Archive for November 2009 – Page 2

Climate change pushes need to spend money now

The DeKalb City Council put in motion a plan to speed up downtown TIF construction projects that will put several downtown business owners at risk of failure. At a recent Renew DeKalb Rise and Revitalize meeting downtown businesses were told that it is necessary to accelerate and combine Lincoln Highway and Locust Street construction projects for completion in late 2010 or early 2011 because the “climate may change and the finances may not be available” if the original plan is followed.

The climate has changed from back in 2005 when the community, including this member, expressed support for a grand downtown revitalization plan. We were told then that the council was not approving the details of the plan and that this plan was flexible so it could adapt to unforeseen problems.

The climate has changed. In 2005 DeKalb County had a total of 2650 homes sold at an average price around $200,000 per home. In 2008 we sold just over 1100 homes at an average price near $160,000 per home. In 2005 our unemployment was somewhere near 4%. It is closer to 10% now. Foreclosure was rare news in 2005. It’s at historic national and local all time highs now.

If the reason to hurry up and borrow money to spend it on what is described by the City Manager as aesthetic improvements — because the climate has changed – perhaps we should read the assistant City Manager (Finance) warning that our FY2010 operating budget could be facing as much as a $3 million revenue shortfall as a signal that the climate has changed.

This project is funded with TIF but that alone does not mean it is without risk. To finance the TIF projects we are selling general obligation (GO) debt bonds, which places the taxpayers at greatest risk. TIF revenue bonds should be sold to finance the debt. Yes TIF bonds earn higher interest than GO bonds but that is because the bond buyer is taking more risk. But selling TIF bonds requires a much tighter plan. The investor has to see a plan they believe works. A plan that assures them that they will see a return on their investment.

Maybe city council members should ask, on behalf of their constituents, when we will see a return on investment. Using GO bonds instead of TIF bonds is bad policy.

Retired planner Paul Rasmussen (DeKalb) told the city council that, based on his experience on similar projects in Beloit and Aurora, he would guarantee that within a few short years no one, or hardly anyone, would complain or even admit that they were ever opposed. He did not, however, offer any personal guarantee on the debt repayment. He also gets a Great Disservice Award for not mentioning that he nor anyone else in attendance has experienced the current economy.

Several members of ReNew DeKalb spoke in support of accelerating the projects. I couldn’t help but notice that many of them spoke with a sense of urgency that the council might vote to stop the downtown revitalization in midstream. Perhaps an overzealous member, director or supporter is unduly promoting fear as a tactic? I’ve yet to hear a single person, speaking to the council, say they want the project stopped. Adapt to change? Yes. Stopped? No.

Are their overzealous ReNew members? Yes. Just as there are overzealous bloggers, even on the Daily Chronicle’s comment section (oh my).

Get a load of this (from the Citizen Community Enhancement Committee Meeting):

Chairman Matya advised that at the suggestion of City Manager Biernacki, he and Mr. Barnes met with Mr. Biernacki, Mr. Espiritu and Mr. Herb Rubin regarding the City’s image on blogs, etc. It was suggested that the CCEC speak to the Daily Chronicle to see what can be done regarding untruths and personal attacks on the City and its employees. [...]

[...]Mr. Barnes stated there are not enough people countering these bloggers; he added there needs to be more activity. Additionally, he suggested posting links to the City’s website which gives correct information on issues. However, Ms. Small said, responding gives them credibility and will only prolong their discussions. She added their comments indirectly affect policy.[...]

[...]Ms. Small announced there is an open house on Tuesday, September 22nd from 4-6 p.m. at the Chronicle. She added the Chronicle may be motivated to take action if they are pressured by their advertisers.[...]

ReNew DeKalb members in bold text.

Ms. Small is an assistant director of the DeKalb Park District. The park district is prepping for a multi-million dollar referendum in the Spring of 2010. Promoting such an idea as pressuring the Chronicle through their advertisers is troubling when it comes from an appointed public employee.

