Thursday, July 29, 2010
Peru Alderman suggests considering sales tax hike to fund municipal pool
Alderman Jamey Mertel (1st Ward) encouraged his counterparts in the city council to consider raising the city sales tax in order to fund any future municipal pool project. This rather bold move by Mertel took more than a few of us by surprise. Jack O'Beirnes mouth dropped open in complete confusion again. Even more so than usual. Of course none of the other aldermen commented on the idea for fear of being linked in any way to such a blasphemous suggestion. Mayor Harl commented that all ideas should be considered and he repeated his hopes of allowing for an advisory referendum on the November Ballot with a question asking Peru voters if they want to proceed with planning and paying for a new public swimming pool. I give Mertel credit for stepping up with what will certainly be a very controversial suggestion. He seems to be working without a safety net and I suspect he will get a serious scolding from the other aldermen for deviating from their plan of forcing the Mayor to make all the tough choices. I do not see Mertel making that suggestion if Dave Potthoff were in the room last night. Potthoff arrived late for the meeting after Mertel had already stunned the crowd. We must remember that sales tax in Peru has always been the "Golden Goose" or "Sacred Cow" that enabled "The Don" to always play fast and loose with city finances. Those sales tax bucks (and the Electric Light Fund) allowed Baker to subsidize or prop up any and all other city funds that were failing to pay for themselves. Those bucks allowed for a bloated "full time" employee payroll and an even more bloated "part-time" patronage summer program. Those bucks provided the under-funding of the Peru Library for years. Those bucks allowed Baker to spend virtually any amount on any thing (Peru Municipal Building) at any time. And as long as those sales tax bucks rolled in Baker could abate taxes and be hailed as The Messiah. Those days and those bucks are long gone and at present we have a sluggish economy and lagging sales tax reciepts in Peru. How will our city sales tax rate compare with surrounding communities and how will area consumers react to an increase in Peru's sales tax? Is Alderman Mertel threatening to kill the Golden Goose? I recall a bit of a backlash when the rate was raised to fund Parkside School. I'm all for a healthy debate in open meeting about this one folks. I think we may see some of the alliances that banded together against Mayor Harl will become a bit strained over this issue. This is good stuff!
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31 comments:
I also give credit to Alderman Mertel.
I am also STUNNED because until now the Finance Committee members have been reluctant to discuss any tax or utility rate hike.
This discussion will open the eyes and ears of residents and bloggers “in denial” of the Financial condition of Peru.
I personally welcome the discussion of how to pay for the following:
Pool - Road Repair – Sewer Separation - Intersection Stop Lights – Park Improvements
I hope this is a factual discussion of what residents want and how residents want to pay for all these improvements.
Let the discussion begin.
Jim from the 1st Ward
I do not agree with this idea. Our sales tax rate is already high. Peru must mantina a favorable environment for commerce, otherwise business will leave the city.
Raising electric rates, raising sewer rates, raising water rates... now raising sales tax rates. It will not be long before business decides to look to greener pastures.
The city needs to take care of what is necessary and reduce expenses on what is not.
Brian, Replacing the pool is a necessary expense for the city. We not only have to cater to businesses, we should be attracting new families to the area. Our schools are top notch, our parks (sans Rotatry Park) are great, and our library has lots to offer families. We need a public pool. A minimal raise in the local sales tax is a viable solution. Being a local consumer, a quarter per cent would be painless for me.
Brian and Lois,
To what greener pastures will businesses run because of the sales tax rate in Peru? LaSalle or Ottawa, where the total rate is identical to Peru's 7.0 percent? Or will they go to Bloomington (7.75), Normal, (7.75), Champaign (8.75), Carbondale( 8.25), East Peoria (8.0), Joliet (8.25), DeKalb (8.0), Moline (7.5), Aurora (8.25) or Oswego (7.75)? Let's not even talk about the City of Chicago (9.75).
