Higher Taxes Coming to Crest Hill

At the last work session concerning the City budget at the end of June, the budget as it stood after all the adjustments made during the weeks of hearings was presented.  Mayor Soliman then followed with questions of the council members regarding their opinions on various budget issues.  The final budget was approximately $300,000 in deficit even after every fix was made.

The Mayor kicked off the questions by asking each Council member individually if they would support increasing the utility tax on electricity and natural gas or the sales tax.  The City Administrator and the Mayor discussed the rates in surrounding communities to justify that Crest Hill is below average in taxes and should catch up.  The majority of Council members supported doubling the utility tax to bring in a little of $100,000 of additional revenue annually.  This will be enacted in the near future since the Mayor got the support he needed to raise it.  The Council was also open to raising the sales tax, but recognized that it would be years before any additional revenue would be seen, since the tax would need to be approved by the voters and they would need to do a long educational campaign before there would be any chance of getting it passed at referendum.

The Mayor then asked each member if they were comfortable with the budget being in deficit as it stood.  A number were comfortable with it either because they felt that it was the best that could be done under the current circumstances, felt that a great effort had been made and it was much better than it could have been, or recognized that a large part of the deficit is due to one time costs due to switching insurance.  Others were uncomfortable with it, but were challenged by the Mayor and council members who pointed out that there had already been weeks of discussion and that a budget had to get passed.  There seemed to be an attitude of this is the best that we could come up with so everyone should be comfortable with it.

The final question each alderman was asked was if they had any ideas to fix the budget.  A number of members advocated tightening on small expenses such as costs of conferences,  the purchasing coffee and disposable cups for City Hall, and the Mayor's gas and petty cash expenditures.  These items would not make a huge dent in the budget, but were looked at as every penny counts and making sure the Council was feeling some of the pain as well as the city staff.  Alderman Sternisha spoke on some of the suggestions he has made to the Council early on in the hearings regarding freezing salaries and not hiring more employees, but he did not have the whole list because the Council had not been expecting this line of questioning at this particular budget hearing.  Alderman Convery for some reason decided to attack Sternihsa's suggestion of not hiring more employees and kept asking him to be specific as to who not to hire.  Convery did not seem to grasp the idea that not hiring any additional employees did not mean to firing recently hired employees, but instead meant that from that point forward not hiring any more.  The Treasurer also spoke on some of his ideas for furlough days for city employees and creating an annual business license as opposed to the current license that is good forever.  He was pointing out that Menard's paid $25 for a business license that is good forever, while many households pay more than that each year just to get city vehicle stickers.  The City Clerk got quite upset at this since her office would have to issue the permits and she had not been consulted.

The Mayor gave everyone an insight into his thinking just in the order of the questions and how he presented them.  His first thought was to raise taxes, then to gauge comfort with being in deficit, and lastly to looking for other solutions.  This city needs leadership who put finding solutions and alternatives first and put raising taxes as last resort.  Unfortunately, Mayor Soliman looks to our pocketbooks first and makes it clear that higher taxes come before all else.

Soliman Looks to Appoint Wilkerson as Chief

In tonight's City Council work session, Mayor Soliman announced his intention to appoint Dwayne Wilkerson as Police Chief.  Mayor Soliman listed among his reasons, the excellent job Acting Chief Wilkerson has done over the past year, his desire to promote from within when possible, and the years of service that Acting Chief Wilkerson has already given to the city.  The City Attorney is reviewing a proposed employment contract, the City Council will be given a chance to speak further with Acting Chief Wilkerson, and the appointment will be on the June 15th agenda.  

This appointment will allow the city's police department to continue to function under a proven leader.  It will also finally end the long vacancy that has existed in the office of Chief of Police.  Mayor Soliman also expressed his belief that by appointing someone already in the department the message is being sent that any officer can work hard and be promoted within this city.  This is a valuable message and will help to build morale and hopefully also attract officers who are looking for stability and a career in Crest Hill.  Mayor Soliman also spoke of the difficulties that have been faced by communities bringing in outsiders who often have trouble dealing with the culture of a department with which they are not familiar.

New Beginnings

Crest Hill bills itself as the "City of New Beginnings" and tonight the City Council did its best to live up to that slogan.  The work session held tonight was long and contained a great deal discussion, as well as friendly ribbing.  The Council used it as a chance to discuss both immediate changes that are part of the new administration as well as longer range ideas.  It was a meeting that really looked at what the city is facing and tried to address those issues as well as continue to set a tone for how things will operate from now on.

