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Friday, January 2, 2009 10:09 PM CST
OUR VIEW: 'Business-as-usual' prevails in tax levies



The real estate tax levies for 2008 are in, and it appears that business-as-usual logic prevailed rather than making any allowance for the economic times in which we live.

Many taxing bodies approved what sometimes are called “balloon” levies, in which the levy swells well beyond what a board expects to receive.

The balloon allows taxing bodies to receive every possible dollar should real estate assessments increase.

Occasionally, rising assessments in a taxing district have the effect of bringing a tax rate below its maximum, which spreads more modest increases in revenue across a larger base, and thus allows some property owners to save a few dollars. Balloon levies prevent this from happening, and use the larger base to further increase revenue.

We are not arguing here the merits of relying on real estate ownership as the vehicle to determine local taxes that are important parts of many budgets.

It is unfortunate, however, that most all local taxing districts seem to have the same attitude toward levies regardless of how the larger economy is treating the property owners who are paying the bill. That attitude is one of entitlement to every dollar that can be collected when tax bills go out in 2009.

To justify that attitude, leaders of taxing units point to increased costs for payroll, health insurance, programming demands, utilities and any number of other areas. They point out the number of people affected by their service, and the strong need for funding.

We would agree that local taxing bodies, by and large, provide valuable services that are worthy of our support.

We would suggest, however, that the current economic climate calls for an attitude adjustment away from considering tax revenue as an entitlement to pay the obligations for expenses. Not every good idea should be implemented and sometimes budget considerations demand reconsideration of existing expenses.

Now would be a great time to find ways to cut back. That means looking at ways to cut budgets, including not filling some positions, delaying implementation of some programs and/or scaling back others.

It makes sense that government leaders should recognize trends in the broader economy, and adjust spending appropriately. That attitude should come through when setting things like property tax levies.

We want to know that government leaders (and those who work in the public sector) recognize they are part of the larger economy.

— JG/T-C Editorial Board


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Tom Andres wrote on Jan 2, 2009 10:57 PM:

" Well, finally! A Dave Simpson-type editorial from the JG/T-C EB. (For those of you who don't remember Dave, he was an outspoken practical, conservative Editor employed all too briefly by Lee maybe 8 or 10 years ago.) What a great concept; when local payroll dollars are shrinking, cut back on the size of government!

I only wish the Editorial Board had gone further, with names of those who exploit taxing methodology and perhaps a few specific examples of potential cuts in government-provided services and delays in capital projects.

Maybe the Editorial Board could offer a Part Two, Part Three, etc, until these taxing bodies (and the taxpayers) get the message. "

Michael wrote on Jan 3, 2009 9:09 AM:

" A reasonable opinion as many of us believe that government should tighten its belt in tough times just like our families must do. Does this mean the editorial board is going to oppose the tax increase/expansion of the Mattoon Library Board? "

Mike P wrote on Jan 3, 2009 2:31 PM:

" The bulk of taxing bodies, have been broke or close to it, for quite some time. Those that had a surplus, ate through them like rats through a pantry wall. Which of any of them, fulfilled their expected responsibilities, to the utmost of their ability, or made any long term investments to directly improve their overall abilites to do so? Many of them are lacking clear priorities, or plans of action to correct their long existing failures. Much of public service in local government has become a completely done by the seat of their pants decision making process.

National economic issues aside, reality here has not been one of any sustainable growth, for years. They ignored their own back yard, and had their heads completely in the clouds in some other dream land. If they can't properly grasp what true conditions here are, they aren't likely to have any proper starting points, to base any plans on. If they aren't capable of properly evaluating things based on sound information, and understanding sound basic fundamentals, they are just scattering seeds at random, and hoping a pleasing garden, will spring up and shift reality to something else completely.

TIF is an available development tool. It has varying impacts on multiple taxing bodies, and if it were used sparingly and responsibly, it is capable of offsetting impacts, with its potential to inspire growth responsibly where it wouldn't probably happen completely on its own. Failing to properly understand TIF and responsibly applying it, is a failure that impacts most taxing bodies, and rests in many of their laps. These groups, should have gotten together, clearly outlined a TIF plan, and set some goals and limits, for its use.

