McHenry County Blog

The anti-tax wave that the Tea Party movement capitalized on has not run its course in McHenry County.

With 64 of 212 precincts reporting, it is obvious that the referendum to add $9 million to the property tax bill in McHenry County has failed.

The margin is wide enough to predict the referendum will fail.

The proposal would have increased real estate taxes by $30 per $100,000 of actual value.

The extra money would have gone to aid agencies that provide services to the Developmentally Disabled.

The in-person results for the 377 Developmentally Disabled tax hike referendum showed more than two people voting against it for every one person in favor.

The results for Algonquin 7 and 19 precincts, both of which vote in the Crystal Lake Main Beach House follow:

The in-person election day results for the 377 Board tax hike in Algonquin 7 were 78-34.

In Algonquin 19, those voting in person went 58-27 against the tax hike.

Andrew Gasser

Andrew Gasser, a Republican Precinct Committeeman from Fox River Grove has been active in his opposition to the referendum to hike taxes $60-$90 a year (the cost for $200-300,000 homes).

He was even interviewed by the Chicago Tribune for its article last Sunday. Maybe that’s why his web site was shut down by an 20,000 hits in fifteen minutes.

In any event, Gasser called me today to tell me he was opposed to the referendum to raise $9 million more in real estate taxes to help the Developmentally Disabled.

I have weighed in on the reasons for my opposition, as recently as yesterday.

That’s when I learned from the Tribune that the 708 Board is only giving 10% of its $13 million a year to DD services. (In that article I explain that when I was McHenry County Treasurer in the late 1960′s I delivered the first checks. My memory tells me I took $25,000 to Pioneer Center and $25,000 to Family Services. A 50-50 split, in other words.)

In any event, here is Gasser’s telephone message:

“Hi, this is Andrew Gasser, a concerned neighbor, calling to ask you to vote NO tomorrow on a ballot Proposition to increase your property taxes.

“We live in the 29th most expensive county… in the nation, yet the political class wants more.

“Why should we continue to tighten our belts to live within our means while they use our homes as personal ATM machines?

“Join me tomorrow and vote NO.

“Thank you.

“This call was paid for by Citizens of McHenry County Against Higher Property Taxes. (708) 320-1073.”

When there were so, so many tax hike referendums, Libertyville’s Jack Martin had these generic signs printed.

I guess progress is being made.

The Northwest Herald did not endorse the creation of a 337 tax district to funnel $9 million more dollars into carrying for the developmentally disabled in McHenry County. (The 337 designation is from the number of the section in the Illinois statutes that authorizes the referendum to approve the tax.)

There was a time when every tax increase proposal seemed to automatically receive the NWH stamp of approval.

But the paper’s editorial board could not bring itself to recommend a “No” vote.

I can.  You can read why in these articles:

• 11-9-12 McHenry County Board Resolution for 377 Board Tax Hike Referendum Seems to Endorse It
• 3-8-13 Tax Hike Referendum Set for April 8th
• 3-22-13 Campaign Against 377 Board Referendum

I guess taxpayers should be grateful passage of a referendum is required before this ten cents per $100 of assessed valuation tax is imposed.

The majority on the current McHenry County College Board seem bent on borrowing over $40 million to build a health & fitness club, plus almost double the size devoted to classrooms and labs without allowing a public vote.

708 Board Building, the payment for which has diverted money that could have gone to services.

As I have reported in November, there’s an attempt to create a tax district similar to the 708 Board to serve the developmentally disabled population of McHenry County.

The problem, as I have pointed out, is that the 708 Board was created for that purpose.

How do I know?

I was County Treasurer when that referendum was passed in the late 1960′s.

It was supported by an organization that I remember being called the McHenry County Citizens for the Retarded.

When the taxes came in I took the first checks to both Pioneer Center, which was located in the old Terra Cotta School House off Route 31 and to Family Services, which was located on the street running from now-McHenry East High School to the Fox River (where the four-story city-subsidized four-story building is located).

As I remember, both those serving those then called “retarded” and those serving those with mental problems both got $25,000 checks.

The current maximum tax rate is 15 cents per $100 of Assessed Valuation.  Because of the Tax Cap that rate has been forced back to 14.5 cents per $100.  The taxes extracted last year approach $12.7 million.

