Tax Levy Hearing, December 28, 2009

[Terri]

The gruesome reality of a 15% tax increase to homeowners.  
###
City of Berwyn 2010 Budget Highlights presented by Brian Pabst

The City received a two million dollar line of credit and reduced expenditures one million dollars. A three million dollar budget gap remains.  As of May, 2009 the city was eight million dollars in the hole and health insurance is going up dramatically. Brian Pabst told us the unions are great team players and is optimistic but could not comment further due to negotiations. After a 5% tax increase the city will remain 2.3 million dollars in the hole.  
Brian Pabst said city officals presented Standard and Poor's with a "dog and pony show" (his words) so the city was able to keep its A- bond rating.  
Berwyn spends 50 to 60 million dollars per year yet has a debt of 80 million. Approximately 4 million of that is interest per year.  

Alderman Chapman commented that the city has been overspending for twenty years.  

This is the taxes on a $225,000 home:
5% = 67.00 per year
10%= 134.00 per year
15%= 201 00 per year
20%= 268.00 per year
25%= 335.00 per year

[Terri]

Now my comments. First we were told by the Mayor and Alderman via a public notice a 5% tax levy was needed yet at the special council meeting they increase the 5% to 15%. Where was the honesty? Why not be upfront about the deficit and tell the taxpayers a 15% tax levy was needed?  
Second, Brian Pabst said health insurance is going up dramatically. Really Brian, whose health insurance isn't going up?  It is unreasonable and unfair to place this burden on the taxpayers and then ask for a 15% increase in our taxes. Alderman Weiner appealed council for four years to have the city employees pay their share of health insurance, he was ignored.  
And thirdly, Alderman Chapman enlightened us and said the city had overspent for at least twenty years.  Twenty years?  Alderman Chapman, Alderman Skyrd, Mayor Lovero why didn't you stop the bleeding, you were elected officials a portion of the those twenty years. Who was looking out for the taxpayers?  Increase taxes, don't worry it's the same as taking your family to McDonald's.  

[Ted]

  Here are my notes from the meeting. Just a note of caution, a lot of the numbers here were from a presentation assuming a 5% increase, not a 15% increase.


PRESENTATION:

Brian Pabst gave a presentation which gave the following information:

For the 5% proposal, the following amounts would have been levied before "abatement":

Debt - $8.8 million
Pension - $3.9 million
Library - $2.4 million
City - $9.4 million
Total - $24.77 million

After abatement with a 5% increase:

Debt - $4.7 million
Pension - $3.9 million
Library - $2.4 million
City - $9.4 million
Total - $20.6 million

No numbers were presented to the public about what the numbers above would be for a 15% increase.

Last year's levy was $19.7 million ($15 million for non-debt and $4.7 million for debt). Nona Chapman's motion was for a total levy of $26 million, which she claimed was a 15% increase.

It was stated that the city's total debt is $80 million dollars. It was stated that the length of one bond had been extended to 19 years.

Brian Pabst stated that the city would lose its bond rating and be downgraded to a BBB rating if next year's budget was not a balanced budget.

It was stated that the expected budget deficit next year before the 15% tax increase was expected to be $3.3 million dollars.  It was claimed that the $26 million dollar levy would bring in an additional $2.9 million dollars of revenue, thus reducing the deficit from $3.3 million to $345K. It was stated that a 15% tax increase would result in $206 additional dollars of property taxes on a house with a market value of $225,000. It was alleged that Forest View raised their property taxes by 40% this year and that Oak Park and other surrounding suburbs have also raised their taxes.

 It was also stated that there would not be large increases from other taxing bodies because of the tax caps, which limit tax increases to the cost of living, which Pabst stated was 0.1% last year.

 A question was asked about the library tax. It was stated that the city of Berwyn was the taxing body for the library but that the library had a separate levy.


PUBLIC FORUM:

 In the public forum part of the meeting, the following comments were made:

 There were several public comments asking why there were no cost cutting measures such as layoffs, position eliminations, furloughs or cuts in benefits.  The basic response from the Mayor was that the elected officials could not discuss anything because the city is in contract negotiations with the unions.

Brian Dillon stated that any tax increase should be accompanied by city employees giving something back, such as furloughs or paying for part of their health benefits. Brian also pointed out that the 5% increase would still leave a deficit of over $2 million and asked how the city planned to cover that $2 million dollar gap. Lovero responded that Pabst would talk about that later but that never happened. There was no discussion or presentation by Pabst about how the city would cover the $2 million dollar deficit if a 5% increase was approved.

 Mark Weiner stated that employees and elected officials should start by paying for their own health benefits. Weiner asked about whether the spreadsheet for the revenues and expenses would be put online. City Clerk Tom Pavlik responded that he could not put the spreadsheet online yet because it was part of the minutes of the last COW meeting. Mark Weiner ended by pointing out that Lovero was the person who made the motion to approve the 2009 budget and that it was Michelle Skryd who seconded the motion.