TIF is going to be a 23 year bet. Districts can be renewed beyond that. Every use of it should be limited to set established responsible goals. Any development In TIF that would have happened outside or without it, is short changing the broad tax base. Any money kept from the pools, is going to be placed on everyone else to make up for.

We are overextended on TIF. Higher sales tax kickers, ammount to a shopping local toll. These two issues, will have great impacts on all taxpayers and taxing bodies one of them, can compound issues for at least two decades. We need some leadership, to responsibly shift priorities to a sustainable direction.

If we went back to a reasonable base city sales tax, we would likely find an increase in sales tax collections. Business would see increased opportunity for growth, and not only would local shopping be more utilized, but folks would come here to save 2 or 3 percent in taxes, on their shopping as well. Most cities are raising sales taxes, to raise money. An established lower tax shopping destination, can yield more return than one confined by progressively higher tax rates. Lower rates to more sales, is a win win. Once markets begin to grow, development follows, and increased opportunity for growth, follows. If a business can operate here, and end consumer costs are 2 to 3 percent lower, than other areas, they have an edge to expand and grow from.

We need an open honest look at TIF. We need facts and figures, and open looks at both sides of the tools use. Dropping the kicker taxes, needs to be considered, and shopping tolls, eliminated. A struggling mall, even with a multi million dollar face lift, won't see the growth potential it would, if there is a thank you for shopping here 1 or more percent surcharge toll. "

Harry Potter wrote on Jan 4, 2009 8:35 AM:

" The attitude of the taxing bodies in this are brings to mind the oft quoted "let them eat cake" comment from the queen preceding the downfall of the royal family in France.

I have another saying that seems appropriate for the times, "off with their heads" "

Mike P wrote on Jan 4, 2009 9:16 AM:

" Business as usual, took up several slots on their local goals for 2009 list.

I think they tried the same lame tactic last year, but then cheerleaded project after project, levy, bond, apropriation, and decision, 99 percent of the time.

Now that thay have non specificly chastized the wicked levy raisers, mum will be the word mostly, until post next Decembers levy increase, and they rinse and repeat. Same old business as usual. "

Locke wrote on Jan 4, 2009 4:38 PM:

" Lake Land College wants $1,000,000 a year to put in a $1,000,000 HVAC system in order to save $250,000 per year. You idiots do the math.

If you don't have the guts to do something about it, too bad. "

Country Boy wrote on Jan 4, 2009 8:34 PM:

" I agree with the points made in this article but most people who also agree would have to admit they are a little hypocritical if they are honest with themselves because everyone wants cuts except when it comes to their own little pet peeves. Some examples:

1. The Journal Gazette keeps talking about how they want the city to maintain Lake Paradise and they criticize efforts to sell the lake property. It costs money to keep up that lake-a lake most Mattoon residents don't use. You have to buy mowers and other equipment and pay empoloyees to keep it up. The J-G writes about the need to not implement every good idea, not fill some positions and delay or scale back projects yet a few short days ago they wrote their 2009 wish list and yet again said they want Paradise maintained. Could be the interest lies with the fact a J-G editor lives out there. Personal interests of newspaper staff get in the way of the desire to cut expenses where they are not necessary.

2. I know people who said they would not vote for any Mattoon city council incumbent because they decided to quit picking up leaves. I have heard those same people complain about rising taxes and the need for the city to cut back. You can't have it both ways.

You could go on and on. Everyone agrees with the need to trim the fat, especially in hard times but no one wants "their" fat trimmed.

Stop providing a luxury service like leaf pickup and people want to vote 'em out of office. Consider selling lake property instead of paying big bucks to maintain it and the paper complains. What other non-essential things could the city cut back? How about not another dime of tax payer money, ever, to the depot? How about not funding the senior center which only serves a small portion of the overall population? How about not paying into Coles Together anymore? How about getting rid of our firemen and going to an all volunteer fire department (don't laugh, many communitiies of comparable size have done it)? How about no more city financial support of the YMCA? The list could go on and on.

Everyone has some issue or project they are warm to whether it be leaf pickup, the depot or whatever. Everyone is ready to revolt if taxing bodies don't cut the fat and they are ready to revolt if they do (if the cutting comes at the expense of a service or project they want).