Here’s an idea: Follow Mr. Barnes suggestion and post comments that support and/or clarify ReNew DeKalb positions and by all means post links that give accurate information. When a post contains untruths or personal attacks then report it. Such posts are in violation of the Chronicle’s policies and I’m sure they will remove them. I hear Herb Rubin has probably had more posts removed than anyone in town.

Speaking of Herb… I recall sitting on one of the park benches at Van Buer Plaza with Gracie admiring the view. Herb and Bill Feldman approached us and wished me well on my recovery from a heart attack. Herb, kiddingly I assumed, asked me to consider donating the money needed to put a fountain in the circle. He said if I did they might name the fountain after me. The point was that if a fountain was to be placed there it was going to have to come from private funding. I couldn’t help but notice a line item for a fountain in the Van Buer Plaza’s accelerated plans. Is there no honor?

Several fine speeches were given last night. I thought John Duerk gave the best speech. Succinct and powerful. Check it out (H/T Mark Charvat).

And here’s mine (same hat tip and thanks Mark):

March for Better Government

protestsignsThe City of DeKalb’s Citizen Community Enhancement Committee is requesting some $54,000 — roughly the same amount cut this year from the Social Services fund — to put the City’s new logo on signs around town. The CCEC would also like the Daily Chronicle’s advertisers to force the newspaper to reign in (or censor) its bloggers. Not so coincidentally many are marching on City Hall this afternoon and evening to let city leaders know they want better government than that.

From CityBarbs:

What: March and Rally for Good Government
When: Monday, November 9, 5:15-6 p.m.
Where: Assemble at Lincoln & First Street; march to the Municipal Building on South Fourth

More: Bring signs if you can, and a smile for the cameras. Place sign ideas in comments if you like, and help us go viral with the info.

There’s quite a few people upset with the goings on at 200 South Fourth Street these days. Alderman doing business with the City behind closed doors. Cutting social services and then giving the equivalent money to “community enhancement?” The list goes on and on and on. A Wall of Shame could easily be put together of the misdeeds at City Hall.

I’ll be marching…

Target loses property tax abatement

At the Thursday, Nov. 5, 2009, pre-city council meeting press conference, Rudy Espiritu announced that the Target Corporation’s property tax abatement will be rescinded due to the company not maintaining 500 jobs at its Park 88 logistics facility.

Revenues down $600 million – expenses up over $1.2 billion

Rep. Pritchard's Perspective on Illinois Politics

Rep. Pritchard's Perspective on Illinois Politics

Observations and comments about state government by State Representative Robert W. Pritchard.
November 2, 2009

The General Assembly’s fall Veto Session ended last week after considering lots of legislation but not any response to the state’s dire economic situation.  There were good sounding bills to “clean up” campaign financing and correct poorly written legislation passed this spring.  However when it came to funding college grants to students or the mountain of unpaid bills, all the leaders would allow is talk.  The Governor has authority to sell more short-term bonds and is crafting plans to “borrow” from other state funds that have any surplus.  The General Assembly is now in recess until January. (more…)

No public to hear

To make sense of this DeKalb County Online exclusive Video Report you must turn the volume all the way up.

More information on the DeKalb County Government FY2010 Budget:

Narrative (staff) for budget
Budget Workbook
Five Year Capital Plan

An Amendment for Reform

John BambenekJohn Bambenek is a political reformer and resident of Champaign, Illinois. He is the co-founder of the Illinois Citizens Coalition and one of the chief proponents of the Constitutional Convention vote that took place in 2008. He is the principal author of the Bambenek Put-Back Amendment and author of several books, including a book on the Illinois constitution. He is considered an expert on the Illinois Constitution.

The “Bambenek Put-Back Amendment” is an extensive package of reforms designed to decentralize the power from the current stranglehold of Springfield power brokers and empower local legislators to truly represent their districts.

