Letter to Editor on PSB sales tax

My View: Boone County Board does not trust the voting public - Opinion - Rockford Register Star - Rockford, IL

 

In response to Don Ellingson’s letter (Nov. 19) regarding the Boone County public safety sales tax. He asked us to use common sense; with that, I totally agree. But let us base that common sense on fact, not on rhetoric.

Fact: To insinuate that the sunset clause was simply not included is a misrepresentation of fact. When the original public safety sales tax referendum was presented to the county, the state did not permit the inclusion of a sunset clause — an omission that has now been corrected — partially because of this issue. Therefore, if the county had passed the referendum with a sunset clause, it would have been illegal. Given the statements made by the proponents of the tax and discussion that ensued at the time, had the sunset clause been legal, it would have most assuredly been added.

Fact: A previous board cannot bind a future board to certain actions. Previous boards bind future boards all the time with budgets and capital projects and other legislative measures, such as animal-control facilities and interstate interchanges. Some binding measures are permitted by state law.

Fact: Board members should be educated in the issues they are debating. Fully educated. To compare a sales tax to the building of schools is comparing apples to oranges. In addition, to insinuate that schools were built solely for future growth is a vast generalization. Many of us on the County Board knew that the growth was unsustainable and dangerous, and we voted against residential housing developments.

Fact: For the past 10 years, the county has had to transfer large sums of money from the public safety sales tax to the general fund. This transfer is needed to meet shortfalls in the budget. I beg you to use common sense. How does a County Board pass an annual budget that has consistently come in short on revenue? Were the budgets presented a false front with the intention to later claim a shortage and raid the public safety sales tax? Either the budgeting process is broken or this is being done intentionally. You or I could not survive on a budget that overprojects our income, especially if we overprojected our income for a decade.

Let me ask a question to the voting public: Why has this become such a debated issue? Why is it not feasible to present the continuation of the public safety sales tax to the voting public and let us decide whether to continue its implementation or discontinue its use?

The answer to that is quite simple: A general fear and lack of trust in the public. Your county government has come to rely on the tax as a revenue stream to fund other departments. Your county government does not trust the voting public to make the decision they want.

Fear that you will vote to discontinue the tax. The county government fears that a vote to eliminate the tax will force tough economic decisions for departments run by political comrades, or board members will have ignore the voting public and force the continuation of the tax. It is far easier to deny us the right to choose the future of the tax than to risk political suicide.

I would support the continuation of the tax. It is not causing me a financial hardship, and the benefits far outweigh the consequences of its removal. The right thing to do would be to present the case to the citizens and let them decide.

Taking away the right of the voting public to make this decision is abhorrent. Fellow residents, do not ask whether a past board should bind a future board in this taxation; ask your County Board members what they are afraid of by asking you to vote on the future of this taxation. After all, a vote by the residents would lay the issue to rest.

Terri Glass is a former member of the Boone County Board.

My View: Boone County Board does not trust the voting public - Opinion - Rockford Register Star - Rockford, IL

Belvidere leaders juggle options on Menomonie Street changes - News - Rockford Register Star - Rockford, IL

Ben Stanley
Staff writer

Posted Nov. 24, 2015 at 6:09 PM
Updated Nov 24, 2015 at 6:48 PM

BELVIDERE — City leaders are mulling options to escape a quagmire of miscommunication, poor planning and neighborhood backlash on a road project that turned a thoroughfare near the Boone County Courthouse into a one-way street.

The city spent about $6,500 this fall to turn Menomonie Street into a one-way between Main and Webster streets and build islands that established angle parking for police cars. Neighbors say they don't want the changes and were never notified of the city’s intentions before construction began.

Adding to neighbors' anger and confusion, aldermen never passed an ordinance to make the changes, leaving the project in legal limbo while construction crews worked under contract with the city. When construction finished in October, the road was not opened to traffic because of the unapproved ordinance, Public Works Director Brent Anderson said.

At last week's City Council meeting, neighbors demanded that the city reverse the changes. Now they're questioning why the police station needed more parking stalls in the first place. Instead of tearing up Menomonie Street, neighbors say, non-officers could use a lot behind the Boone County Jail, which would make room in the front lot for police vehicles.

"I still think that we have completely sideswiped the whole issue to begin with," resident Susan Orr said at a Committee of the Whole meeting Monday. "We still have 35 empty parking places in that back lot behind the jail. We still have civilians parking in the lot next to the police station and patrol cars out in the street.

"I do not and cannot understand why this is even an issue, with all the empty parking places behind the jail. You have civilians, secretaries, detectives, dispatchers parking in the lot right next to the police station. I don't understand why the squad cars aren't there."

Chief Jan Noble said the city doesn't have the authority to park there without permission from Boone County Sheriff Dave Ernest.

"By agreement 20 years ago, the city gave up its oversight of the (Public Safety Building) and gave that authority to the county," Noble said. "The assignment of the parking stalls typically comes with oversight from the sheriff. So I would have to grab the sheriff, sit down, go through this and see if that would even be an option for us."

Anderson presented two construction options Monday that would maintain angled police parking on Menomonie while accommodating two-way traffic. The first, which would widen the street slightly to make room for an eastbound lane, would cost the city $2,320. The other, for more than $11,000, would more dramatically widen the street and add space for parallel parking on the north side of Menomonie in addition to angled police parking on the south side.

A third option, costing $1,901, would essentially turn the street back to the way it was. But Noble was unwilling to entertain that option because it would eliminate extra parking stalls he says his police force needs.

"I would ask that the aldermen not lose track of why we're here," he said. "While I appreciate the input of people who live there, the parking of cars really should be a decision between your police chief and the sheriff, but I realize that we're here because that could not get resolved."