Memo to the city council, school board, library, Lake Land College and all the others. The heart of this column is dead on. Times are tough and you should be trimming every ounce of fat you can to ease the burden on the tax payers. But if you do, get ready to take criticism because the citizens want you to do it but they don't want you to do it. "

gringa wrote on Jan 4, 2009 11:31 PM:

" Sorry, Locke, your post doesn't make any sense. $1,000,000 a year to save $250,000 a year? Who is the idiot? LOL. Maybe YOU should do the math. "

Locke wrote on Jan 5, 2009 7:49 AM:

" Right Gringa, it doesn't make any sense, and that's why I am stunned due to the complete lack of public outcry from the local idiots.


No Gringa, I am not the idiot. Go back and read the article. LLC just levied $1,000,000 a year for their HVAC system upgrade. This upgrade will save LLC $250,000 a year. The savings will result in a savings of $5,250,000 over the next 25 years, plus generate an additional $24,000,000 over the next 25 years.

Net effect? Over $30,000,000 in taxes they do not need. I even offered multiple solutions that would have not envolved taxation.

Do a search for "Lake Land seeks 19 percent tax levy increase" and "Journal Gazette" and you'll find the article that states this.

Now stop trolling Peabody. "

The Flamer wrote on Jan 5, 2009 8:21 AM:

" Well said Country Boy. Great post. "

Mike P wrote on Jan 5, 2009 8:46 AM:

" We are past the point with some of these groups, where its even a matter of one decision here and there, or poor performance because of issues or factors out of their contol. Each of several of them, are completely irresponsible, and while they are raising levies, and saying how tight things are and will be for them, they are creating new responsibilities and debts.

Several of them, are beyond fat trimming their ways out of the issues their decisions created. They still manage to muster the courage to be incapable and insolvent, but feel raises are due.

Cuts would be largely understood, if it were a genuine solution to resolving any of the broad issues. When cuts to the majority responsibilities are made, and as much money or more is wasted in other and new directions, most people can put two and two together, and see where priorities are, and more importantly, where they aren't.

The city already has the equipment, until they sell it off, like they have with some large ticket items post burning ban, repeatedly. There were tub grinders, leaf vacs and trucks and equipment, and lots of other expensive toys bought at a premium, sold off, and not properly utilized, for the investment made in them.

They have mowers. They spent 60+k on enclosing the shooting range, it went to one bid that was more than 2x estimated. Just up the road, they have been progressively blighting public property preparing it to get sold off. Since they got those pesky geese out of there, it's been a green light for intentionally gradually deteriorating it and ultimately selling it off.

The lake is one issue, streets, sidewalks, parks, water, two school boards, Unit 2 and LLC many lingering issues, are just a few of the others. Each taxing body is led by a handfull of people. None of them, seem to be capable of effectively and responsibly doing their jobs, in representing taxpayers properly. Their business as usual, is compounding issues and tax levies annually. Issues are being ignored, scrimped on, or postponed, at the same time agendas are being followed through with, no matter the cost or consequences.

The we know, citizens don't, attitude, goes back to the new schools. It has become increasingly more prevalent since that point. Part of government is making tough and sometimes unpopular decisions. The definition of what and at what cost to whom, is where it goes from effective responsible decision making, to just personal agenda pushing.

Many of these tax bodies, are flat broke. They continue on their plotted courses, sacrificing services to the majority of people, and offset cuts by more debt creation, and speculative investments and decisions. Most of them, can't perform their basic responsibilities adequately, but are looking to add new ones hand over fist.

Until some responsible, civicly minded independent minds, find positions of leadership, in these tax bodies, it is a downward spiral, that will persist. Any one of them currently holding a role, could give pause to some of these agendas, and go in a more responsible mode of rule. They could have done it last year, or the year before. They chose to stay their courses, and ignore reality.

When local reality is presented by an outside source, they are baffled, make some excuses, and go on with their set agendas unaltered.

Citizens aren't as petty as to let one issue here and there, decide the fate of local leaders. If the issue is complete and utter failure, it is a strong enough one to direct some scrutiny, to figuring out how best to resolve it, since those entrusted with it seem incapable of anything but their business as usual frame of minds. "

gringa wrote on Jan 5, 2009 9:20 AM:

" First, I don't get the *Peabody* reference, but I will give you credit for making a good point about the taxing ruse that's going on at LLC and within EVERY taxing entity all across our nation.

