McHenry County Blog

Since McHenry County Blog was started in reaction to the Crystal Lake City Council’s putting Route 14 next to the Vulcan gravel pit in a Tax Increment Financing District, perhaps you will excuse me for returning to the subject once in a while.

For those with memories that don’t go back to 2005, the Vulcan Lake TIF District was going to finance the Three Oaks Recreational Area (TORA, for short).

But right after picking Bill Cellini’s firm to do the development work, Cellini was identified as one of those “Person A” or some other designation in a U.S. Attorney’s indictment.

Cellini, who made substantial sums for the Teachers Retirement Fund from real estate investments pulled himself out of the TIF District management and, eventually, his firm withdrew as well.

Of course, anyone who drives past that Route 14 TIF district knows there has been no real estate appreciation that could possibly have paid for TORA’s development.

So, the City Council decided to high its share of the sales tax by 75% to do the same thing.

That brings us to the question of who pays for TIF-financed projects.

The answer is you, if you live or own property in McHenry County.

In his column on Thursday, the Sun-Times’ Mark Brown reminds readers of that in the context of the DePaul basketball stadium to be subsidized by Cook County taxpayers.

Although it will be on the Chicago lakefront, every taxpayer in any tax district covering McCormick Place will help pay for it as other tax districts raise their tax takes in order to cover future losses of assessed valuation.

Here’s the response to my request for information about the decorative Route 14 street lights paid for with money from people all over McHenry County through the Virginia Street Tax Increment Financing District:

A year and a half ago in November of 2011, Crystal Lake city officials gathered in McCormick Park to dedicate the improvements along Virginia Street financed by that street’s Tax Increment Financing District.

Among the improvements were low and high street lights that matched.

During the week of rain, I was stopped at the light at McHenry Avenue and looked at the lights.

They were not the ornamental ones put there with TIF money.

The McHenry County League of Women Voters and the American Association of University Women in Crystal Lake sponsored a candidates night for the five candidates for three seats on the Crystal Lake City Council.

Two challengers–Charles Ebann and Jim Tomasello–are facing off against two elected incumbents–Ralph Dawson and Jeff Thorsen–plus appointed member Cameron Hubbard.

To knock an incumbent off one has to sound different.

In neither their opening nor closings statements did the challengers indicate how they would do a better job than those now in office.

Numerous times the challengers agreed with the incumbents, gave an answer that was quite similar to what the sitting Councilmen or didn’t have a good enough grasp of the subject to say much more than the question needed more study.

Not that the incumbents did not use the final option as well. Just not as often.

Below are some of the answers.

In a question about challenges being faced by the City, incumbent Thorsen came up with an answer different from the others. He said he was most worried about what would happen in Springfield, but pointed out that was “uncontrollable.”
He mentioned specifically the state’s sharing of income tax receipts with municipalities.

“When are we going to stop? Banning 56 ounce cups?” Thorsen asked in answer to question on banning plastic bags, which the City probably has the ability to do using its Home Rule power.

He said the main problem was with waste haulers, presumably with the bags falling out of the trucks after pick up.

Tomosello agreed saying, “I don’t think we can ban plastic bags.” He suggested making it easier to re-cycle them.

“I don’t do the shopping, ladies,” Dawson said. “I don’t bring them home. Will prople stop using them? I don’t think so.”

Excluding education, Ebann didn’t think there was much “specifically we can do.”

Hubbard also suggested encouragement, adding that cloth bags have been found to be unclean after repeated usde.

“I don’t think this is anything we should be stepping into.”

You can guess who asked about Tax Increment Financing monuments, can’t you?

“Yes, I voted for them,” Dawson said. He noted that they were “a little controversial,” but were “appropriate.”

Ebann said he was “not sure” if he would have voted for them.

While admitting he voted for the monuments, Thorsen shed new light on the matter.

He explained they were the “subject of a compromise.”

A “Lakeside motif” was being sought “and the columns were actually going to be lighthouses.”

