer
Marti Wood

Heads-Up to our Community . . .

The January 9th. City Council meeting covered many topics of importance to everyone in our community. The issues of attention that I especially noted were the use of the limiting of future use of the Odell Community Room and the public meeting of the Historical Preservation Committee scheduled for January 31st. In both cases, these are topics of importance to many of the community and were basically noted and then moved on to other issues without a thorough discussion of their implications for the community. It must be noted also that no public notification of these issues to make it “very public information” was planned to be provided to “the taxpayers,” “ the every day citizen,” “the community.” There should have been and needs to be included - an exchange of information for all involved. However, this is the usual pattern that our City chooses to use to administer our laws, ordinances, and policies for Morrison. People of Morrison start paying attention to what is going on at these City Council meetings and support the basics of what our government is all about - to be involved and to support/encourage open and public discussion on matters of importance to you personally and/or that has significant impact on our town.

I very much appreciate Mr. Wise’s clarification for thecity1.com on the issue of no longer taking any new reservations for use for the Odell Community Room until the end of the City’s physical year. However this announcement clarifying what he meant was made only after many in the community found out by “word of mouth” his singular decision on this matter. The Council at the January 9th meeting had no input into this decision nor did members of the public. Mr. Wise’s decision was based upon reviewing the Community Room’s bills/expenses and noted an annual excess of cost in the use of the Community Room. I support his attention to our overall City budget; however, I am challenging if he knows how the Room is used regularly for multiple Morrison groups, organizations, and services as the monthly Senior Health Programs of the County Health Department, Whiteside County Seniors Program, and regional services for health and general senior information. I question if Mr. Wise is aware of how many families and private individuals use this Room frequently as it is our only Community Room in Morrison, unless we use the generous facilities provided by Emmanuel Reformed Church and the Morrison United Methodist Church of Morrison. These are very active churches and use their facilities very well and frequently. We have no community center - this is it!!!! The delivery of such a very significant message to Morrison should have come after discussion with the Council based on community input of the great service from this Community Room. I support protection of our Budget for common sense expenditures. The best decisions for our community come when concerned people put our heads together with elected officials and City administration for common sense decisions for the good of our total community.

Secondly, noted at the January 9th City Council meeting: the topic of a public meeting to discuss and clarify the boundaries of the Morrison Historical Preservation area as it pertains to individual homes, businesses, and all inclusive structures and services will be discussed on January 31st, Tuesday, the lower level room of City Hall. Please contact members of the Historical Preservation Committee or City Hall for the specific time of this very important community meeting. Be an active part of the decision making for this Plan for Morrison’s growth and development with your questions, concerns, and constructive comments of information and fact. It is of great significance to the growth and development of our community that has far reaching consequences for everyone.

Nance Anderson
Morrison, IL

Senate Week in Review

From Sen. Tim Bivins

Jan. 6, 2012

Budget projections released by the Quinn Administration during the week offer a bleak preview of the state’s fiscal situation, though a Senate Republican plan could serve as a common sense road map to financial recovery.

The need to address the state’s dire budget situation is further underscored by a new report released Jan. 5 by a global credit rating agency. Fitch Ratings emphasized the importance of reining in the state’s Medicaid and pension obligations, and pursuing long-term solutions to finance state government operations.

Illinois’ ongoing budget woes continue to be the preeminent issue facing state leaders. When the 2012 legislative session gets under way later this month, one issue is likely to overshadow all others – the continuously weak position of the Illinois state budget.

That was reinforced when the Governor’s Office of Management and Budget on Jan. 3 released preliminary revenue and spending projections for the next three fiscal years. While Gov. Pat Quinn isn’t scheduled to deliver his formal budget address until Feb. 22, the projections emphasize the severity of the financial challenges facing Illinois.

For the coming fiscal year, the Governor’s office promised a tightly balanced budget that would spend $33.7 billion, based on $34.1 billion in projected revenues. That budget would keep spending slightly under revenues, allowing for a modest surplus to reduce the state’s backlog of bills.