 Regina Mendicina stated that the monthly amount of the tax increase was less than the cost of "one Quarter Pounder with Cheese and a medium Coke".  A new resident who recently purchased a home in Berwyn responded to her McDonalds comparison saying that the tax increase was the cost of putting food on his table.  Mendicina also ranted against Michael O'Connor, blaming him for everything.  Lovero responded that one administration could not be blamed and Nona Chapman stated during the city council portion of the meeting that this had been going on for 20 years.

 Kate Walzcak echoed other comments saying that any tax increase had to be accompanied by cost cutting measures such as furloughs and that she was unwilling to pay increased taxes without those measures in place. She said everything that could be done has not been done.

 Cook County Commisioner Tony Peraica spoke and asked the city to re-consider the tax increase. He referred to the Lapler curve and alleged that an increase in taxes would result in a decrease in revenue. He pointed out how this tax increase would be on top of all the other tax increases that were going on, callng it "death of 1,000 paper cuts".  He also stated that 85% of taxes go toward payroll, benefits and pensions, which he stated must be addressed in a constructive manner.

 Steve Shonder spoke out against the recently purchased salt shed not going out to bid. He said there was "tension between residents and the government" and claimed that the response from the city clerk to his request to speak was "intimidating". Lovero responded that the salt shed was out of capital budget and that that money could not be used to alleviate the general deficit. City Clerk Tom Pavlik responded that he sent the same response to everyone who requested to speak. Lovero stated that the budget hearings was something that the city does every year and is not something new.

 Ed Rios stated that the city was in a vicious cycle and that things would never be like they used to be. Rios also pointed out that the operational levies (city corporate and library) were just 50% of the total levy and that the other 50% of the levy was for pensions and debt.

 Mario Manfrendini, a Berwyn police man, stated that he has seen a lot of people come and go over the years he has lived in Berwyn and that the city was in a terrible crisis and that people should come together. Manfrendini stated he supported raising taxes.

 Eileen Pech stated she was a 46 year resident and that times were hard. She said that the city has always avoided raising taxes for too many years and that she does not see any other solution to the problem except to raise taxes.

The last public comment was by Tony Bartucci, who said he recently bought a home in Berwyn and that his tax bill will equal his house note. He also responded to Regina's comments about Quarter Pounders by stating that the money he could save in not paying additional taxes was needed to put food on the table.


CITY COUNCIL MEETING:
 
 When the agenda item for the tax levy increase came up, 1st Ward Nona Chapman made a motion to levy $26 million dollars in property taxes, which she claimed was a 15% increase.  Chapman stated that the city had been over spending for 20 years and that the increase would not have been as large this year if the city had increased taxes by 1% to 2% in previous years.  3rd Ward alderman Marge Paul voted against the 15% increase motion, saying the amount was too large. 4th Ward Alderman Michelle Skryd stated that she supported increasing taxes and would be against cutting city services. 6th Ward Alderman Teddy Polashek stated that he would not support the layoffs of any city employees.

The final vote was 7 AYEs and 1 NAY. 3rd Ward Alderman Marge Paul voted NAY.

[n01_important]

You guys have to hand it to them... asking for a 5% then ram rodding a 15% increase at the last minute was a stroke of genius.

Look, I also understand the issues our city if facing and like many of you... I would accept an increase if the pain was equally shared.  But it isn't.  Taxpayers are bearing the brunt of the pain.

Or like many other stated... raise taxes BUT make this a better place to live.  Better schools, etc..  but to raise taxes and not get anything in return?! 

If our votes don't count... then let's vote with our money and choice of residence.  Move out of Berwyn.  I'm thinking of doing the same.

[watcher]

You guys have to hand it to them... asking for a 5% then ram rodding a 15% increase at the last minute was a stroke of genius.

I think the statute requires public notice and the hearing when the levy increase exceeds 5% and the language of the notice is boilerplate.

It has to be published as written regardless of how much over 5% the actual amount is.

[The Jackal]

Now my comments. First we were told by the Mayor and Alderman via a public notice a 5% tax levy was needed yet at the special council meeting they increase the 5% to 15%. Where was the honesty? Why not be upfront about the deficit and tell the taxpayers a 15% tax levy was needed?  

You expected honesty and transparency from THIS motley crew? LOL!!!!!!!!!!!!!!

Second, Brian Pabst

The muppet?

said health insurance is going up dramatically. Really Brian, whose health insurance isn't going up?  It is unreasonable and unfair to place this burden on the taxpayers and then ask for a 15% increase in our taxes.

Now you're making WAY too much sense...