He said the Council went from a “lighthouse to a column.”

Tomosello checked out the details with city officials last week and came to this conclusion: “I definitely would have voted “No.’

“I think it was a big waste of money.  They’re not even lined up.”

Should there be another TIF district so the ornamental lights would continue down Route 14 toward Cary?

“It really depends.  Possibly.  I don’t know,” Hubbard replied.  “I would definitely have an open mind.”

“At this point, in this economy, I’m not [inclined to support it],” Thorsen said.

“In a time [where] we have a lot of growth, I think there’s room for things like that.”

Tomosello:   ‘I don’t know how I’d vote on that.”

“Boy, I voted for that one,” Dawson said, then commented on the problems the city had had with the ornamental lights.

“Bad manufacture.”

And to the question:  “Very possibly. I’d have to be open-minded.”

He pointed out that Downtown’s revitalization was a result of a TIF district.

“I’d need to look at all of the information.  I’d keep an open mind on it,” Ebann added.

De-criminalizing marijuana came up.

You may remember that the Council divided 4-3 in favor of issuing tickets for possession of pot late last year, but decided to let the new Police Chief weigh in on the issue before passing an ordinance.

“I’m not big on marijuana as it is,” Tomsello started out, adding that he had never tried it.

“If decriminalization will give our police officers more time and bring in new revenue,” he continued [but I didn't get the rest of the sentence].

“I’m really torn on it.  I would decriminalize it.”

Dawson pointed out that it had been brought up four months ago by the Chief of Police.  He pointed out that “they are talking about i[lower penalties] across the country.”

“I am not in favor of decriminalizing of marijuana,” Ebann said.

“I am not for creating criminals [by] charging a child,” Hubbard explained.  “I don’t know whether the city is read at this time. ..I’m undecided at this time.”

Thorsen:  “Currently, the laws are a bit draconian. We needed to put in a new Chief,” he said, indicating he would defer to his opinion.  He added that he would “rather than take a more pragmatic than an emotional [approach].”

A question was asked about waivers for McHenry County College with regard to the Watershed Ordinance.

Ebann answered, “No, I would not.”

Hubbard said he “didn’t think he would be in favor of granting a waiver, but would need” more details.

“My instinct would be not to grant too much leeway,” Thorsen stated, but  added that the Council should “wait until we hear all the voices.”

He did indicate opposition to waiving requirements for impervious surface coverage or use of Best Management Practices.

Tomosello stated he would “probably say, ‘No,’” but would need more information.

“I can’t answer,” Dawson said. “I will not answer something that will be brought before me on the Council.”

Included on the Tax Rate Calculation page of the McHenry County Clerk’s Office are totals for taxes levied on property within TIF Districts.

Tax Increment Financing Districts are mechanisms that allow municipalities to pry money out everyone in McHenry County who have property outside of the district in question.

This past year the following was taxed so that city councils and village boards could have what amount to unaccountable petty cash funds to distribute to those with property within the TIF districts.

Here’s who taxed the rest of us for how much:

• Cary – $115,681.46
• Cary 2 – $17,531.96
• Crystal Lake Virginia St. – $84,186.88
• Crystal Lake Main St. – $48,186.88
• Crystal Lake Vulcan Lakes – $25,112.22
• Fox River Grove – $501,280.62
• Harvard 2004 – $217,092,10
• Harvard 2005 – $203,854.06
• Harvard – $104,076.14
• Marengo Northside – -0-
• McHenry – $501,261.32
• Woodstock – $648,210.88

A 2007 Cub Scout meeting caused me to miss Springfield politician-developer Bill Cellini’s appearance before the Crystal Lake City Council the day it awarded the contract for the development of the Vulcan Lakes TIF District.

It wasn’t until a Northwest Herald reporter put it together in late November, I think, that I found out.

Having worked under the direction of Cellini is the 1971 Springfield mayoral campaign of Denny Kelley, I certainly would have recognized him at that city council meeting when he and had colleagues got the go-ahead to re-make Route 14 adjacent to what is now called Three Oaks Recreation Area.