All of these towns have two things in common. First, their sales tax rates are all higher than the relatively low rate we all are fortunate to have in Peru. Second, they are all places people go to shop. Most regions have a location where the retail and restaurants and other business thrives (they tend to locate together as part of a master plan, which Peru always had), and Peru created a business climate where that happens right here in the Illinois Valley.
The sad thing is that people actually get upset with Peru for this! HA! Think of the jobs that have been produced in Peru, along with the conveniences and choices for shopping. And yes, everyone in the Illinois Valley pays a very low sales tax rate when they shop in Peru.
Brian I agree that drastically increasing taxes, fees and other things can create a negative business climate. But you cannot make that as a general blanket statement because there is another thing we enjoy in Peru and that is low utility rates. Would you rather pay your bill to ComEd or IP? Our rates are much lower. Just because they are going up does not mean they are higher than the neighbors.
The fact is the City of Peru is going to have to raise some taxes or rates somewhere along the line, while hopfully also reducing expenses in the process. So is everyone else! But in the end, it does not mean our rates are going to be higher.
Lois, you can criticize Don Baker for so many things, that is your right. But seriously, and I am not defending him, but he is undeniably the one that created the circumstances to have the business we have in town. He did it right for decades, while everyone else was asleep at the wheel. This was a result of leadership. I am not saying he did everything right and kosher, but the final results speak for themselves. Just as you criticize others on here for bashing Harl while you defend him, you have to at some point stop criticizing the previous administration for their faults, without at least occasionally ackowleging that there is not one other town in the state of Illinois with under 10,000 residents that has the businesses and business climate we have had in Peru.
I am not a fan or friend of Mayor Baker, but his legacy of four decades of leadership will be intact when it is all said and done. A few bitter bloggers will never change that. Mr. Harl's legacy will be based on whether or not he screws it up. At the end of the day, real leaders cannot blame their predecessors for what they could not overcome.
One last thing, Lois. We do not have "lagging sales tax receipts in Peru." They have been proportionately down like tax receipts anywhere else. The receipts are back to increasing right along with the economy. Through this recession, we have actually added businesses, where most communities have lost.
~ Still Positive in Peru
Welcome Jim from the 1st - You are obviously well informed and aware that a city's needs and wants come with a hefty cost.
Brian - You paint with a pretty broad brush. I agree that we must remain business and development "friendly". I also understand that our elected officials have an obligation to provide a modern and dependable infrastructure as well as quality recreational opportunities for our citizens. The decision makers in the previous administration understood very well the advantages of delaying or avoiding altogether these high dollar projects. Unfortunately, the hens have come home to roost. We are being told that there has been "belt tightening" but can you really quantify that savings? And is it realistic to believe our city officials can tighten that belt enough to fund any major improvement project? I believe we need to be informed in a "brutally honest fashion" just exactly what this city's financial position is and how each and every fund is performing. We should not take from one fund to subsidize a deficit in another fund and consider that good management. That was SOP in the past. It's great to be able to say we have low rates for city services, but how long can you continue to lose money providing those services?
9:01AM
You wrote a good article but you need to read carefully who writes each post so that you can direct your comments to them. I do criticize past decisions of the past administration but for different reasons
I just rejected 2 comments written in because of the misdirected animosity toward me not because of what I have written about policy but only on what THEY THINK I believe about people in this city government. I will continue to do this, so make you decision as to whether you wish to have your comments made public, it is your choice. Neither Steve or I are holders of any elected office and we are making the choice to put our opinions publicly on the blog and we will back up what we write, so whoever you are, those our my conditions for posting on The Peru Town Forum especially when you do it as anonymous.
To Still Positive - Thank you for an excellent comment. You are absolutely correct in your description of the contributions of Don Baker in promoting retail development in Peru. He did so extremely well and I have acknowledged that fact. You are also correct when you say he did not do everything right and kosher. For that I will continue to be outspoken. For those reasons I see his legacy a bit more tarnished than you. As for Peru's retail sales, I stand by my comment that they are "lagging" as are many other communiites as you pointed out. And yes they are improving somewhat.
