Morton Business District—my response to a news article
I had planned to begin another series on video gambling tonight. I’m changing that with a response to an article in the Peoria Journal Star on February 16, 2010, page B2. I’m posting most, but not all, of the story and then my comment which is in the form of a letter to the editor which I plan to mail to the paper today.
“Daly argues for Morton sales tax increase
But people at public hearing speak against it, drawing applause
By Steve Stein
OF THE JOURNAL STAR
Morton—On a night when Mayor Norm Durflinger unveiled a lengthy list of revenue-producing possibilities for the village, a sales tax increase for a proposed business district grabbed the spotlight.
The 0.25 percentage point increase—from 6.75 to 7 percent—is part of the village’s proposal to establish the expansive district. The estimated $400,000 generated annually by the increase would be used exclusively for business infrastructure and streetscape improvements within the district.
Several audience members spoke against the sales tax increase at the first of two public hearings for the district that will be held by the Village Board. The next hearing will be March 1, with board action scheduled for March 15.
Each comment in opposition to the increase and the use of the money was received with applause from the audience.
‘This is frivolous spending when people are hurting,’ said resident Patte Winn.
‘How can this be a major priority when you’re talking about laying off three police officers and the assistant police chief?’ asked resident Don Vance, referencing village budget-cutting suggestions made recently by village employees and department heads.
Other speakers expressed a concern about the cumulative effect of possible federal, state and local tax increases, and suggested lowering the sales tax by 0.25 percent and vigorously advertising the fact.
(Here’s the matter I’m commenting on—my addition.)
Jennifer Daly, executive director of the Morton Economic Development Council, which proposed the business district and sales tax increase, said after the meeting that she understands residents’ concerns.
She said the council could have proposed the maximum increase of 1 percentage point but kept it at 0.25 percentage points because of the economic climate.
The additional tax would add 25 cents to a $100 purchase. Automobiles, groceries and medications would be among the exempt items.
‘Nobody likes proposing a sales tax increase but this is the best way to achieve one of the major goals of the village’s comprehensive plan,’ Daly said.
‘Even if the village’s sales tax increases to 7 percent, we’d still be 1 to 3 percent lower than area communities,’ she added. ‘And not only Morton residents would be paying the extra sales tax. Everyone who buys something in Morton would pay it.’”
My letter to the editor:
After reading the article titled “Daly argues for Morton sales tax increase,” I believe some clarification is necessary.
She is quoted as saying “…the council could have proposed the maximum increase of 1 percentage point but kept it at 0.25 percentage points because of the economic climate.” What she did not say and what I found out through a Freedom of Information request is that once the Business District is established “any increase in sales tax may be accomplished via the passage of an ordinance during a public meeting of the Village Board of Trustees.” In other words, if the District is established by July 1 as planned, the Village Board may increase the percentage up to 1% at any time during the life of the District including at the next Board meeting on July 5th. Can she or anyone else guarantee that the ¼% amount will not be raised to the full 1%? No!
Furthermore, she downplays the ¼% increase as just being a quarter for every $100 of merchandise purchased. However, paraphrasing the late Senator Everett McKinley Dirksen, “a quarter here, a quarter there, and pretty soon you’re talking about real money.” And indeed, the estimate is that this tax increase will raise $400,000 a year. $400,000 of our money that we can not spend on other goods and services or save. If it is so minimal, is she and/or the Village Board willing to pay my and others’ extra tax payments if we don’t approve of the extra tax? It is easy for government to spend other peoples’ money!
She states correctly that Morton’s sales tax is lower than other communities. She then implies that is sufficient reason to justify the increase. It is not! Why should we increase our tax just because other communities have an even higher tax? If these communities made poor governmental decisions, does that justify the Village doing the same? Hypothetically, if Pekin has a $10,000,000 deficit, does that justify Morton increasing its deficit by an extra $100,000 because it is still lower than Pekin’s?
She declares that the sales tax is paid by both Morton residents and non-residents who shop in Morton. Yet, she does not say what percentage is collected from non-residents. Is it a 50-50 spilt? Is 95% of the sales tax coming from Morton residents and only 5% coming from non-residents? Does she know?
Finally, according to another Freedom of Information request, the Village has no study or research dealing with a cost/benefit analysis of such an increase. Will the benefits be greater than the costs involved? If so, by how much? Would any of us buy a new car without knowing what we are buying? If this is such a beneficial investment, why aren’t the private businesses doing these capital improvements with their own money to increase their business profits and increase the value of their property?
