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Sacchi says tax increase inevitable

(31 posts)
  1. JohnM
    Member

    As I see it, Board members have as much of a right as anyone else to send letters to the editor. Indeed, I’d submit that this type of correspondence is to be encouraged, not derided, as it both serves to enhance the public’s knowledge of the political process and illuminate the thinking of individual Board members.

    I'd also draw a distinction between losing graciously and abandoning your ideals and opinions. To my knowledge, John McCain, while gracious in defeat, has not embraced the Obama agenda.

    With regard to your other points, fair enough. The Board needs to do some thinking. Add maybe Trustee Sacchi has shown the way.

    Consider this: Assuming that we are not going to see the draconian service cuts threatened by the 2010 preliminary budget, and will be spending undesignated reserves to balance the budget, we will burn through these undesignated reserves by late 2010 to early 2011. After that, in order to maintain services, we'll need to tap into capital funds or sell Village assets, or increase revenue. If we decide that tapping capital funds and selling off assets is unacceptable, we'll need a tax increase. However, even if a tax referendum was on the April 2011 ballot, and passed, we would not get the receipts until Fall of 2012. By then, we will have been forced to either cut services, or spend the capital funds or sell Village assets or take out tax anticipation bonds.

    It seems to me that the only responsible thing to do is for the Board--the entire Board--to put politics aside, recognize the problem and take a serious look at getting a tax referendum on the ballot for 2010.

    Posted Wednesday Oct 7, 2009 14:02 #
  2. spatny
    Member

    What does it take to get this across? The fiscal year deficit for the country is $1.4 trillion! The State is billions behind in its bills! The county is faced with a huge structural deficit, and so is every other municipality that I've ever heard of. And yet people keep crying for us to spend money on stuff that, while we might like to have them, and perhaps in a better world would be great to have - this is not alchemy. We can't turn cultivars into gold.

    Take a look at this little video on the county budget:

    I think all our elected officials - and I mean all of them - should be encouraged to pursue savings where they can. This situation is going to be with us for a couple years - minimum. Which is approximately what the last poster said in his last line. So let's stop asking them to "appease us" or anything else. You will soon see your friends and neighbors being out of work and possibly foreclosed upon - not because they were spendthrifts but because they will be victims of a far greater calamity than most people seem willing to admit isupon us. Heidi, the wolf is at the door. Really.

    Now I know people will start screaming about Todd and his relatives and all that. But look at the larger picture - we have the same kind of problems in microcosm, paying for 18 or 19 police, manning a fire station, raising the cost of a vehicle sticker, on and on... So let's stop crying for our own little favorite concepts and try and help our fellow residents get through this in the best condition possible. I believe that solutions that appear to work today will be overrun by what happens in the next twelve months - so we better start thinking about where we can save and better utilize what we have... there are rainier days ahead.

    Posted Wednesday Oct 7, 2009 18:40 #
  3. TonyM
    Member

    Don - I am in total agreement with your last post. These are terrible economic times and it will probably get worse before it gets better. We do need to be as frugal as we can and find as many efficiencies as we possibly can. Knowing that we need to tighten our belts in light of the $1,000,000 deficit for 2010 and your projected deterioration moving forward, where would you look for savings: Police, Fire, Public Works or Parks and Recreation? How would you provide those savings without impacting the level of services that residents expect knowing that we are already providing these services at a minimum acceptable standard?

    Posted Wednesday Oct 7, 2009 20:06 #
  4. spatny
    Member

    Tony - I don't know that we are at "a minimum acceptable standard" in any department. I would like all of them to have what they think they need, but if you don't have it to give you have to make decisions. We will not be able to give every resident or every employee or department what they would prefer to have. Obviously, we could have gotten along very well without buying 61 & 63 and would have been glad to have that money in the bank now - but that ship has sailed. Next year we will have to see what the bids are for Centennial and then make a decision there. Really, there is only one choice, cut to what we think we can live with, and pay the deficit out of what we have. I hope we can sell Northgate. I don't care if they sell 61 & 63, but I wouldn't hold my breath on either.