Thank you so very for providing the sales tax rates of other communiites and please continue to comment as you are certainly informed and very sharp.
Lois and Steve, after reading the above eight comments I realized that this is what this web site should be and continue to be:healthy comments and suggestions. Lois continue to delete anything that you feel is not constructive criticism or healthy debate. Thank you.
9:01 AM
"they tend to locate together as part of a master plan, which Peru always had)"
I am fascinated by this comment in particular so I need to ask if you are referring to the city as a whole or are you speaking of the development on the property north of Shooting Park Road which consists mainly of big box retail businesses?
The only local businesses I can think would be several banks and several non retail along Progress Blvd.
I do believe the rest of Peru was not and is not presently part of any "master plan" These are the locations that were left behind in spite of the so called Peru downtown redevelopment. We have developed very little in the way of recreational (beside baseball) or cultural events. Notice I am not including the Fourth of July which is a very debatable topic which we are not allowed to challenge. But all that is a topic for another day, let's go back to the master plan and an explanation as to how you saw it develop.
Still Positive in Peru / Brian / Steve / Lois
What a great discussion the Blog is enjoying.
I agree residents of Peru have enjoyed a low Tax rate and also low Electric rates.
I would like residents to be polled for their opinion on what improvements they want in 2011.
Would they vote for a Pool / Road repair / Sewer Separation / Park improvements / Ect.
How do residents want to be billed for improvements?
Sales tax / Water bill / Electric bill / Real Estate tax ?
I hope City Officials realize Peru residents are ready for the direct and honest question.
WHAT DO YOU WANT AND HOW WOULD YOU LIKE TO PAY?
(Cash or check, no more borrowing please)
Peru needs a plan!
Steve - thank you for your very kind words. I rarely comment here, but truly appreciate your objectivity when recognizing Mayor Baker's contributions, even with his shortfalls. I am sure you know more details than I do about that. I just don't like the constant bashing of the previous administration from some people because it does nothing to solve a problem and everything to make excuses. Having said that, constantly bashing the current administration doesn't do much good either! At some point, we all have to remember that we are all on the same team. I just wish people could acknowledge the good that has ben done, recognize that it was not done perfectly, and build upon and move forward from there. Thank you again.
Lois - Steve probably knows far more history, but a very big reason there IS a Peru north of Shooting Park Road is because Baker and past city leaders planned ahead and built infrastructure along 251 and out to the I-80 interchange. In the process, his vision was low property taxes (which you surely appreciate if you are a Peru resident or a business owner) and aggressive recruiting of businesses both locally and all over the globe by having a plan and understanding how businesses run. The man worked full time in a part time job. He was both mayor and economic development director. I wasn't even here then, but everyone who knows Peru's history knows this.
As evidence of this success I believe, to their credit, the current mayor and council are now attempting to do this again on Plank Road. Do you think that is a good idea? If so, then you also agree with what was done in the past so you can have access to a shopping mall, a movie theater, hotels, dozens of restaurants, Sherman's, car dealers, Menard's, Home Depot, and local businesses too numerous to mention. Oglseby, Spring Valley, LaSalle and Mendota would do anything to get just ONE of these! I'm not referring to a "master plan" with cultural things and all of that; perhaps that will come from Mayor Harl.
Again, name one town of our size that has half of the local business and convenience we enjoy. Is it perfect? No. Is this a cultural mecca? Heck no. Does our downtown suck? Well, kind of, come to think of it.
But again, we have strong local businesses, some homes are actually being built, we have a well ran school district with a new junior high and there is a lot of potential for growth here. Taxes are not bad. Streets and insfrastructure
need to be addressed.
Whether Peru had what you would consider a "master plan" or not, not one business located here by accident. This is where we are today. In your statement, you said, "I do believe the rest of Peru was not and is not presently part of any 'master plan.'" I could not agree more with the second part of your statement.