And thirdly, Alderman Chapman enlightened us and said the city had overspent for at least twenty years.  Twenty years?  Alderman Chapman, Alderman Skyrd, Mayor Lovero why didn't you stop the bleeding, you were elected officials a portion of the those twenty years. Who was looking out for the taxpayers?

Twenty years? Hasn't Ms. Chapman been a member of City Council for the last NINE of those TWENTY years?

What has she done in those last nine last years to address the problem?

And if overspending is the problem, then it would make sense to cut off the free loaders who treat city coffers like their personal piggy bank instead of first shoving it up the rear of the taxpayers/residents, wouldn't it?

[The Jackal]

There were several public comments asking why there were no cost cutting measures such as layoffs, position eliminations, furloughs or cuts in benefits.  The basic response from the Mayor was that the elected officials could not discuss anything because the city is in contract negotiations with the unions.

I LOVE it!!! CLASSIC!

I'll stick it up your ass three times further and THEN tell you what the unions and I are chitchatting about.....

Just have to first make sure I've shoved it all the way in ...... the Berwyn way!

Brian Dillon stated that any tax increase should be accompanied by city employees giving something back, such as furloughs or paying for part of their health benefits.

Wrong.

FIRST trim the fat from teh city unions and city council, THEN hit the taxpayer. Not vice versa, or even concurrently.

Brian also pointed out that the 5% increase would still leave a deficit of over $2 million and asked how the city planned to cover that $2 million dollar gap. Lovero responded that Pabst would talk about that later but that never happened.

And we'll be here next year and Mr. Dillon will STILL be waiting for an answer...

Mark Weiner ended by pointing out that Lovero was the person who made the motion to approve the 2009 budget and that it was Michelle Skryd who seconded the motion.

Come on now, are we really going to quibble about such MINOR details?

Regina Mendicina stated that the monthly amount of the tax increase was less than the cost of "one Quarter Pounder with Cheese and a medium Coke".

Berwyn math for you....LOL!!!

Cook County Commisioner Tony Peraica spoke and asked the city to re-consider the tax increase. He referred to the Lapler curve and alleged that an increase in taxes would result in a decrease in revenue. He pointed out how this tax increase would be on top of all the other tax increases that were going on, callng it "death of 1,000 paper cuts".  He also stated that 85% of taxes go toward payroll, benefits and pensions, which he stated must be addressed in a constructive manner.

Not in Berwyn, Tony.

How else are they going to afford housing in Plainfield?

Mario Manfrendini, a Berwyn police man, stated that he has seen a lot of people come and go over the years he has lived in Berwyn and that the city was in a terrible crisis and that people should come together. Manfrendini stated he supported raising taxes.

I believe Mr. Manfredini is a firefighter, but I may be mistaken. Did he address furloughs and benefit cuts?

Eileen Pech stated she was a 46 year resident and that times were hard. She said that the city has always avoided raising taxes for too many years and that she does not see any other solution to the problem except to raise taxes.

Forty six years? Wow. That's a long time of getting it shoved up your keister ..... and not learning a thing from it.

The last public comment was by Tony Bartucci, who said he recently bought a home in Berwyn and that his tax bill will equal his house note. He also responded to Regina's comments about Quarter Pounders by stating that the money he could save in not paying additional taxes was needed to put food on the table.

Don't worry Tony, that meal is being put on a table somewhere in Plainfield, Naperville, Darien, etc...

[OakParkSpartan]

I said several times that council needed to be fiscally responsible and make difficult decisions.  The tax increase needed to be a PART of a solution.  Unfortunately, our band of merry halfwits voted away any bargaining power with the unions.

My prediction is that we will see a little over $500k of "givebacks" from the union, followed up a year or two later by pay increases that are either retroactive or large enough to negate any impact to the employees.

Oh, BTW, do you all know that the CROSSING GUARDS are reportedly trying to unionize?  I sure as shit hope the Mayor does not feel the need to provide the same benefits to crossing guards that he gives to the police/fire unions.

Folks also need to understand if these halfwits screw up the budget by continuing to spend money like a pedophile in Bangkok, our credit rating will go in the toilet and we will be unable to borrow our way to prosperity.

Oh, I didn't hear anyone mention anything about a more than $1 million loan guarantee for a certain BDC Board member/defunct auto dealer.  That will be a nasty surprise.

Anyone know how much we've paid out in Workman's comp or frivolous lawsuits over the past 4 years?  That will be an interesting research project (I like research).

[moxnix]

If our votes don't count... then let's vote with our money and choice of residence.  Move out of Berwyn.  I'm thinking of doing the same.

It's not that our votes don't count, it is that there is too much apathy with the voters in Berwyn.  Look at the last election.  2000 less people showed up to vote than did in the election 4 years prior.  Why?  Some didn't think their vote counted, others didn't have a reason to vote.

