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In their work session Tuesday evening,
members of the city council agreed to put the one-half of 1 percent
retailers’ occupation tax before the voters again as soon as
possible. Aldermen said they were disappointed in the more than
two-to-one vote against the tax increase: 2,980 no votes to 1,881
yes votes.
"A lot of people voted no because they
didn’t understand this," said Steve Fuhrer, a former finance
chairman who struggled to cut the budget and find new revenue
sources last year.
The economic downturn that has brought
historically low interest rates has cut the income the city receives
from its investments, and lower sales tax receipts have also taken a
toll on the city’s revenue.
The sales tax increase was earmarked
for work on the city’s infrastructure, which has come to a halt
because of budget constraints.
Fuhrer urged the council to get the tax
increase on the ballot April 1 because otherwise they will have to
wait until the general election in November of 2004. City attorney
Bill Bates confirmed that there were no legal restrictions against
putting the proposal on the ballot next spring.
Fuhrer said he believed the city didn’t
start explaining the need for the tax increase early enough.
"We need to walk our wards and talk to
people," he said. When he walked part of his ward before the Nov. 5
election, people who understood the details of the tax increase said
they were for it, he said.
He also suggested the council "hold
board meetings or town meetings where people can come and ask
questions."
Fuhrer also asked if it would be
possible to word the question on the ballot to say that there will
be no tax increase on vehicles licensed by the state, prescription
drugs or food bought for home consumption. He said he believed many
voters did not know that.
Verl Prather, present finance chairman,
said Lincoln residents need to understand that without some new
revenue there will be no more street repair work.
"Wyatt Avenue was the last street
project we have done in this city," he said, "and there is no money
for more.
"Between now and March [when budget
discussions will be under way], be thinking about what we can cut,"
he told the council. "I don’t know if it will be layoffs or what."
"The next budget is going to be as
tough as the last one," city clerk Juanita Josserand said. Last
fiscal year, the city spent about $280,000 more than it took in, and
to help balance the budget, borrowed money from set-aside funds.
That option won’t exist next year, Prather pointed out.
Les Plotner, city treasurer, said the
council should let people know exactly what the projected income of
about $550,000 from the tax increase will be used for, such as Elm
Street repairs and the sewer extension on Campus View Drive.
Prather replied that the city has "no
shortage of projects" to tell the public about.
In other business, Alderman Glenn
Shelton said the council needs to continue discussion of the
practice of city police working for organizations and businesses
other than the city.
The procedure in the past has been for
the city to pay the police officers and the organizations to repay
the city. However, this may give the city added liability, and the
city must also make additional payments into the pension fund. He
suggested that Police Chief Rich Montcalm develop an alternative
plan for private businesses — one that does not involve the city.
Such a plan has already been adopted by
the Illinois-American Water Company, which hires off-duty police
officers for security.
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Prather said he agreed the private
businesses should not involve the city, but he thought police
protection for schools and community projects should be in a
different category.
The Lincoln Fire Department has several
pieces of equipment it no longer uses and would like to sell or
donate to other communities that want them, Fire Chief Bucky Washam
told the council. The equipment includes air raid sirens and
extrication equipment, all of which is 25 to 30 years old. The city
will need a disclaimer of liability before donating or selling these
items, and the matter was turned over to the ordinance committee.
Mayor Beth Davis reported that the
Logan County Economic Development Council is still looking for a new
director. She said some candidates are "concerned" about the small
amount of money available for salary and expenses. She said the EDC
cannot hire the best candidate within the present salary range.
Both the city and the county have been
contributing $25,000 each year to the EDC, and that, with a private
contribution of about $6,000, gives the director less than $60,000
in cash for salary and promotion expenses, according to Bobbi
Abbott, executive director of the Lincoln/Logan County Chamber of
Commerce. The chamber also makes an in-kind contribution in services
of $14,000 to the EDC budget, Abbott said.
Several council members said they are
not getting enough information about the EDC and the process of
hiring the director.
"I wish we and the county board were a
little more informed," Prather said. "We don’t get meeting notes or
minutes, and we have no input on who they hire. Is there any way the
council or the county board can have some input or interview the
candidate?"
"We need more communication," Fuhrer
agreed.
Bates reported that he has had a
communication from the Pedcor group, an Indiana firm that plans to
develop Brainard Landings, an apartment complex on 21st and State
streets. The company wants to subdivide the lot owned for their
apartment complex into two lots instead of one, he said. He said the
subdivision appears to meet city requirements.
Several council members said they would
like to have a member of the firm attend the Nov. 25 meeting and
give them an update before approving the subdivision.
Council members also debated the
possibility of fighting the water rate increase that
Illinois-American Water Company is requesting. The request must be
approved by the Illinois Commerce Commission, and the city would
have to petition the ICC not to approve the rate hike.
Bates said he had talked to an attorney
from the Citizens Utility Board, Karen Norington, who said she had
talked to other Illinois communities wanting to protest the
increase.
Bates said Norington quoted possible
rate increases of 25 to 45 percent. Davis said a water company
representative had told her the increase in Lincoln would be only 13
percent.
Bates also said the city would need a
specialized attorney to deal with the ICC, and that would probably
be very expensive. He also said he did not believe there would be a
public hearing in Lincoln on the increase.
Prather said
the city had fought a similar increase previously, and he thought
they had hired an outside attorney. "I think it was worth it," he
said.
[Joan Crabb]
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