So, pushing toward two years under new leaderhip, you should be asking the mayor and the council, "Where is our master plan? What is our vision? Where are we going to be in 1, 5 and 10 years?" If you want to see your blog take off, start focusing on those types of questions, rather than what the previous mayor did or didn't do, and which alderman is not playing nice with the mayor. That nonsense is called politics, and it happens everywhere.
Let's focus on the future. Thank you!
~ Positive in Peru
A very nice written article. Too bad Lois once again is getting off topic by attacking anonymus post. Back to the subject, as 9:01 stated, most retail shopping hubs have already taken advantage of increased sales tax revenue. It makes more sense. Low utility rates and property taxes encourage growth for both retail and manufacturing. Does anyone truly believe Best Buy would chose Ottawa instead of Peru over a .125 sales tax issue? I was very involved in the school referendum which if I remember correctly pass 80%-20%. As Steve knowns a 60/40 victory is a landslide. Does anyone know where the extra 1/2% goes to in LaSalle and Ottawa? I bet it goes to the city and not a school. I for one do not need or want or will vote for another $200-$300 property tax increase for a new pool. I'll pay the extra quarter at the cash register. Steve, you must not know Jamey very well because I seriously doubt he would swallow his tongue because somebody else was in the room.
1:54 ROADS ROADS, ROADS. THEN SEWER SEPERATION, BEFORE ANYMORE BASEBALL DIAMONDS OR SWIMMING POOLS, OR A BIKE PATH. THANK YOU
2:31PM
Perhaps I have been attending too many finance committee meetings, which can be rather discouraging as we have become so limited in what we can do at the present time. Rather anyone likes to consider the fact that our debt is huge compared to cities of a similar size, it remains a constant and is a controlling factor on what we can do as a city. So at this time, it seems living within our means is going to be the norm for some time and we will have to learn to spend the money we have wisely until better times give us more to work with.
I agree we are very fortunate to have the number and variety of retail outlets available to us
BTW 2:56PM, I did not attack anyone so I don't know where you are coming from, please make your posts on topic, otherwise you diminish the value of what you are posting or else validate your comments with your name as I do.
Very Good Discussion! My hard spot with the sales tax increase to fund a new pool is that we have other more important issues to address. Jumping into the deep end without a plan would not be productive. (Pun intended).
I agree that a public pool is good for the city. But I also believe that a sales tax increase at this point in time would harm the area economy. From my personal point of view - it would not have any impact on my spending. But - one must remember that the retail outlets in Peru attract customers from all over LaSalle and Bureau Counties. Many of these people are not as well off as most Peru residents.
We have many established retail outlets in Peru. It would be difficult for them to relocate. I don't believe this would happen over a quarter percent sales tax increase. After all, the customer pays that. But over a period of time other cities may realize that having a lower sales tax than Peru may attract customers. Business will follow those customers. We need to plan for 5, 10, and 20 years from now.
I don't see a new pool in the cards for the next few years. Any amount of savings generated by careful budgeting will not pay for a pool. If we, as a City, believe that a pool is necessary then we will need to borrow to pay for it. But, as I'm sure everyone knows, you need to have your financial house in order before asking for a loan. Like the old joke... the only way to get a loan is to prove you don't need one. Everyday that becomes more true.
Lois, 2:56 is spot on. Positive wrote an 8 paragraph, inteligent post and you pick on 1/2 a sentence. Do you realize you don't have to respond to EVERY post? Stevey boy, I can't believe you actually wrote a possitive post on an Alderman. Can't wait to see how he grades out. I talked to Alderman Mertel and the reason it was silent is because nobody knew what he was going to say. No backroom deals. No one-on-one discussions. Just open discussion. One thing you forgot to report was he also proposed making it .25% and using the other $500,000.00 per year for roads, new Police Station, or anything else that needs attention. This is a huge proposal which could shape the city of Peru for decades to come. As you would say, It's Time. Too bad the mayor never thought about it. Seems to me the wrong person is in charge.
Mr. Insamnia
BTW, nice attempt to Dave P. into the equation. You know your statement is not true.