I personally am not going to sit back and wait for the market to recover so that I can sell my home and move elsewhere.  I am going to continue to fight the good fight.  I bought my house because I love the neighborhood, I love the house, I love the proximity to Chicago.  My plan is to retire from this house.  This is my home damn it - and I am not going to let them run me out of it. 

So, people, make a decision!  Are you going to sit back and take it?  Or you are going to talk to as many people as you can about it - neighbors, friends, the person sitting across the pew from you in church - and create the change you want to see?

[buzz]

 Regina Mendicina stated that the monthly amount of the tax increase was less than the cost of "one Quarter Pounder with Cheese and a medium Coke".

Or, 1/3 of a Martini at OOT.

[Thor]

 Regina Mendicina stated that the monthly amount of the tax increase was less than the cost of "one Quarter Pounder with Cheese and a medium Coke".

Or, 1/3 of a Martini at OOT.

Really, how Marie Antionette can you get.
If the people of Berwyn don't like the 15% increase then "qu'ils boisson de la martinis"

[watcher]

 Regina Mendicina stated that the monthly amount of the tax increase was less than the cost of "one Quarter Pounder with Cheese and a medium Coke".

Or, 1/3 of a Martini at OOT.

Every hour for a week.

[Diona]

Sounds like I will be moving out of Berwyn sooner rather than later.  I so don't want to get caught in a situation where my landlord has to sell cause he can't afford the taxes.

So bye bye Berwyn for me & my husband, I don't feel like going down with the sinking ship.

Too many businesses are closing up that Cermak Road is beginning to look like a ghost town it's sad.

[OakParkSpartan]

 Regina Mendicina stated that the monthly amount of the tax increase was less than the cost of "one Quarter Pounder with Cheese and a medium Coke".

Or, 1/3 of a Martini at OOT.

Really, how Marie Antionette can you get.
If the people of Berwyn don't like the 15% increase then "qu'ils boisson de la martinis"

Actually, Reg was discussing the 5% increase, not the 15.

[OakParkSpartan]

Sounds like I will be moving out of Berwyn sooner rather than later.  I so don't want to get caught in a situation where my landlord has to sell cause he can't afford the taxes.

So bye bye Berwyn for me & my husband, I don't feel like going down with the sinking ship.

Too many businesses are closing up that Cermak Road is beginning to look like a ghost town it's sad.

The reality is that the increase won't be that large, probably less than $300 a year (Mike Phelan, what do you think the increase will look like for non-owner occupied 2's and 3's?). 

I'd hope that you stick around.  You care enough to participate here, give an hour per month and attend a city council meeting. 

[Bonster]

 Regina Mendicina stated that the monthly amount of the tax increase was less than the cost of "one Quarter Pounder with Cheese and a medium Coke".

Or, 1/3 of a Martini at OOT.

Every hour for a week.

One less porn site per month.

[Thor]

Sounds like I will be moving out of Berwyn sooner rather than later.  I so don't want to get caught in a situation where my landlord has to sell cause he can't afford the taxes.

So bye bye Berwyn for me & my husband, I don't feel like going down with the sinking ship.

Too many businesses are closing up that Cermak Road is beginning to look like a ghost town it's sad.

The reality is that the increase won't be that large, probably less than $300 a year (Mike Phelan, what do you think the increase will look like for non-owner occupied 2's and 3's?). 

I'd hope that you stick around.  You care enough to participate here, give an hour per month and attend a city council meeting. 

Thats $25 more a month not counting the Township increase and Dist201 increase? I know of 3 families in Berwyn where the main bread winners have lost they're jobs and are barely making it. $300+ a year means more to some than others. Its easy for us employed to minimize it by saying its only a burger and drink or a porn site but to others its heating the house and feeding the kids.
Maybe thats the goal, let run out the blue collar folks and then all the white collars folks can move in.

[Bonster]

If $300/year (~$25/mo) is the difference between owning or renting you probably shouldn't be owning. 

[watcher]

If $300/year (~$25/mo) is the difference between owning or renting you probably shouldn't be owning. 

$300/year accumulates and compounds. When expenses are going up double digits and you're being told things are tough so no raises.
Oh yeah, and you have to pay more for HC and we're cutting payroll so your work load will increase three fold, but we're holding the line on overtime...

Or put another way, gain 5% more weight every year. How long before you don't fit through the door?

Everything we see has just passed "costs" along. It really sucks to be the last link in that daisy chain.

[Thor]

I heard a story today on NPR about airports losing money on their parking lots.
Here is the scenario.
The airlines raise fees, baggage, food, 1st class and so on.
The passengers in order to keep up cut back on parking at the airport.
The airports in order to make up a short fall charge the airlines more.
And so who do you think the airlines pass the increase to??
The daisy chain effect strikes again!