The change in the feel of the meeting was what most stood out to me.  All Council members voiced their thoughts without attacking each other or taking sides.  In fact at times it was hard to figure out exactly where people stood on issues.  That is healthy though because it was a result of their asking questions and putting forth ideas of future consideration.  I am happy to see Council members not making up their minds at work sessions.  Where Mayor Soliman turned to myself and the other citizen in the audience and asked our opinions, I must admit I was absolutely shocked.  Few mayors would take such a step, but it definitely showed Mayor Soliman's commitment to inclusiveness.  I do not know if he will be able to do this every time, but hopefully it is a practice that will continue at least of issues of particular importance.  

The issues discussed were of great importance tonight and deserve to be addressed in depth individually.  Some of the items of discussion were a possible sales tax increase, appointment of a Police Chief, other mayoral appointments, city signs, City Hall modifications, and the long range plans for Public Works and City Hall. 

A New Day in Crest Hill

The voters of Crest Hill have spoken today and have made it clear that the era of unethical and scandalous government is over.  Mayor Churnovic was defeated in his bid for re-election and the City Council candidates he supported and funded were defeated as well.  This is a good day for Crest Hill.  Four years ago many people were happy to see change, but few realized that change was not always for the better.  Today though we have seen real change and that change is for the better.

Our city will be led by a Ray Soliman, a man who has spent years pushing for open government and calling on the city to follow the proper procedures.  I feel strongly that Mayor Soliman will lead the city with a strong sense of ethics and care for citizens.  I am sure I will disagree with some of his decisions and positions, but I look forward to having a Mayor who will treat all citizens with fairness.

Aldermen Dyke, Lelis, and Convery were re-elected.  Lelis and Convery have been very outspoken on pushing for city government to be more responsive and for the Council and Mayor to work together to improve Crest Hill.  They have also both been very strong advocates for the interests of their wards.  Alderman Dyke is a very level-headed and practical member of the Council.  He did not take on the corruption of the past four years head on, but he has always conducted himself independently of the disputes among other members of the Council.  These three aldermen will serve the city well for the next four years.

The third ward, where I live, elected a new alderman, Neal Sternisha.  I have had the chance to get to know Neal and talk with him on many occasions and look forward to having him as my alderman and also look forward to what he will bring to the Council as a whole.  In particular his professional background in the water and wastewater fields is of particular value to a city facing massive capital outlays to improve our own systems in those areas.  In addition, he is someone who has spoken out for the need for more ethical government in Crest Hill and stood up to a brutal campaign financed by Nick Churnovic.

This is truly a bright new day in Crest Hill.  I hope that all of those who won election tonight remember that it was the desire of the people of Crest Hill for a more ethical and open government that got them elected.  I will be looking forward to seeing a better government, but also will be looking to see Crest Hill move forward and continue to develop to its full potential.

City Awards Garbage Contract Without Bids

Last night the City Council voted to award a five year contract to Allied Waste for garbage, recycling and yard waste collection.  Bids from other companies were not sought before this contract for in excess of $5,000,000 was awarded.  I have written previously regarding why bidding makes good fiscal sense and is the financially responsible thing to do (http://cresthill-illinois.blogspot.com/2008/12/trashing-principles-of-good-government.html).  I have also written about the Committee to Re-Elect the Mayor accepting a large donation from Allied Waste and the ethical issues that poses (http://cresthill-illinois.blogspot.com/2008/12/mayoral-ethics-part-ii.html).  

Not only did Alderpersons Vershay, Oberlin, Brandolino, Dyke, and Inman vote as if they believed that bidding had no sound purpose and that there was nothing wrong with those seeking city contracts giving political contributions; they actually voiced such opinions.  It was shocking to hear such statements expressed by those who have been entrusted by the public to act in the best interest of the city and its citizens.  

Alderwoman Oberlin stated that to go out to bid would be like gambling that we have no way of knowing that we would get a better price by doing so.  She also stated that it would be irresponsible to gamble like that.  In fact, we would not be gambling as we know the outcomes so long as we can assume that Allied Waste is run by rational people seeking to make a profit.  We would get a price at least as good if not better by going out to bid because the addition of competition would drive prices down.  My previous post goes into this in greater detail.  The truth though is that there is nothing irresponsible about going out to bid, there is in fact something very irresponsible about not seeking the lowest cost for the citizens of Crest Hill.