The 708 Board started out giving 50% to the Developmentally Disabled side and 50% to the mental health side.

Over the years, Pioneer Center and others serving the same population have felt shortchanged.

That is the reason for the current referendum to create a special tax district to provide about two-thirds of money as the 708 Board collects. (If I am incorrect, please advise in the comment section.)

Just because the 708 Board is not living up to expectations of its responsibility of part of the population it is supposed to serve is not sufficient reason in my opinion, to vote to impose another layer of government and taxes on McHenry County.

I see Fox River Grove Republican Precinct Committeeman Andrew Gasser agrees.

His first article, “No on the 366 Board,” is unambiguous from the title on.

His second one, “The ‘Language’ of 377,” talks about who will be hurt most by permanent higher taxes.

This proposals proponents are running a virtual stealth campaign.

I found something on the internet, which I posted here.

Below is what you will see at the bottom of the ballot:

The 377 Board Ballot calling for a substantial tax increase.   It looks like 10 cents per hundred dollars of assessed valuation.

The strategy of a stealth campaign, often run by school boards, is to let your supporters know and ignore the undecideds and those likely to be opposed.

Good strategy.

Elections are about differential turnout, of course.  In other words, which side can get more of its supporters to the polls.

I did find the following card supporting the tax hike:

This side of the campaign piece supporting creating of the 377 Board and its tax increase concentrates on the need.

The argument made on this side estimates the cost at $33.33 cents per $100,000 of home value.  Virtually no one’s home is worth on ly $100,000, of course.  If one’s home were worth $300,000, it would cost $100 a year, for example.

The tax would bring in about $9 million., the proponents say.

A friend of McHenry County Blog chides me and other local medias for not informing pe0ple of the 377 Board tax hike on the April ballot.

Here’s what I have written so far (click on the title):

McHenry County Board Resolution for 377 Board Tax Hike Referendum Seems to Endorse It

In that article I tell of how the money was distributed right after the 708 Mental Health Board was created.  It was a 50-50 split between Family Services and Pioneer Center.  The 708 Board no longer gives 50% of its money to the developmentally disabled.  No reason they could not, however.

As in any low-turnout election, supporters of the tax increase try to mobilize their supporters without alerting the general public.

Here’s the email I received:

“You might want to highlight that the 377 Tax Proposal that is going to be on the ballot on April 9, 2013.

“The powers that want it passed are keeping the issue on the down low with no campaign hoping that only their supporters will show up to pass this new tax and that the general public will not even be aware that this possible new property tax increase will be on the ballot.

“They are promising that it will not turn into the 708 Board Mess but what stops it from turning into the exact same type of mess (Nothing).

“Also, it should be noted that many of these social services organizations already have a great deal of tax dollars and that their spending of these dollars is already questionable?

“Fancy executive type cars paid for by the organizations they represent, expense accounts and little if any transparency of how they spend their monies.

“Not to mention six figure salaries and benefit packages for some social service administrators.

“Being a Republican I am not in favor of any new taxes and making property taxes higher to support more government.

“Yet, I am caring and would vote for a tax to help Developmental Disabled, if I though the money would get to them directly, but it will only pay for more highly paid administrators.

“Seems to work the same way as in school districts.

“I hope you will at least alert your readers to the upcoming issue of the 377 tax proposal on the upcoming election ballot and that they need to get out and vote their opinion and not to let a select few make this decision for everyone in McHenry County.“

Below is a fly that has been developed by the 377 Board supporters:

Flyer putting forth the reasons for voting for the 377 Board tax hike.

Finally got a copy of a mailing supporting Nunda Township Supervisor candidate Bridgett Provenzano.

This is a hit piece on opponent Lee Jennings’ tax votes. And nobody claims authorship.

The address side of Bridgett Provenzano’s supporters’ hit piece on her opponent for Nunda Township Supervisor Lee Jennings.

This hit piece from a unknown group with no individuals name or address attached called “Nunda Taxpayers United.”  The piece claims Lee Jennings voted to raise 26 tax levies, rejected former Supervisor John Heisler’s 2011 recommendation to keep the levy constant, instead voting to raise the levy and rejected a proposal to cut township officials’ salaries 20%, instead voting to cut them 2%.