1:09AM
Just FYI I questioned, I did Not Attack, please learn to discern the difference. The poster was able to make that distinction, sure don't understand why you could not. I could easily have a good conversation with the person who posted but not with you because you are always looking for a word to pick on.
There is a lot I could comment on what you have written, but I don't see the point. You are entitled to your opinion and we (Steve and I) are entitled to ours. Leave it go at that.
And many of your comments are borderline demeaning and that is why you write the way you do.
Insomnia - Maybe there was no discussion because they were shocked that one of there own would suggest a tax increase. They, and especially Alderman Potthoff, have been dead set against any type of tax increase. I'm only responding to your post and not to Alderman Mertel's suggestion because you seem bitter to Lois and Steve.
To 2:56 a.m. - I don't know what you are referring to when you asked about what LaSalle or Ottawa did with the extra 1/2%. The sales tax increase to fund Parkside was exclusive to Peru retailers. It was not a county issue. I'm glad you were involved with the school referendum and I hope you come out in support of whatever you think is good for Peru. As for your comment about how well I know Alderman Mertel...I have observed Mertel and the other aldermen in open meeting for a little more than six years. My opinions are based on what I have seen in terms of "Action" and or "In-action on issues that have actually been discussed openly. As a sidenote, I can tell you that no alderman of those currently serving has ever made an effort to make me feel as though I am welcome at any meeting I have ever attended with the exception of Ron Wren. I know what I've seen from Mertel and it has been nothing even remotely close to what I witnessed from him last Wednesday. I say that respectfully because his suggestion was a legitimate one that should be considered and I appreciate him bringing it up.
I suspect Dave Potthoff may not have been so appreciative. But, maybe he is on board with it. Time will tell.
Mr. Insania - I call em' like I see em' and Mertel made a constructive suggestion. Kudos to him! As for why the other aldermen were speechless. It doesn't matter if they knew or didn't know it was comming. The fact is they either could not or would not contribute to the discussion. Mertel has decided to deviate from the others in an effort to separate himself from the ever increasing public perception of a city council mired in obstructionism. I give him credit because it's the smart move. He knows he needs to get out in front on some of these issues or he is just another chair up there. Good for him!
You seem a little overly excited about the prospect of a tax increase in your community and I really think you should curb your enthusiasm until the Treasurer can present us with some numbers. So don't start re-surfacing every street in Peru or breaking ground on that new Police Station or new Firehouse in north Peru just yet.
Regarding your comment about who's in charge. If you have been paying attention you know that Harl and Hylla have been pressing the aldermen (Finance Committee) for more than a year to accept and understand our current financial situation and to come up with possible workable funding solutions. To his credit Alderman Mertel has risen to the occasion. By the way....Alderman Potthoff is in the equation because in my opinion he and Aldermen Mertel are the only two sharp knives in that council drawer and if they are no longer working together against Harl it could lead to quite a political free for all. What is really laughable about your comment is the un-deniable fact that if Harl had suggested a sales tax increase you would have lost even more sleep due to your delerious outrage at such a suggestion by the Mayor. You're predictable.
To PIP - You are dead on target when you use politics and nonsense in the same sentence as it is often just that.
However, I have to admit to you that I believe the politics of personalities and the nonsense of trying to sort out who will support or work against who on a particular issue and why is often the most interesting aspect for me. I think human nature is something you have to understand in order to persuade someone that your position is the correct one. It sometimes is pure "politics" and if you want to be successful and promote your agenda you learn to play the game such as it is. If you believe your ideas will benefit your community you are never wrong.
Take a minute and read Brian Fosters comment on "LOST" Local Option Sales Tax and see how increasing sales tax can hurt the business climate in Illinois according to the Illinois Policy Institute.
Link to the page is on the upper left column.
To all who have posted VERY CONSTRUCTIVE AND KNOWLEDGEABLE INFORMATION AND THOUGHTS:
I have been saying for months we need a MASTER PLAN BY THIS MAYOR for the city of Peru. without a plan there are NO JOBS, NO BUSINESSES, NO MONEY, NO RAISING TAXES , NO RAISED FEES, in fact businesses will start to leave and move elsewhere if they are messed with .