    Whatever gets cut gets cut. Anything else is just arguing for one constituency or another. Every month something will break that needs repair, and perhaps could be done cheaper if done now - but when you run short you have to sometimes fix it with what's available. I'm very reluctant to burden any of the residents with higher taxes although that looks inevitable. I think we should look at this as a possible six to twelve year recession of staggering proportions, and husband our resources accordingly. I don't say that because I like it, want it, or hope for it. I say it because I see it going that way and it could be just like Japan experienced in the 1990s. We are not immune. I think they may have to make some cuts that will be shocking, but the sky will not fall. People may have to look out for each other. Kids may have to play in pick up games. We may need to consolidate services with other towns. Certainly union contracts and pensions must be reevaluated. If we can get by with one more year on a squad car we may have to. If we can use a driveway we have then we must do that. I predict that 12 months from today this may well look like the good old days. Some may not be effected, some may even prosper, but overall, we need to stop whining about wanting this or that sacred cow and see how we can get through the next few years - and I mean Village, schools, everybody.

    We did all kinds of things during WW II - rationing, newspaper drives, victory gardens - and this may be a time when we should work together again. I'm 72, and quite honestly my wife and I can and do pretty much get by on an income that most here would laugh at. I had my Maseratis and Porsches and Benzs - we raveled the world for years at a time when we were young, so I don't miss now what I always wanted and never had. But families with young kids often can't live as we do. The exigencies and pressures on them are different. I want us to try and not burden them, because I honestly feel that most don't realize how vulnerable they really are. Let's see what we can live without... If we don't try we'll never know.

    Posted Wednesday Oct 7, 2009 20:50 #
  5. spatny
    Member

    FYI -
    WASHINGTON, Oct. 7, 2009

    CBO: Budget Deficit Hit Record $1.4T In 2009 Thanks To Recession-fed Drop In Revenue, Bailouts
    (AP) The federal budget deficit tripled to a record $1.4 trillion for the 2009 fiscal year that ended last week, congressional analysts said Wednesday.

    The Congressional Budget Office estimate, while expected, is bad news for the White House and its allies in Congress as they press ahead with health care overhaul legislation that could cost $900 billion over the next decade.

    The unprecedented flood of red ink flows from several factors, including a big drop in tax revenues due to the recession, $245 billion in emergency spending on the Wall Street bailout and the takeover of mortgage giants Fannie Mae and Freddie Mac. Then there is almost $200 billion in costs from President Barack Obama's economic stimulus bill, as well as increases in programs such as unemployment benefits and food stamps.

    The previous record deficit was $459 billion and was set just last year.

    The Obama health plan would be "paid for" with new revenues and curbs in spending. But the overhaul effort would eat up tax increases and spending cuts that could be used to bring the deficit down.

    Obama has attributed the nation's dismal fiscal situation to the financial and economic crises he inherited. White House Budget Director Peter Orzsag is overseeing the administration's efforts to tackle the soaring deficit next year.

    The huge deficits have raised worries about the willingness of foreigners to keep purchasing Treasury debt. The administration promises that once the recession is over and the financial system is stabilized, it will move forcefully to get the deficits under control.

    Economists worry that the deficits could place upward pressure on interest rates in future years as the government has to offer higher rates to attract investors

    Republicans pounced on the bad news.

    "This new CBO data makes it clear that our children and grandchildren will end up buried under a mountain of debt if we continue taxing, spending and borrowing at these dangerous levels," House Minority Leader John Boehner, R-Ohio, said. "How many alarm bells have to be set off before Washington Democrats get serious about tackling dangerous budget deficits?"

    Check this article and video...

    http://finance.yahoo.com/tech-ticker/article/349445/Bulls-Ignore-Warnings-from-Soros,-Roubini-and-Other-Skeptics

    Posted Wednesday Oct 7, 2009 20:58 #
  6. PAR4
    Member

    With the drop in home values, how many people will be lined up at the Assessor's office asking for an equal reduction in assessment? Is a large drop in property tax revenue on the horizon as well?

