Wednesday, Oct. 16

 

Council seeks ways to
promote sales tax hike

[OCT. 16, 2002]  A proposal to increase the city of Lincoln’s sales tax by one-half of 1 percent will be on the ballot Nov. 5, and members of the city council are looking for ways to convince residents to vote for it.

Aldermen are afraid that voters will see the word "tax" and automatically vote no.

"People I have talked to are against any tax increase, period, but they always ask ‘Why?’ and ‘What’s it for?’" Alderman Glenn Shelton said at Tuesday night’s work session.

The consensus of the council was that voters need to have those questions answered in the three weeks that remain before the election.

Voters who read the ballot item carefully will see that the tax increase is "for expenditure on public infrastructure," but Alderman Pat Madigan pointed out that not everyone knows exactly what infrastructure is.

"We know it because we use it all the time. It means city roads, streets and alleys," he said.

It also means sidewalks, sewage treatment facilities, drains and other improvements to the city itself, said Les Plotner, city treasurer.

Alderman Verl Prather, chair of the finance committee, said the city does not have the money now to do any street work. Any street improvements going on are those on state highways, with the state paying the bill.

For example, improvements to South Elm Street have been postponed for the last two years. Other improvements that cannot be funded now are a Sherman Street upgrade and a sewer line to residents on Campus View Drive, he said.

 

The city is facing a budget crunch because of historically low interest rates on money it invests and low sales tax receipts. Last year the city spent about $280,000 more than it took in, and this year it is also operating on a deficit budget.

Alderman Steve Fuhrer, former finance chairman, said voters need to know how little the tax increase will cost and exactly what will be taxed and what won’t.

Presently the city tax is 6¼ percent, lower than most other cities in the area, which tax at 7¼ percent or more, he said. The increase will bring the Lincoln tax rate to 6¾ percent, still below the rate of neighboring municipalities.

"If I spend $100, what will the tax increase cost me?" he asked. "Only 50 cents more."

The tax increase will not be added to food or prescription drugs, which are taxed at a lower rate, only 1 percent. The new tax will also not be added to vehicles that must be licensed by the state, such as cars and trucks.

Another point voters need to know is that out-of-town visitors will be helping to put the extra money in the city’s coffers, Fuhrer said. The businesses on the west side — motels, restaurants, gas stations and others — are all within the city limits and collect city sales taxes, and many of them are patronized by visitors driving by on Interstate 55.

 

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"People from out of town are going to be helping us just as much as people from in town," Fuhrer said.

"This is a fair tax, based on what you spend," Prather added. "Senior citizens on a fixed income will be spending a lot less than I do with a family of seven."

Plotner said he would put together a fact sheet on the tax increase to pass out to voters. Other suggestions were that alderman walk their wards and talk to people about the upcoming referendum.

In other business, the council debated whether to change the wording on contracts with bidders for equipment and labor on the sewage treatment plant upgrade.

City Attorney Bill Bates said he was concerned about wording in the agreement for the $9.8 million Illinois Environmental Protection Agency loan that says the funds will be paid to the city subject to their appropriation by the Illinois General Assembly.

He said the wording might leave the city liable for payment to contractors if the General Assembly did not pass the appropriation. He suggested that language be added to bidders’ contracts saying the city’s ability to pay is contingent on receiving the loan from the state.

Joseph Pisula of Donohue and Associates, engineer on the sewer plant upgrade, said any contract with the state is contingent upon appropriations passed by the General Assembly. He pointed out that the EPA loan is not like a bond issue, where the city has the money up front. The EPA holds the funds and pays expenses as they come in.

Theoretically there is a risk, he said, but interest on the EPA loan, at 2.5 or 2.6 percent, is much cheaper than interest on any other type of funding the city could get for the project.

Grant Eaton, sewer plant manager, said he believed contractors would object to the language Bates suggested.

The council will vote at its next regular meeting Oct. 21 on whether to add the language to the contracts and whether to allow the language to be removed if contractors object to it.

Mayor Beth Davis was absent from the meeting because of illness.  Mayor pro tem George Mitchell was out of town, and Alderman Verl Prather chaired the meeting.

[Joan Crabb]


County votes to raise
hotel tax one-half percent

[OCT. 16, 2002]  On Tuesday night the Logan County Board voted unanimously to raise the county hotel-motel tax by one-half percent to the maximum allowable 5 percent.

