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1. corbi328
   Member

   At last night's Board Meeting, Trustee Smith talked about the limitations imposed on municipal governements by Illinois' Tax Cap law. I think his comments were right on the mark. In light of these comments, I thought it would be helpful if I posted the link below which leads to a web page that does a good job of explaining the Tax Cap. My read on the situation is that the limitations imposed by the tax caps have wreaked havoc on logal levying bodies (Village, Schools etc..)and the TIF is a good way to help counteract these limitations. Understanding the tax cap is especially improtant in understanding the calculation I provided in another thread estimating the amount of money (an average of less than $26,000 per year over the life of the TIF) that District 96 would forgo absent the TIF. Regardless of EAV growth, because of the Tax Cap laws levying bodies can only levy up to 5% more than their previous year's levy. The Tax Cap laws do not apply to new/redeveloped properties. This is a VERY IMPORTANT concept to understand and one of the main drivers behind the need to implement a TIF in Riverside.

   http://www.revenue.state.il.us/LocalGovernment/PropertyTax/pio62.htm

   Posted Tuesday Dec 19, 2006 10:42 #

2. Catherine
   Member

   Thank you for posting this. It was mentioned in connection with the inability to raise revenues. Perhaps you can answer some questions I have on that topic. Are you satisfied that the annual budget has eliminated all the fat, such that our deficit cannot be reduced? What are the infrastructure improvements that are needed, and does the TIF imply that they are only needed in the TIF area? ( I am thinking of sewage, etc.) How much money do we need, and does the 10% increase in property and tax revenue you thought might ensue from the TIF meet the need? Thanks.

   Posted Tuesday Dec 19, 2006 10:51 #

3. Catherine
   Member

   Also, can Riverside by referendum vote to override the tax cap?

   http://www.igpa.uiuc.edu/lib/pdf/LocalPolicyToolsExamined.pdf

   Posted Tuesday Dec 19, 2006 11:31 #

4. corbi328
   Member

   Yes, I am confident that the fat has been eliminated from our budget. I do agree that longer term, something probably should be done about pension benefits for municipal employees (police, fire etc..), but Riverisde is not unique in this regard and certainly will not lead the charge on this cause. The changes will mimick similar changes that have long ago taken place in the private sector, but understand that these are union contracts and a national precedent will need to take place before towns like Riverside have the negotiating leverage to request these type of changes in union contracts.

   As far as infrastructure improvements are concerned, you name it we need it. The TIF will provide capital to make these at a much faster pace within the TIF district and hopefully strengthen the sales tax and real estate tax revenue base of the village so that we have the financial wherewithall to make these improvements in the rest of the village as well. The 10% figure I have previously thrown out was a modest goal that I threw out for determining the success of the TIF. I think the hope is that it will generate more revenue. While a 10% or more increase in annual revenue for the village will certainly not be enough to fund all infrastructure improvements in one year, it will put the Village in a better position to address these improvements and preventative maintanence over an approrpiate period of time rather than stretching it to the limits as we are currently operating.

   Posted Tuesday Dec 19, 2006 11:56 #

5. corbi328
   Member

   A Home Rule referendum is the only referendum that would give the Village the authority to override the cap. If you think the TIF is a contentious topic, wait until someone suggests Home Rule. That is not happening in this town. Just to be clear, the Village could seek a referendum on a particular expenditure which, if approved, would enable the Village to exceed the cap, but only to pay for that expenditure.

   Posted Tuesday Dec 19, 2006 12:08 #

6. Catherine
   Member

   OK. Someone did express a preference for an aldermanic system of government. Why is another form of government so controversial? This one seems a little cliquish. Trustee Smith said he would agree to a referendum on TIF if he could get 100% turnout, but I doubt that many turned out for the last election. Lack of choice and lack of notice I suppose.

   I read that the reason for the tax cap is unbridled spending and taxing by local governments, that areas that trust their government usually do not employ tax caps, and that local governments love TIFs because they don't need voter approval to get and spend the money. I suppose this is why people are concerned with hidden costs.

   Posted Wednesday Dec 20, 2006 08:55 #

7. corbi328
   Member

   I am not sure why you interject "aldermanic system of government" within the context of Home Rule. Home Rule essentially is a transfer of decision making authority on some pretty far reaching subjects from Springfield to the local community. Our current Board of Trustees would continue to govern under Home Rule. They would have significantly more flexibility to deviate from state requirements on many things including real estate taxes (i.e. deviate from the tax cap), sales tax, fees and fines etc... If people are uncomfortable with entrusting this Board with management of a TIF, then I think those same people would be even more uncomfortable with the flexibility and discretion provided to the Board by making Riverside a Home Rule community. In my mind there is no chance of this happening in Riverside.

   Posted Wednesday Dec 20, 2006 11:14 #

8. Catherine
   Member

   Just because someone remarked to me that they might find aldermen preferable (more responsive, more interesting in gathering votes), and also that under other forms of government a petition of 10% of voters suffices to get a binding referendum on the ballot. Don't know if any of that is possible for us, or whether TIF can be put to binding in any case.

   Posted Wednesday Dec 20, 2006 17:51 #

9. TJS
   Member

   The TIF cannot be put to binding referendum. What we are doing is placing an Advisory Referendum on the ballot, asking the people of Riverside their opinion. The village board has no control of this initiative. If we gather the signatures, this will be on the ballot. It is our right to do so.

   Posted Thursday Dec 21, 2006 07:54 #

10. corbi328
    Member

    TJS, were you making a statement or were you trying to clarify something in the context of the discussion in this thread? Just to calrify, I am not disputing what you said.

    Posted Thursday Dec 21, 2006 09:02 #

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