I suppose one of these days, hopefully in my lifetime, we'll have a huge taxpayer revolt. If you add them all together, taxes easily consume far in excess of half of our individual gross income in this country. The cost of government and all the tentacles of it, such as LLC, is spiraling out of control. "

knowitall wrote on Jan 5, 2009 9:23 AM:

" I have noticed a large increase in Female suicide bombers in Iraq. Will they get 27 male virgins? Equal rights! "

Rob Stroud wrote on Jan 5, 2009 9:47 AM:

" I am going to be working on stories in the coming days and beyond about the prospects of the city of Charleston seeking home rule status. As part of this, I would like to get the perspectives of Charleston residents pro, con or anywhere in between regarding home rule. If you would like to speak with me on the record for these stories or know someone who would, I can be contacted at rstroud@jg-tc.com or 348-5734. "

attainedage wrote on Jan 5, 2009 12:02 PM:

" Anyone else notice?

Is it just my imagination, or are the posts to this website taking longer than ever to appear on these pages?

On the weekends, if you are expecting to see activity here, you can pretty much forget it. Even Monday through Friday, it seems these strings are updated only two or maybe three times a day.

What gives? Is the JG/T-C now discouraging on-line participation in current events? Has Lee decided to reallocate the monitor's time to other tasks? Should we petition to get Harry unretired? "

Rotty wrote on Jan 5, 2009 6:00 PM:

" attainedage, that's the way it's always been, since practically day one.
It's just got worse of late, especially on the weekends.
I wish they'd hook up here, where several other newspapers/forums have;
http://tinyurl.com/5ktcgx "

Mike P wrote on Jan 5, 2009 10:36 PM:

" Home Rule is probably one of the most important issues, balloted in some time. I don't know the ins and outs of citing information on line, for publication, but it might be a place to look for covering the against angle.

I believe Rockford had it, and went throught the much harder process of getting it ended. Search Illinois home rule taxpayers, and many of the issues that fail to make the this will be great for everyone proponent presentations, can be sought for expansion, if nothing else. Issues found, could be asked of the supporters, for comment. Its important to hear both sides, but often in issues like this, experts for it, flood coverage with the good news, intentionally ignoring the down sides.

It took nearly three years, after it got started, for it to partly come out in the open, that if TIF doesn't do well enough, to cover promised responsibilities taxpayers make up any short falls. All on top of already covering the gaps, holding back tax dollars being sequestered, in covering expanded demand and costs to services places on the non TIF tax bases.

Home rule has a more dire opportunity to do completely diabolical costs to taxpayers. It expands opportunity to tax, fee, raise sales taxes, and even sieze property. Information of its various opportunity and history of misuse is out there for consumption. As was evidently TIF, before it came to Mattoon. Both have the possibility to be responsibly used, but aren't set up so its a requirement. If leaders were of the put the people first nature, both could be tools for responsible development.

Note who proposed and supports this being passes, and look at their records of public service, to evaluate their possible motives for it. "

INVICTA wrote on Jan 6, 2009 10:19 AM:

" Country Boy wrote....
The Journal Gazette keeps talking about how they want the city to maintain Lake Paradise and they criticize efforts to sell the lake property. It costs money to keep up that lake-a lake most Mattoon residents don't use. You have to buy mowers and other equipment and pay empoloyees to keep it up.

Residents can't use a lake if it is overgrown with weeds. Tractors would not have to be bought if the city hadn't sold them. They were all used ones from the park Department for the most part anyway. More people used the lake than will use that money pit of a train Depot and the lake has a history that goes back twice as far. Lake Paradise would bring in twice the people to spend money in Mattoon if half the money spent on the Depot had been used there. The thing that galls you Country boy is that Lake Paradise doesn't put money directly in the pockets of the Downtown crowd. "

Harry Potter wrote on Jan 6, 2009 2:01 PM:

" You hit the nail on the head, INVICTA. The only reason for the Depot renewal is that it's located right in the middle of downtown. Downtowns in small town USA are basically dead for commerce, but for some reason most little towns look for a magic bullet that they think will revive their dying centers, and they think this is it. It's not. "

 


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