I had planned to begin another series on video gambling tonight. I’m changing that with a response to an article in the Peoria Journal Star on February 16, 2010, page B2. I’m posting most, but not all, of the story and then my comment which is in the form of a letter to the editor which I plan to mail to the paper today.
“Daly argues for Morton sales tax increase
But people at public hearing speak against it, drawing applause
By Steve Stein
OF THE JOURNAL STAR
Morton—On a night when Mayor Norm Durflinger unveiled a lengthy list of revenue-producing possibilities for the village, a sales tax increase for a proposed business district grabbed the spotlight.
The 0.25 percentage point increase—from 6.75 to 7 percent—is part of the village’s proposal to establish the expansive district. The estimated $400,000 generated annually by the increase would be used exclusively for business infrastructure and streetscape improvements within the district.
Several audience members spoke against the sales tax increase at the first of two public hearings for the district that will be held by the Village Board. The next hearing will be March 1, with board action scheduled for March 15.
Each comment in opposition to the increase and the use of the money was received with applause from the audience.
‘This is frivolous spending when people are hurting,’ said resident Patte Winn.
‘How can this be a major priority when you’re talking about laying off three police officers and the assistant police chief?’ asked resident Don Vance, referencing village budget-cutting suggestions made recently by village employees and department heads.
Other speakers expressed a concern about the cumulative effect of possible federal, state and local tax increases, and suggested lowering the sales tax by 0.25 percent and vigorously advertising the fact.
(Here’s the matter I’m commenting on—my addition.)
Jennifer Daly, executive director of the Morton Economic Development Council, which proposed the business district and sales tax increase, said after the meeting that she understands residents’ concerns.
She said the council could have proposed the maximum increase of 1 percentage point but kept it at 0.25 percentage points because of the economic climate.
The additional tax would add 25 cents to a $100 purchase. Automobiles, groceries and medications would be among the exempt items.
‘Nobody likes proposing a sales tax increase but this is the best way to achieve one of the major goals of the village’s comprehensive plan,’ Daly said.
‘Even if the village’s sales tax increases to 7 percent, we’d still be 1 to 3 percent lower than area communities,’ she added. ‘And not only Morton residents would be paying the extra sales tax. Everyone who buys something in Morton would pay it.’”
My letter to the editor:
After reading the article titled “Daly argues for Morton sales tax increase,” I believe some clarification is necessary.
She is quoted as saying “…the council could have proposed the maximum increase of 1 percentage point but kept it at 0.25 percentage points because of the economic climate.” What she did not say and what I found out through a Freedom of Information request is that once the Business District is established “any increase in sales tax may be accomplished via the passage of an ordinance during a public meeting of the Village Board of Trustees.” In other words, if the District is established by July 1 as planned, the Village Board may increase the percentage up to 1% at any time during the life of the District including at the next Board meeting on July 5th. Can she or anyone else guarantee that the ¼% amount will not be raised to the full 1%? No!
Furthermore, she downplays the ¼% increase as just being a quarter for every $100 of merchandise purchased. However, paraphrasing the late Senator Everett McKinley Dirksen, “a quarter here, a quarter there, and pretty soon you’re talking about real money.” And indeed, the estimate is that this tax increase will raise $400,000 a year. $400,000 of our money that we can not spend on other goods and services or save. If it is so minimal, is she and/or the Village Board willing to pay my and others’ extra tax payments if we don’t approve of the extra tax? It is easy for government to spend other peoples’ money!
She states correctly that Morton’s sales tax is lower than other communities. She then implies that is sufficient reason to justify the increase. It is not! Why should we increase our tax just because other communities have an even higher tax? If these communities made poor governmental decisions, does that justify the Village doing the same? Hypothetically, if Pekin has a $10,000,000 deficit, does that justify Morton increasing its deficit by an extra $100,000 because it is still lower than Pekin’s?
She declares that the sales tax is paid by both Morton residents and non-residents who shop in Morton. Yet, she does not say what percentage is collected from non-residents. Is it a 50-50 spilt? Is 95% of the sales tax coming from Morton residents and only 5% coming from non-residents? Does she know?
Finally, according to another Freedom of Information request, the Village has no study or research dealing with a cost/benefit analysis of such an increase. Will the benefits be greater than the costs involved? If so, by how much? Would any of us buy a new car without knowing what we are buying? If this is such a beneficial investment, why aren’t the private businesses doing these capital improvements with their own money to increase their business profits and increase the value of their property?
posted by Christian Gunslinger at 4:30 AM
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