Randy Hultgren

A press release from Congressman Randy Hultgren:

Three Months Left Before Largest Tax Increase in U.S. History

GENEVA, IL—U.S. Representative Randy Hultgren (IL-14) is reminding constituents that as of today, October 1, there are just three months left until the largest tax increase in history.

Current tax rates will expire on January 1, 2013 if no action is taken.

According to the nonpartisan Congressional Budget Office (CBO), failure to extend current income tax rates and deal with the Alternative Minimum Tax (AMT) will increase taxes on working Americans by $232 billion in 2013 alone.

This means that

• a family of four earning $50,000 per year could pay almost $2,200 in higher taxes (a five-fold increase in their tax liability),
• a single mom earning $36,000 per year could pay more than $1,100 in higher taxes (nearly doubling her tax liability) and
• married senior citizens earning $40,000 per year could pay nearly $1,700 in higher taxes (more than doubling their tax liability).

Only the House of Representatives has passed a plan to stop the impending tax hike in January.

Earlier this year, just before it passed the House, Congressman Hultgren explained his reasoning for supporting the plan in the above video statement.

Take a look at this special notice for a Crystal Lake City Council meeting early Tuesday night:

The agenda for a special Crystal Lake City Council meeting on financing options for expanding the Crystal Lake Public Library.

“Presentation, Discussion and Feedback of the Draft Crystal Lake Public Library 2011 Needs Assessment including options for building and operations expansion.”

As some will know, the City Library was turned down for a building subsidy by the State Library officials under the control of Secretary of State Jesse White.

The Library Board, however, has some other options.

It can run another referendum giving voters in Crystal Lake the right to decide whether or not they want their property taxes to be raised.

Too late for that to occur during the November election, but it could appear on the Republican Township Primary ballot in late February or on the April local election ballot when school, municipal, park district and township officials are elected.

Or, the Crystal Lake City Council could decide just to approve the issuance of bonds to finance the expansion without voter approval.

That’s allowed for city councils and village boards with populations above 25,000 or in smaller municipalities if the voters approve a Home Rule referendum.

I shall be otherwise occupied Tuesday night, so if you attend the meeting, please send me your observations of what happens. Direct quotes from city council members are especially welcomed.

A public official mentioned that the Tax Cap is going to “cost” the McHenry County Mental Health Board $600-900,000 this coming year.

Problem about bumping up against the Property Tax Cap, I gathered.

Whenever I heard a tax district official complaining about losing money because of PTELL (the acronym of the law’s title, which only the technocrats use), I think, “That means the taxpayers are saving ‘X’ dollars.”

Just a difference of perspective I figure.

Taxeater vs. taxpayer.

I decided to take a look at the McHenry County Clerk’s web site page for tax rates for this year to see where taxpayers might save money next year because this year’s tax rate is closer to the maximum rate set by law that the district could not get the 3% inflationary rate.

Looking at the Mental Health Board first, I saw a maximum tax rate of 15 cents per $100 of assessed valuation.

Last year’s tax rate was 14.3976 cents per $100. (And, yes, the decimals go that far.)

When I multiplied the increase of the CPI times 14.3976 I got 14.8295–still under the maximum rate.

If there is to be a “loss” of $900,000 because of the Tax Cap, I don’t see why.

I guess I misunderstood what would be causing the loss.

Now, if the rate of inflation went up 3% next year, too, then the Mental Health Board would be over the 15 cent rate set by voters in its referendum approval of the tax district.

Even so, it’s an interesting question.

Which districts are close to having to live like taxpayers on a fixed income?

Think retirees not on a government pension.

McHenry County Board

It won’t ever be McHenry County government, because there is no statutory maximum on its

• corporate rate
• pension rate
• Social Security or
• liability insurance

The Tax Cap is the only thing keeping these rates in check.

And, we know that the McHenry County Board has adopted a policy in recent years of taxing to the max.

You know what they say about stocks: “Past performance is no prediction of future performance.”

The County Board could change its ways.

Maybe it will.

That’s certainly what is being reported in the two Heralds.

The County Board could pass its levy before the November election, too.

Anyone want to bet they will?

Last year the budget was passed in mid-November.

So, all we have is past performance.

Here are last year’s roll calls, which resulted in County government’s getting as much money as possible under the Tax Cap.