City Triples Home Rule Sales Tax

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Monday, May 12. 2008

City Triples Home Rule Sales Tax

Senator Fawghourne

This interview took place at one of the tables outside the Happy House Hot Dogs, one of Senator Fawghourne's favorite eateries. You see, fancy French pastries and exotic foods can be found all over the world, but a true Chicago style hot dog can only be had in northeast Illinois. People elsewhere people desecrate wieners with ketchup and relishes that come in various shades of olive drab. The Senator is a purist... polish with everything (mustard. onions, relish, celery salt, slice of tomato, and a quarter deli pickel. The senator pushed his fries off to the side and unfolded a sheet of paper in front of him on the table.

Sen. Fawghourne:Well, did you notice the rise in the cost of your hot dog?
WegoWebNope... the menu still lists the same prices.
Sen. Fawghourne:Aaaaaahhhhh... but did you notice the increase in the sales tax?
WegoWebYou must be mistaken. Our city council is Republican ... No Taxation without Representation ... Make government small enough you can drown it in the bathtub ... No New Taxes Pledge. There was concern when the city got "home rule" that it would be used to raise taxes, but they promised never to do so. You must be thinking the 1/4% that the county increased the sales tax.
Sen. Fawghourne:Au Contraire! In this article titled "West Chicago: Tax increase may pay for new water meters" in the Chicago Trib on April 9th it says, "The City Council last month approved the half-percentage-point sales tax increase that takes effect Oct. 1 and provides an additional $600,000 in annual revenue."

And here, read this section of City Council Minutes.

CITY COUNCIL MINUTES Regular Meeting March 17, 2008:

"E. Ordinance 08-O-0019 – An Ordinance Amending Chapter 16, Article II of the Code of Ordinances of the City of West Chicago to Increase the Home Rule Municipal Retailers’ Occupation Tax and the Home Rule Municipal Service Occupation Tax.
Alderman Fuesting made a motion, seconded by Alderman Pineda, to adopt those items on the consent agenda. Voting Yea: Aldermen Chassee, Beifuss, Monroe, Radkiewicz, Pineda, Dimas, Murphy, Bunch, Gianforte, Connelly, Stout, Dzierzanowski, and Fuesting. Voting Nay: 0. Motion carried."

WegoWebThat's clear like the freshly fallen sludge. It doesn't even use the word "sales". Was it written by little green people on the mother ship? I do gather, however, that every member of the city council voted in favor of a sales tax increase of 1/2 cent.
Sen. Fawghourne:Yep, and it is worse than that. According to the Illinois Dept of Revenue
communication titled, 2008 FY-2008-06 Sales Tax Rate Change for West Chicago, "West Chicago’s sales tax rate has changed. Effective January 1, 2008, you will no longer have to collect the DuPage Water Commission Tax of 0.25%. Effective January, 1, 2008, a home rule tax of 0.25% has been imposed."		New water plant may help lower sales tax
Harry Hitzeman
Daily Herald - March 12, 2005,

"Two months ago, West Chicago celebrated the opening of its new water treatment plant. Now, the plant may lead to a decrease in sales tax for shoppers in the city."

WegoWeb"Let me get this straight. The county used to get 1/4 cent for water. We were all told it was a giant win when that was removed, but it has been replaced by the 1/4 cent for the city.
Sen. Fawghourne:

Yes, we got a cut for a while... then the city replaced it. Now the state has added 1/2 cent, of which 1/4 cent will go to the county for mass transit..It was done by the state legislature so county officials can blame the state.
WegoWebOK, so the state lowered their part for us and then raised their part for everyone and is giving part of their part to the county for mass transit. But you don't sound finished.West Chicago: Tax increase may pay for new water meters
Chicago Tribune April 9, 2008

"The City Council last month approved the half-percentage-point sales tax increase that takes effect Oct. 1 and provides an additional $600,000 in annual revenue. The tax comes on the heels of a new half-percentage-point Regional Transportation Authority sales tax on DuPage, Kane, Lake, McHenry and Will Counties that on April 1 raised West Chicago's sales tax rate to 7.25 percent."