Therefore No Pool, No bike paths, No, No, No.
Bare Essentials folks is all we can accomplish. WE MUST CONTROL SPENDING , THIS MAYOR CANNOT SEEM TO UNDERSTAND TO PROVIDE THAT LEADERSHIP.
Go to the meetings and see it for yourself.
No Hiring of new public works people when recently a early retirement offer occured to GET RID OF THE PEOPLE TO CUT COSTS. Do you remember that topic of discussion ?
Those that critize the previous Mayor are living and reaping the financial benefits of that era and are making a mountain out of a mole hill on many issues today.
In these times, If you are still working , Thank God!.
If you need a job with the city , just check out the girls painting the curbs yellow over weeds, mud etc, you would think that the weeds would be cut or removed before the painting occurred.
I wonder how long this paint job will last , since we payed for it with the hard to come by tax revenue. (Just keep paying for poor workmanship I guess is the formula here. easy come easy go no sense of responsibility)
I want to correct an earlier comment I made regarding Aldermen Mertel and Potthoff as being the "sharpest knives" in the council drawer. I failed to mention Ron Wren as the alderman I believe to have the most credibility and honesty in serving the citizens of Peru. Ron brings a common sense approach to the table and seems genuinely concerned with making the right decision. Ron Wren was the only alderman with enough integrity to point out that the pool should not be open in it's current condition. The others ignored all reasonable and professional advice and put politics before the people. Ron Wren is a good man for Peru and I regret not pointing that out sooner.
7:22 a.m. - You're wrong about this administrations spending being out of control. You don't understand why a new hire is being considered. Pointing out the lack of workmanship and skills of teenaged summer help is a ridiculous and unfair criticism that means nothing. You bring nothing to the discussion. Learn the facts and don't come back here until you can contribute something useful. You're out of touch.
I'm sorry but I have to agree with the comment about the summer help. They're kids and they need to be supervised closer. It's still our tax dollar that's paying they're wages and there have been reports of some of them goofing off and no one checking on them. They need leadership and direction and to be checked up on.
anon 722: Your out of touch with the retiring incentive program in regard to saving momey. The city is talking about hiring one person, now one emolpoyee retired on his own no early out, spw Bleck was promoted, and two other employees took the early out and two more within the public works will retire before next february. So thats five employees retiring and one being promoted, leaving the workforce with a loss of six employees! I'm sure if the snowplowing isn't what it used to be because of this shortage, you'll be the first one to say what a lousy job the employees are doing! How would their not be a savings still with only hiring one person? Know your facts!!!
To 10:15 & 1:37PM
In regard to the hiring of ONE new employee (that is not needed because of the early retirement program) You are the one out of touch and do not have the facts.
WATCH WHAT WILL HAPPEN ! (Union rules ??) Then you can apologize later in this blog.
My observations and comment.
As I attend the city council meetings, I agree that Mr Potthoff and possibly Mr Mertel may be a step higher as the sharpest knives in the drawer BUT MR WREN IS NOTHING BUT A FLIP FLOPPER AND WANTS TO SPEND OUR TAX MONEY QUITE RECKLESSLY.
He shows poor judgement acting on behalf of the citizens of his ward and the city.
8:59 P.M
Perhaps you might have liked to add to your previous post.
adding "in my opinion"
As I agree whole heartedly with Steve about Ron Wren. We are lucky to have him on the Council in my opinion. Remember Wren is the one who tried to get the Council to hold off on the pool patch and paint. He was the one looking out for the people of Peru when no one else was including Mertel and Potthoff.
anon 846; what union rules? Explain the facts about union rules! No apology needed when the facts are facts!
8:59 p.m. - You refer to Ron Wren as a "flip-flopper" because he has decided to break away from the "obstructionist" faction of aldermen.
That is not a flip-flopper. That is a man of integrity who understands that working against the mayor is petty and childish and serves no useful purpose.
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