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.

Police Looking to Install GPS Tracking

At this past City Council meeting, Chief Wilkerson requested funds to install GPS trackers in the squad cars and spoke about Canadian National installing them on their trains as well.  The purpose would be so that the dispatchers could see the locations of all the squad cars when sending officers out to respond to incidents.  Also they would be able to know if a train was blocking on of the at-grade crossings or would be by the time a squad car needed to get through.  This would allow them to let the officers know if they needed to take an alternative route.  This is a great use of technology and helps to offset effects of additional trains.  There is also the benefit of knowing where officers are if they need assistance, but cannot radio their location to the dispatcher.

There are other uses for this technology though that the police department may not be as excited about.  This technology could create a record of where the officers have patrolled on each shift, including how long they spent at City Hall, sitting in parking lots talking to each other, and other less productive activities.  It could also be used to see where they actually patrol and determine if they are where they are most needed as well as if they are neglecting some areas.  This would be a valuable tool for the Chief and any supervisors in the department to use, but I can imagine that the officers would not like that sort of scrutiny and oversight.  Although based on some of the stories I have heard about the department, it might be warranted.

I would be concerned about the liability issues it could raise though.  I envision lawyers walking into court and now having evidence that no officers had patrolled an area all night despite known problems in that area.  Or were all sitting at city hall and were slow to respond to a call across town.  I am not saying that such arguments might not be justified, I am just concerned about the potential liability this city would have if practices were not improved.  Hopefully, this technology can be put to good use to improve our current practices and actually become more effective than would have otherwise been possible.  Then the liability issues would be of far less concern and we would all benefit from better policing.

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.

TIF District Follow-Up

The work session tonight did not shed much additional light on the proposed TIF district.  The Mayor introduced the idea of TIF districts by saying that he has seen them used by surrounding communities and that there are consultants who are willing to meet with the city without charge to discuss the matter.  No indication was given of what areas were being considered for inclusion in a TIF district.  A work session is planned for next month when consultants will come and discuss TIF districts in greater detail.  The superintendents of both elementary school districts were invited to tonight's meeting and have asked to continue to be involved in all discussions.  This is an important step since TIF districts can have significant impacts upon the schools.  One citizen stood up to voice his opposition to TIF districts that are used improperly because of the tax impacts that they can have on the rest of the city.  This was a very healthy start to the discussions of a TIF district even if no specifics were offered.  I hope that the Council keeps the schools as well as the citizens involved and do not just listen to the consultants who have a financial interest in creating TIF districts.  As more information becomes available, I will share it as well as giving my analysis of any proposals.

TIF District Under Consideration

The City Council will be discussing Tax Increment Financing (TIF) districts at tonight's work session.  TIF districts are a tool that has been used by cities to promote economic development of depressed areas.  Such districts are not without controversy though because the benefits they provide come at a cost to other areas and taxing bodies.

A TIF district is a defined area encompassing all the properties within the boundaries that are created for it.  The amount of property taxes received by each of the taxing bodies is frozen for 23 years.  Over those years as the property values increase, the taxes paid also increase; but the increased amount is paid to the city and goes to a designated TIF fund.  That increased amount is the tax increment.  This money is then used to pay for improvements within the TIF district that are meant to attract new development to the TIF district.  These improvements can be anything from streetscaping to parking garages to even providing incentives directly to businesses.  The funds are not supposed to pay for ordinary operating expenses such as filling potholes, plowing streets, or providing police protection.  The area encompassed within a TIF district are meant to be properties that are currently blighted and are not reasonably expected to be able to be improved otherwise.

Many cities have used TIF districts to create new economic development and have seen them as very useful tools.  They feel that without the TIF districts redevelopment of blighted areas would not have been possible.  TIF districts are able to provide large amounts of money for redevelopment especially in cases where the improvements are put in early on using borrowed money and then paid back over the 23 years as the increased tax increment dollars are collected.  This of course exposes the city to the risk that the increase is not sufficient to pay back the debt.

TIF districts are opposed by some because of the effect they can have on other taxing bodies, their long life, and their misuse in some cities.  The amount that other taxing bodies receive in property taxes from a TIF district are frozen for 23 years.  The reasoning behind this is that these are blighted properties that would not otherwise have increased in value if not for the improvements.  However, this is a false notion because one would be hard pressed to find any property in this area, even the most blighted, that is today paying less in taxes than they were in 1986.  A rising tide lifts all boats.  This means that the schools, parks, and fire districts are losing out on revenue they otherwise would have collected even if no new development had happened. 

TIF districts can also create new costs for other taxing bodies that did not previously exist.  If a TIF district is developed to include condos and other residential uses in an area that previously had none there are no more students to be educated, but no additional funds to pay for that education.  The rest of the taxpayers outside of the TIF district would have to pick up that cost.  The same would be true of increased need for policing if the TIF contained additional commercial uses such as bars, restaurants, and shopping.  Many proponents of TIF districts claim that they do not increase anyone's taxes.  However, the additional costs created that cannot be paid using TIF funds must be paid for by someone and that someone will be all the taxpayers outside of the TIF district.

The third concern raised is the misuse of TIF districts.  They are meant for blighted and depressed areas that would not otherwise be able to be redeveloped into a higher, better use.  There are certainly cities that have found areas that this applies to.  However, others have taken areas that are already improving and used TIF districts to speed the process along or to be able to provide even greater economic incentives to developers.  TIF districts were not meant to be used as a common economic development tool in all situations, they are instead meant for specific circumstances.  This is a concern because of the costs that TIF districts can impose upon other taxing bodies and on the taxpayers.  That cost may be worthwhile if it leads to development that would not otherwise be possible, but it would be a high price to pay for development that could have been brought about by other means.

I have been involved in the creation and administration of TIF districts in other cities and have seen the potential benefits they offer as well as the problems they create.  Before the city creates on, it is important that we all are educated and informed.  This means that we need to know exactly what properties will be included, what the money will be spent on, if financial incentives are being given to businesses, and what the impact on the schools and other taxing bodies will be.  Following tonight's work session, I will post details of what is being proposed by the city as well as my own analysis of the information presented.

Mayoral Ethics, Part II

A few months ago it was revealed that the Committee to Re-Elect Mayor Nick Churnovic had accepted donations from two engineering firms that were actively seeking to do business with the City at that time.  A portion of the City Council at that time spoke out against his actions and publicly stated that they did not want to see pay-to-play politics become the way Crest Hill is run.  

Well, the Mayor has now reaffirmed his belief that pay-to-play is the means by which he is governing the City of Crest Hill.  His re-election committee has accepted money from Allied Waste.  This is the same company that is looking to get a five year garbage services contract from the City without bidding.  Mayor Churnovic expressed his strong support that the Council not go out for bid but instead consider only proposals from Allied Waste.  The reason for this is now very clear.

Apparently, there is no need to bid for contracts with the City if you contribute to the Mayor's re-election campaign.  This is a clear abuse of his office as Mayor and a betrayal of the public trust.  How many other instances are there of the Mayor accepting donations from those either doing business with or seeking to do business with the City?  After seeing how the State has been hurt by this type of corruption, do we really want this for Crest Hill?  

The time has come to demand better from our politicians.  We do not need a Mayor who trades city contracts for campaign contributions any more than we need a Governor who sells a Senate seat for campaign contributions.  Why would we want the shame of pay-to-play politics on a local level?  The Mayor has shown repeatedly that he desires to run the city in this manner though.  The voters need to send a clear message come April by voting to replace the Mayor and any other official that supports his way of running this city.