Sen. Fawghourne:After joy of cutting the 1/4 cent for water, the city council replaced it with 1/4 cent for infrastructure, and then they added another 1/2 cent for water meters.
WegoWeb:So concentrating on the West Chicago part, prior to January of 08, the city had nothing. Then they made it 1/4 cent... and in March TRIPLED that to 3/4 percent effective July 1st. How much money are we talking about?
Sen. Fawghourne:Don Early, City Treasurer, estimated the final 1/2 percent would be well over half a million dollars per year. It will be initially dedicated to an upgrade of the water meters with some new fangled, high tech, computer and radio based, automatic water metering system that is based upon designs stolen from little green aliens who landed at Roswell. What we are talking about is nearly one million dollars per year in additional income for the city. Minutes Finance CommitteeMarch 11, 2008

Alderman Pineda moved and Alderman Gianforte seconded a motion to recommend to adopt Ordinance No. 08-0-0019. Treasurer Earley indicated several other towns were talking about increasing their home rule sales tax rates to balance the upcoming years' budgets, including Naperville, Wheaton, and Warrenville. He also noted that the City, with the increase, would remain very competitive with its municipal competition. In response to a question from Alderman Pineda, the City Administrator indicted that staff would be seeking proposals for a Fixed network system. Treasurer Earley indicated that while more expensive, the difference would be recovered very early over the 20-year useful life of the water meters.

Voting Yea: Aldermen Pineda, Gianforte, Dimas, Chassee and Fuesting. Voting Nay: 0. MIotion carried.

WegoWebOK, give me the executive summary.
Sen. Fawghourne:
  • 2005 and 06 - West Chicago fought to remove 1/4% sales tax that went to DuPage County.
  • Jan 2008 - drop of 1/4 % for water
    1/4 % added for the city
  • April 2008 - State sales tax increases 1/2 % including 1/4 % for County mass transit
  • July 1, 2008 - West Chicago adds 1/2 % for water system
WegoWebThen on July 1st, the sales tax rate will be 7.75%, a full 1% higher than a year ago.
Sen. Fawghourne:Yes, but that is not all bad. As Don Early stated, the money will go for infrastructure improvements. The first 1/4 % is dedicated to infrastructure projects. The later 1/2% is for the water meters and then further infrastructure improvements.
WegoWebYes, taxes are how we pool our money to do good things for people... streets, sidewalks, sewer lines... if spent wisely, taxes are a good thing. Infrastructure is an investment... it is us spending money for the benefit of our kids, unlike the jerks in DC who are spending our children's money.
Sen. Fawghourne:Yes, we all have to pay a little so larger things can be done. The city's take from property taxes will be down 3% meaning that they are being frugal. The new meters will save money in wages for meter readers. They are talking major savings by privatizing the water plant, but that will end up costing the workers there... more than likely, their benefits and retirements.
WegoWebSo why aren't I seeing the city council applauding themselves. There is nothing in the city newsletter. There has been no press release passed out. There is nothing on the city website. It's like its blacked out. I "kinda" mentioned it when I puffed the CableCast broadcast of Tres. Don Early's comments, but there is nothing official anywhere.Heads Up of Exclusive Coverage(WegoWeb April 3, 2008)

"Tomorrow, Friday April 4th, Channel 17 at 6PM is your best chance to see Treasurer, Don Earley, explain recent changes in West Chicago's taxes. Although this includes a 3% cut in property taxes, it includes increases in the Home Rule sales tax. Although passed on March 17th, these tax changes have not been covered in any local papers and the City Newsletter is not due until May."

Sen. Fawghourne:Don't be silly. It is a 200% increase after a few short months of the tax even existing. I don't know how many have signed a "No New Taxes" pledge, but none of them want to run in this area with the blotch of a new tax on their record.
WegoWebGuilty of a brand new tax which broke their promise about Home Rule... and then quickly TRIPPLE it. That doesn't sound good.
Sen. Fawghourne:I can understand them not wanting to talk much about it. However, it should be laid out with the exact provisions, with explanations of why it was passed, with specificity in what the funds will be used for, it should be done officially. The City is working on openness and informing the residents. They should have, and still could, issue a press release. They've had two months to write an article to include in the most recent issue of the City Newsletter. Exact information should be on the website. They should putting out the word on the good things to be done with the money. I suspect that, embarrassed by having raised taxes, they don't want this to see the light of day. If I hear rumors that anybody in government took any action to suppress proliferation of information, I will be sorely aggravated. Any action, overt or covert... even so much as a conversation that concluded that information would be best not distributed would be aggregious.
WegoWebWhoh, Big Pony! Don't jump over THAT cliff. Do you have any proof that any information was suppressed?
Sen. Fawghourne:I'm an imaginary friend. Would you like some imaginary proof.
WegoWebNo, I want to eat my dog.
Sen. Fawghourne:Good idea. Have you ever noticed this relish is the same color as the little green aliens?
Posted by RL in Senator Fawghourne at 21:40 | Comments (0) | Trackbacks (0)

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