Alderman Inman commented that there was no connection between the Mayor, the contributions by Allied Waste to his campaign, and this contract.  Well, the connection between the Mayor and the contributions is clear and direct.  It is also apparent that the Mayor spoke in work sessions supporting awarding the contract without bidding.  He also worked to negotiate this contract.  Alderman Inman may think that because the fuel surcharge was negotiated out, the Mayor did a good job and the city got a great deal.  Well, the truth is that in any negotiation the terms are on the table and to have negotiated out of new language that few other cities have ever agreed to is not a huge victory.  And even if t had been an amazing negotiation, considering only one company to the exclusion of all others is irresponsible.

Two of the men running for Mayor spoke up in opposition to awarding this large contract without going out for bid and should be commended for their efforts.  Alderman Soliman spoke to the point that I believe is central which is that any price given in these negotiations should be able to have submitted as a bid, if not an even lower price.  Mr. Semplinski brought up the very insightful point that if Allied Waste can afford to hold the price for the next year the same as it was this year, they must have been able to make a pretty good profit this year and probably had more room to offer a lower price.  I wish the incumbent Mayor had the wisdom to put forth such good thoughts and to encourage those who follow his lead to have done the right thing.

Trashing the Principles of Good Government

Public bodies typically put contracts for goods and services out to bid for a number of reasons.  The primary reason is to obtain the best price possible through competition.  Additional reasons relate to fairness to all businesses, eliminating discrimination, and reducing corruption.

The best price for a good or service can be obtained through competition, which is the basis of the bidding process.  As an example lets pretend that I am going to buy your car.  In one case, I ask you to tell me how much you will sell your car to me for and tell you that I want your car and will not buy a car from anyone else or even find out the price of a similar car from anyone else.  In the second case, I ask you how much you will sell your car to be for ad tell you that I will be getting prices from 5 other people with nearly identical cars and will buy the one with the lowest price.  In which case will you give me the lowest price?  I think the clear answer is that the lowest price will be given in the second case where there is competition.  Of course, some people may ask for the same amount in both cases, but it would seem pretty illogical for anyone to offer a lower price in the first case.

Well, most of the City Council has decided that Allied Waste is illogical and will offer the city the best price on garbage service if they are allowed to propose a 5 year contract without having to bid against other companies.  Instead of finding out what other companies would charge to provide service they have decided to seek a proposal from one company only.  Ray Soliman was that only Council member to speak up against this plan.  The rest of the Council and the Mayor decided that financial responsibility and good government are not of importance.

It is possible that Allied Waste will provide the best service at the lowest price.  However, we will never know if that is the case unless we allow all companies interested in providing garbage service to bid for the contract.  What is the Council's reason to oppose bidding?  Their publicly stated reason is that they believe that Allied Waste will bid a higher price if faced with competition than they would offer if only their proposal in considered.  That seems to run counter to logic, but we all know that there are members of this Council who would never let logic stop them from violating every principle of good government that they can violate.  As for the members who normally support the principles of good government and fiscal responsibility, I can only hope that they will realize their error before approving a contract without bids.  Ray Soliman was the lone voice on the right side of the issue at the work session on November 21, but I will be looking for others to join him when the issue comes up in a Council meeting.

Another item to be aware of besides the decision not to put the contract out to bid, is that the Council is looking for Allied Waste to hold rates flat for the first two years and defer the increases until the third, fourth, and fifth year of the contract.  I can assure you that the increases in the last three years of the contract will be considerable in order to make up for the lower rates the first two years.  On top of this they are looking to allow Allied Waste to add a fuel surcharge if fuel prices go above a set price.  The residents will be forced to help Allied Waste cover their fuel costs if diesel prices go up again, but we will not have our garbage rates go down if diesel prices fall.  The City Council sees no problem with this one sided proposal. 

The only possible positive is that they are looking to provide wheeled containers with lids to all the homes for trash and recyclables.  There some definite benefits to this idea and I know a number of people have been asking for this.  Of course there is no reason why this could not have been included in a request for bids from other companies.