The tax increase, effective Dec. 1, is expected to raise about $10,000 in new money. Of this sum, the Finance Committee recommends granting $4,750 to the J.H. Hawes Grain Elevator Museum in Atlanta to pay for renovating and restoring a wooden boxcar and extending the railroad siding it sits on. Finance Committee chair Rod White said the other approximately $5,000 in new money is unallocated at this time. The maximum allowable hotel tax rate for counties the size of Logan is 5 percent.

Of last year’s 4½ percent levy on hotel and motel revenue, 4 percent went to the Abraham Lincoln Tourism Bureau of Logan County and one-half percent to Main Street Lincoln for the Looking for Lincoln committee. The Finance Committee recommends continuing this distribution.

Thressia Usherwood, executive director of the tourism bureau, on Friday requested $1,100 of the unallocated new money to be used for keeping Mount Pulaski Courthouse and Postville Courthouse state historic sites open for special events. Board member Paul Gleason said state funding for historic sites is being cut.

The amount raised by the hotel-motel tax cannot be predicted precisely because it varies with the number of rooms rented. Finance Committee member Dale Voyles said the committee "looks with favor" on Usherwood’s request but prefers to leave a sum unallocated until some of the 2002-03 money is collected and the estimate of the year’s proceeds is firmer.

 

Finance Committee member Roger Bock quoted state law to show that it is broad in listing potential uses for the hotel-motel tax. Proceeds can finance tourism, convention facilities, theatrics, and sports and cultural activities. Bock said he would like to see projects presented at budget hearings so the board can vary the allocation from year to year.

In other financial business White said details of the proposed fiscal 2002-03 budget will be presented at a called board meeting at 7 p.m. Thursday, Oct. 17, in the first floor courtroom of the courthouse. At that time the full board can make additions and deletions. Final vote on the budget is set for the Nov. 19 board meeting. The fiscal year begins Dec. 1.

The proposed budget carries a deficit of approximately $175,000. White said over $300,000 was cut from initial budget requests. The savings came primarily from three departments. Building and grounds was cut $135,000 by reducing some of the component line items, including remodeling, elevator repair, sidewalks and parks. Finance Committee member Dick Logan said these cuts are being made until the local economy and county revenues improve.

Second, White said the sheriff’s budget was pared by $70,000, consisting mostly of the price of two new patrol cars. Purchase of the vehicles will be deferred for another year. Finally, the juvenile probation budget was cut by $50,000. Electronic monitoring is expected to save money for the probation office, White explained.

 

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In a unanimous ballot the board voted to form a safety committee charged with creating a safety manual and program. Insurance and Legislative Committee chair Dale Voyles said the safety committee is needed to meet workers compensation insurance requirements. It will also give employees a place to take their concerns over safety issues. Because the committee will be composed of existing employees, he said there will be no cost. In fact, there is a potential savings from safer facilities and procedures and lower insurance costs. The committee has two models to consider in setting up the safety program.

In other business, board chair Dick Logan appointed Gloria Luster and Roger Bock to the governing body of the six-county Resource Conservation and Development area. In May the board voted to enter the RC&D, which also includes Cass, Christian, Mason, Menard and Sangamon counties. Bill Dickerson of Natural Resources Conservation Service said the purpose of the area is to identify types of natural resource concerns and methods of addressing them, including applying for grants. The RC&D board will prioritize applications.

The county board approved both appointments. Luster, assuming she regains her seat in the November election, will serve a three-year term as board representative beginning Jan. 1, 2003. Bock, who was defeated in the primary and will no longer be a board member after Dec. 1, will serve two years as an at-large representative. The Logan County Soil and Water Conservation District will appoint another two representatives.

In accordance with a straw vote taken Thursday night, the county board voted to grant a conditional use permit to Leslie, Karen and Christopher Hoagland for their property at 1377 1200th Street in rural Lincoln. The land is zoned agricultural, and the Hoaglands asked for conditional use as a junk or salvage yard to operate their motor coach restoration business.

The motion by Zoning Committee chair David Hepler referred to "Leslie and Karen Hoagland and their immediate family." Voyles moved to change the wording to specify the Hoaglands’ son Christopher, who is active in the business.

The board also gave final approval to the plat for Grant Estates subdivision on 840th Avenue in West Lincoln Township. County engineer Tom Hickman said that Brad Luckhart, the owner and developer, has met Logan County subdivision regulations.

[Lynn Spellman]

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