    Posted Wednesday Oct 7, 2009 21:07 #
  7. Kelly
    Member

    The RCA better think twice before cutting the Police and Fire Department budgets.

    I have had first-hand experience working with our police department and surrounding suburban municipal police departments. There is a WORLD of difference between our police department and others that are understaffed or mismanaged. I’ve worked on cases that were botched because the police didn’t have the manpower to work the case up properly. I couldn’t agree more with John M’s statements that our department is first rate and must be adequately funded.

    Posted Wednesday Oct 7, 2009 21:31 #
  8. spatny
    Member

    Boehner is a charlatan and should thank his lucky stars that these guys are dealing with the problems, or they would be much worse. But that isn'twhat you asked. I think homes will be (perhaps already are being) assessed at lower rates to reflect their value now. But then the taxing bodies just change the multiplier a couple of points - we saw how that works when the last tax referendum was being formulated. In the next few years I doubt if anyone will see their taxes go down enough to crow about. What is truly worrisome is the downturn in spending that is resulting in lower numbers for sales tax, etc. And the value of commercial property, which will hit back at schools etc.

    Posted Wednesday Oct 7, 2009 21:32 #
  9. mr
    Member

    The county already applied across the board changes in assessments by community. Some were published in the paper a few months ago. I thought that Riverside's went down about 11% or so.

    Changes in the assessed value don't have the affect of lowering taxes. The only way that happens is if your assessment is reduced more than your neighbors in the same taxing district. For example, if Brookfield's assessments were reduced across the board at 15% while ours were reduced only 11%, then a greater share of the cost for RB would be born by Riverside than it had been in the past. If Riverside, Brookfield, North Riverside etc. all had a 15% reduction in their assessments, than their share of RB's budget would be exactly the same as it had been. The only way that that the taxes can be significantly reduced is if RB, District 96, the county, etc were to lower their tax levy. They are allowed by law to increase it for the rate of inflation.

    I don't know if the reduction in sales tax income and any contributions that we get from the state and the feds are automatically pushed to property owners or whether the taxing body is required to lower their budget by the amounts lost from other sources of funding. I only know that the taxing body passes a tax levy and that total budget amount is distributed among property owners based on the percent that their assessed valuation bears to the total assessed valuation in the taxing body. For example, if everyone's assessments went down 50%, there is no way there budget is reduced 50% because they have a certain amount of fixed costs that just don't go away because homeowners properties are worth less.

    I have heard that we will be billed this fall, for the first time for RBs last referendum. Your taxes will go up for that reason alone. People voted to allow RB to increase their tax levy.

    We keep beating up on the village, but their share of your tax bill is currently around 16% The majority of your money is going to the schools and that does not even include educators pensions that are funded (or not funded) by the state. I believe that the municipal governments fund their pension obligations without help by the state, or at least for some reason, theirs are fully funded but state level pensions like educators, legislators are not. The police and firefights may be funded at the state level, I am not sure about that.

    Posted Thursday Oct 8, 2009 09:20 #
  10. TS
    Member

    A tax increase should not be the immediate reaction to the financial difficulties of the village. There is still room for creative thinking. Can local government shift tax revenue from one entity to another?

    District 96 is over funded. Move the excess tax revenue from District 96 control to the Village of Riverside. It should be easy enough to determine the tax revenue generated from Riverside residents and given to 96. Return the surplus back to Riverside.

    We the taxpayers fund the government. The revenues generated are a finite number. As a taxpayer, there is no difference to me between the Village of Riverside, District 96 or the high school district. They all get some of my money. My tax dollars should be shifted to where the need is.

    It is time to start running government like a business. Many of us in business manage budgets. We shift budget dollars from one department to another based on needs and projects. Government (the school districts and the Village) should behave in the same manner.

    Posted Thursday Oct 8, 2009 16:09 #

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