The projections reinforce years of Senate Republican warnings that the state’s Democrat leaders have continued to spend well beyond the state’s means. In response, last March the Senate GOP released a detailed “Reality Check” budget proposal to balance the budget, eliminate the state’s deficit, and phase out the Democrats’ January 2011 tax increase. While Democrats rejected the Senate Republican plan last spring, the road map of possible reductions could serve as a guide in 2012.

Echoing Senate GOP calls to draw the line on spending and eliminate non-essential state programs or services, the outline presented by the budget office indicated virtually all state spending must remain flat for the next three years. In order to achieve a balanced budget, there could be no increase in education, public safety, welfare or healthcare spending.

Still, there are achievable alternatives. The “Reality Check” plan offered by Senate Republicans last March has a menu of more than $6.5 billion in spending cuts and revenue generators to bring the budget into line with available revenues before the temporary income tax increase is supposed to expire in three years.

However, keeping state spending static is easier said than done, unless changes are made. In just one area of state spending, Medicaid, current projections show that Illinois would need to spend about $3 billion more next year just to keep its current level of services and prevent the existing backlog of bills from growing.

Medicaid costs have skyrocketed during the Quinn-Blagojevich years, growing by $4 billion in just eight years. The current year’s budget pushes more than $2 billion in bills into the upcoming fiscal year and, even with that juggling of the books, the state will still end this budget year more than $500 million in the red, according to the Governor’s office figures.

Holding the state’s healthcare spending flat for four years, as the Governor suggests, will require taming the Medicaid monster. Senate Republicans outlined an extensive series of possible savings in the “Reality Check” plan. Just as Medicaid spending accounts for a major portion of the budget, large savings are also possible by trimming the program.

For example, it is estimated that simply aligning Illinois’ generous Medicaid benefits to the national average would save $1.6 billion. Other savings could be achieved by increasing patient co-pays, rolling back eligibility at the higher income levels, establishing asset tests across the board and reviewing optional services not mandated by the federal government.

Quinn’s latest budget outline would still leave the state more than $800 million in the red at the time the tax hike is supposed to end. But that is an improvement over the $3.4 billion annual hole ($14.6 billion cumulative) that was projected last March.

There were also signs that the Governor’s office may finally come to the table to negotiate genuine savings in the state’s deeply-indebted pension systems. The Governor has announced a work group to negotiate further reforms to the systems.

The Governor’s budget office plan also anticipates level funding for education through 2015. To achieve savings in education, Senate Republicans last year proposed reviewing all programs not related to basic education and mandated categorical grants, reforming the special education formula that benefits Chicago schools over other schools in the state and bringing under control the massive growth in the state’s supplemental grants targeted to Chicago schools.

Other ideas Republicans put on the table last year included $90 million in savings by eliminating questionable programs and agencies, reducing costs in the state’s employee health insurance program, further reforms of the state’s workers’ compensation system and eliminating non-essential programs and policies put into place under ousted Governor and convicted felon Rod Blagojevich.

A new review released Jan. 5 by the Fitch Ratings agency highlights the importance of bringing the state’s spending in line with available revenues. According to the recent review, Fitch left Illinois’ credit rating as the second worst in the nation. Only California has worse credit than Illinois.

The ratings agency gave the state an “A-minus” rating and included a “stable” outlook, meaning that it does not anticipate that the credit worthiness of the state will change in the near future.

The rating did come with a warning that if the state uses one-time revenues to increase permanent spending, or pushes off payments to balance its budget (which Illinois did this fiscal year to the tune of $2 billion), the state’s credit could be downgraded.

The agency also warned that Illinois must get its financial act in order before the temporary income tax expires in 2015.

The rating agency noted that even with a 67 percent tax increase, Illinois will finish the current fiscal year with a $508 million deficit and although the state reduced its backlog of bills by about $1 billion last year, that progress will be more than offset this year when the state again pushes bills off into the next fiscal year.

The rating agency said Illinois must address its long-term pension liabilities and bring skyrocketing Medicaid expenditures under control. Fitch noted that state debt is above the national average and that Illinois’ unemployment rate was above the national rate in November.

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