Shortly after Cellini was identified by Chicago media as one of the unidentified people in Tony Rezko’s indictment, Cellini withdrew from the Crystal Lake deal.

That was done for political damage control reasons.

Certainly, Cellini is a smart enough guy to have provided value to the so-far failed efforts to re-develop Route 14.

Besides have gotten to know Bill and his delightful wife Julie back in 1971 when they still lived in a bottom floor condo on what was then a two-lane road which is not a major four-lane Springfield street, I am reminded of him pretty much every time I stay in a hotel or a motel.

He invested the curved shower curtain rod, which was first installed at the Springfield hotel on which he and fellow investors got quite a deal from state government under Governor Jim Thompson and Treasurer Jerry Cosentino. (So did former Dan Walker IDOT Rest Stop Inspector Gary Fears in Collinsville.)

His or probably knocked off curved curtain rods are now the industry standard.

More of my memories of Cellini can be found here.

Real estate tax bills being sent out in McHenry County this year will total $783,689,437.41 this spring.

That compares with $773,325,977.50 a year ago.

That’s an increase of 1.34%, which those with good memories will recall is less than the 1.5% allowed by the state’s Property Tax Cap.

McHenry County

McHenry County government’s tax bill–just under 10% of the total tax bill –will be $78,285,064.42.  That’s compared to $76,846,500.12 last year, up 1.87%.  The County Board, you may remember, voted to take every dime possible under the Real Estate Tax Cap.

Education

The Big Daddy in the Property Tax Game is always education.

Including junior colleges, elementary and high schools, that category consumes almost two-thirds (66.4%) of our tax bills.

$520,283,124.49 this year; $511,040,206.22 last year.

That’s almost a 1.8% increase.  The Tax Cap does not cover bond payments, so my guess is that some districts back-ended bond payments to keep taxes lower in past years.

Junior Colleges

Looking at the junior colleges separately, we see that the total tax bill is $31,323,344.25 this year, while it was $30,347,809.74 last year.

That’s a 3.2% hike.

Since the junior colleges are getting so much higher a percentage the the education group as a whole, it would probably be interesting to see what the unit, grade and high school districts are getting in comparison.

Unit Districts

This year the unit districts will pull in $202,025,310.67, compared to $199,937,737.99 last year.

The difference?

A bit over 1%.

Elementary Schools

Grade school districts are charging $174,244,829.51 in 2012.  Last year’s bill was $171,086,182.51.

Doing the division yields a hike of over 1.8%.

High Schools

The last component of the educational tax bill is high schools.

$112,689,640.06 is the bill this year, compared to $109,668,475.98 this year.

Up 2.7%.

So, with the exception of the K-12 unit districts, which generally have lower tax rate limits, it appears the higher one goes in the grade level, the deeper the educators dig into our wallets:

• Unit Districts – +1%
• Grade Schools – +1.8%
• High Schools – +2.7%
• Jr. Colleges – +3.2%

McHenry County College covers most of McHenry County with the exception of District 300 School District, which is in the Elgin Community College District.  Small parts of McHenry County in the Barrington School District are in the Harper College District and a bit in the Wauconda School District goes to the College of Lake County.

Cities and Villages

Municipalities are next in the order of those pecking at our pocketbooks.

$66,644,908.46 being billed this year, compared to $66,885,115.04.

To their credit, cities and villages actually are taking less money out of our checking accounts for real estate taxes–about 4/10 of one percent–than last year!

That’s worth a headline, don’t you think?

Fire Protection Districts

Let’s look at Fire Protection Districts.

$40,598,421.16 this year, $41,448,795.39 last year.

No one looks at how Fire Protection Districts are governed or what they spend, yet, so far, this category of tax district has been parsimonious with our tax dollars.

It should be noted that some municipalities have their own fire departments, e’g., Crystal Lake, so the $40 million, plus, does not comprise the whole cost of fire protection.

The FPD’s are taking over 2% less this year than they did last year.