The amendment is carefully thought through. The primary change it would bring would make the Legislature a unicameral (one chamber body) called the Senate made of 59 districts where three Senators represent a single district. The current system, with a House and Senate body, is in a constant state of gridlock and places far too much power in the hands of the respective leaders.

It returns to “bullet voting” (voters can give all three votes to one candidate or give up to three candidates one vote). Bullet voting was repealed in 1980 and many believe that began the process of centralization of power.

Other highlights of the Bambenek Put-Back Amendment:

  • Establishes term limits of four terms, maximum of eight years for every legislator.
  • It limits legislative leaders (Senate President, minority leader, committee chairs) to a maximum of two terms, or four years.
  • It reforms redistricting so that legislative maps are drawn on objective criteria instead of the current method where politicians pick their voters to ensure their reelection.
  • It equalizes ballot access and bans the practice of removing candidates from the ballot for spurious reasons.

The Bambenek Put-Back Amendment Petition is currently being circulated in Illinois. 500,000 signatures are required for the initiative to be placed on the ballot.

It is also designed to withstand legal challenges that are likely to be filed to keep the amendment from ever reaching the voters.

Change is desperately needed in the Prairie State and this amendment provides the tools to get the job done.

What recession?

DeKalb County's Sacred CowThere is a public hearing on the County FY2010 budget Wednesday, Nov. 4 at 7pm. It will be held in the East Conference Room of the Administration Building located at 110 E. Sycamore St. in Sycamore

The County’s fiscal year runs from Jan. 1, 2010, through Dec. 31, 2010. In 2010, according to projections, the County will bring in $24.4 million in revenues and spend $26.1 million.

Deputy County Administrator Gary Hanson has evidently discovered a pattern in government finance. According to published reports he told board members that a deficit means spending more than what’s taken in.

Thanks in large part to the windfall sales tax the County receives from the old County Farm property their rainy-day reserves are strong. Despite concerns expressed that the $1.7 million projected budget deficit may actually be much higher because of 1) the economy and 2) soaring pension obligations, County staff is recommending spending all budgeted expenditures, rolling the dice on projected revenues and covering any imbalance with the rainy day fund.

In addition the County is moving full steam ahead on capital expenditures that will require county taxpayers to go further in debt.

A 40,000 square foot expansion of the courthouse, which would nearly double its size, could cost between $10 million to $12 million. The debt bonds would be paid back through sales tax revenue from the County Farm property, which  generates about $1.2 million each year. The bonds would likely be issued in April 2010, construction would start in June of 2010, and the project should be completed by July 2011.

Bond salesmen are recommending the County take advantage of Build America Bonds (BABs) or Recovery Zone Economic Development Bonds which offer low interest rates. These programs were created under the federal stimulus package — to create jobs.

The county is eligible to issue just under $6 million in bonds because it declared itself a Recovery Zone and the balance of debt financing for the courthouse addition would come from BABs.

Voters have decided, on a least two referendum attempts, that a new County Jail is not a high enough priority to approve a tax increase to repay the bond debt. The County Board apparently feels the same way voters do.

The County Jail will wait until after the courthouse renovations are complete. At an estimated cost of around $30 million this major project is scheduled to begin construction in 2012 and be completed in 2014.

If all goes according to plan the jail project debt will be repaid with garbage. Lots of it. A pending agreement between the board and Waste Management would expand the land fill to take trash from other municipalities for a fee. Revenue projections from the arrangement indicate as much as $120 million over the next 30 years or so.

That figures out to be 120 million bags of other people’s garbage at a dollar a bag.

Plans are for the county to build a roundabout at the intersection of Annie Glidden and Rich roads. This project should come in at around $535,000 but the County is only responsible for $53,500 because the federal government will provide 90% of the costs. This intersection does not have the traffic or accidents required for either stop signs or traffic lights.

A parking lot at the health facility campus near that same intersection that was built just 10 years ago needs about $400,000 to repair it as a result of poor drainage when it was designed.