Townships

Townships will take $25,770,362.84 this year, less than the $25,577,572.45 last year.

That’s an increase for the governmental form taking the most heat in the metropolitan media of $193,000, about a three-quarters of a one percent increase.  It should me noted that township officials are up for election next spring.

McHenry County Conservation District

The next highest taxing entity is the McHenry County Conservation District.

It will slice $19,317,898.84 out of property owners’ income this year.

Last year the total was $18,964,957.38.

The tax hike is almost 1.9%.

Library Districts

Library Districts cover a lot of the county (although Crystal Lake’s is in that city’s budget).

This year they ask you to pay $15,902,674.96.  Last year it was $15,901,974.39.

The Property Tax receipts for Library Districts will almost be constant.  Up just $700.

Park Districts

Park Districts take about as much out of the private sector as Library Districts, although municipalities like Lake in the Hill, McHenry and Woodstock do not have separate taxing districts.

$15,370,365.51 will be taxed this year compared to $15,059,395.19 last year.

The increase?

Plus 2%.  More than the Tax Cap allows, so, as with others that exceed 1.5%, it probably has to do with bond payments exempt from PTELL.

Sanitary Districts

The rest of the districts are under $1 million, so I won’t bother with them except for the Sanitary Districts, which like Fire Protection Districts, no one ever examines.  There are only two of which I am aware, the Lake in the Hills and the Island Lake (re-named the Northern Moraine) Sanitary Districts. ( I wrote about the McHenry County Health Department’s suing the latter  in a thrust for revenue, but that’s the only time I have dipped into that type of government other that attending the dedication of both of their waste treatment facilities.  The “Royal Flush” in Island Lake was a  hoot.)

= = = = =
Hoe to find your bill here.

$677,590.39 is the tax “request” from Sanitary Districts this year.  It was $667,056.58 last year.

Essentially no change for Sanitary Districts, up just $534.

= = = = =
ow to find you

Saturday morning it was foggy.

How foggy?

Take a look at the water tower in McCormick Park next to the Crystal Lake Chamber of Commerce Building.

In the foreground you can see one of the ornamental street lights financed by the Virginia Tax Increment Financing District.

That’s the one with the four $16,000 pillars at its borders on Route 14.

As I will keep repeating, a TIF District is a way for municipal officials to make off with property tax dollars which results in all other tax districts increasing their tax take in order to make up for the difference.

The latest village preparing to take part in this scam is Huntley. The village board is going to create a Downtown TIF District to raise money to make it look better.

That money will come out of the pockets of all McHenry County residents, because county government and the Conservation District cover Downtown Huntley.

I remember reading in either the First Electric Newspaper or the Northwest Herald that Trustee Pam Fender asked if the TIF District would raise taxes.

She accepted the consultant’s assurance that it was not.

The consultant was not telling the truth.

And that brings us back to our “Message of the Day”.

Fog.

Maybe the TIF consultant was just blowing smoke.

These $16,000 Crystal Lake City Council-approved Tax Increment Financing District boundary markers were made for advertising.

Unfortunately, the west wind-blown snow has obliterated the message of whomever is advertising today.

The advertiser should ask for his or her money back.

The old signs marking Lakewood’s municipal boundary were wooden and not in good shape.

So, following in the footsteps of the Crystal Lake stone masonry monument builders, the Lakewood Village Board authorized new village signs last September.

Total cost not to exceed $16,800.

No negative votes.

Early last week I noticed a hole being dug just beyond Gate 3.

By the time I got a photo, the stone framing had been erected.

Saturday, I noticed a completed sign on Huntley Road next to the bike path Hal McKinney got approved while on the village board so Country Club Road could never be extended west.  Didn’t have a camera with me though.

When I asked if it would be fair to say that each sign cost $8,400, I was informed that would be “an accurate statement.”

That’s much less than the Crystal Lake City Council paid for its monuments marking the edge of the Virginia Street Tax Increment Financing District.

They cost $16,000 each.