Aldermen and Mayor Mike Chamberlain tabled discussion until Dec. 28 so Noble could explore alternative options with Ernest.

Orr said all she and her neighbors want is two-way traffic on Menomonie.

"It keeps getting thrown around and we keep coming back," she said. "I'm just saying, utilize the parking lots before you start changing streets. I'm not happy that (Noble) said it was none of our business about the parking."

Belvidere leaders juggle options on Menomonie Street changes - News - Rockford Register Star - Rockford, IL

Our View: Boone County Board jail tax transfer to General Fund is questionable - Opinion - Rockford Register Star - Rockford, IL

By The Editorial Board
Rockford Register Star

Posted Nov. 14, 2015 at 9:00 AM

We were taught by our parents that "a promise made is a promise kept." For some of us, it's a lesson we need to relearn from time to time.

Evidently that message didn't get through to nine members of the Boone County Board, judging by what they did on Oct. 21 and what they plan on doing Wednesday.

In 1999, Boone voters passed a measure to enact a 1 percentage point sales tax, with the revenue going to expand the jail. This public safety tax, voters were told, would be used only to pay off the bonds, and it would end in 2018.

The voters said yes because they knew the old jail was obsolete and needed replacement. They also voted yes because the tax would be used only to pay off bonds. Then it would end. Seemed reasonable.

Ah, but times and members of the County Board changed. And that promise to use the tax only to pay off bonds? Well, that was then. Whatever those folks said in 1999 applied only to them, the new thinking goes. This is now, and we have other needs.

So on Oct. 21, the board voted to transfer $900,000 from the public safety tax's reserve fund to the general fund to balance a 2016 budget that otherwise faced a deficit. Chairman Bob Walberg defended the transfer. He was quoted in the Oct. 22 Register Star as saying, "I believe this is a very necessary action the board took. It's been a very confusing issue ... (and) people have tried to portray it other than what it really was intended to be, as far as the use of the money."

The board is voting on the 2016 budget, which includes the transfer, on Wednesday.

Walberg, in a conversation with the Register Star on Friday, again defended the board's action and said the County Board in 1999 made no specific promises about the future of the tax. He said that the bulk of the money to be transferred to the General Fund still will be used for public safety purposes, "chiefly for corrections." Although the transfer from the public safety tax fund to the General Fund is authorized at $900,000, Walberg said that only $800,000 will be needed to balance the budget. He called the fund transfer "a technical issue," not a breach of trust.

We understand what Walberg is saying. But we have a different view.

Ted Biondo, the region's leading taxpayer advocate for more than 20 years, said the Boone County Board action is "a betrayal of the taxpayers who approved that referendum. They changed the intended purpose of the tax, and I think it's going to hinder any other government that wants to put up a referendum for a property tax or sales tax."

Biondo is a Republican member of the Winnebago County Board, a former member of the Rock Valley College board of trustees, a former Rockford School board member and an op-ed contributor to this newspaper on tax-related matters.

Stephenson County Board Chairman Bill Hadley had a similar view.

"They shouldn't be going against what they told the people they were going to do. If you weren't on the board when that referendum went through, you still need to protect the integrity of that referendum. This is an example of why the people don't trust government at all levels," Hadley said.

We understand that Boone County is in a financial bind. All local governments in Illinois are in the same boat, thanks in part to the inability of our state lawmakers and Gov. Bruce Rauner to pass a budget. Funds that supply money to counties, cities, community colleges and other governments have been frozen; these governments may never receive all the money the state owes them.

However, voters who passed the 1999 referendum say that the public safety tax was passed specifically to pay off bonds for the jail expansion. When that happens in 2018, they believed, the tax would disappear.

The current board should honor the voters' beliefs. If that means there's not enough money to fund the current budget, the right thing to do would be to go back to the voters and ask for a tax increase. And if voters turn that down, make the cuts required. It's their government, after all.

Our View: Boone County Board jail tax transfer to General Fund is questionable - Opinion - Rockford Register Star - Rockford, IL

My View: Boone board betraying public trust - Opinion - Rockford Register Star - Rockford, IL

By Cathy Ward

Posted Nov. 14, 2015 at 4:36 PM

Banning wind farms in Boone County and raiding the county's public safety sales tax funds will highlight the County Board meeting this week.

The board will vote on both issues at 6:30 p.m. Wednesday. Both decisions will have a huge impact on the county's financial future for years to come and will especially affect children, as wind farms could provide millions for schools as they do in numerous counties throughout the state.

Board watchers on both topics predict lopsided votes in favor of both the ban on wind farms and the raid of the public sales tax fund as committees have been stacked on both issues by Chairman Bob Walberg.

On the wind farm topic, Boone County's current ordinance has a 1,000-foot setback from any structure. The proposal seeks a 2,640-foot setback (eight football fields) from a property line — a huge difference. That would eliminate any wind tower to be built in the county, unless a waiver is given by a private property owner. None has been offered.

Those who support wind farms believe in green energy. They believe that property owners have the right to harvest the wind and that all people and taxing bodies in the county will benefit from the millions of dollars this new business will bring.

The anti-wind farm group contend wind farms are a safety and health hazard. They brought in so-called experts for 10 months to testify of the dangers, but ironically, despite the fact that we have three outstanding health facilities in our midst, OSF Saint Anthony, SwedishAmerican and MercyRockford, and dozens of excellent doctors with medical degrees, not one person was invited to testify or come and share proof of these supposed dangers.

Also, our Boone County Health Board found “no evidence of public health impact” from wind farms.

On the subject of raiding public safety sales tax to balance the budget, I believe this is a violation of public trust. In 1999, board members and other supporters of a new jail promised the tax would “finance bond payments only. The statue allowed the county to sunset (end) the tax when the bonds are paid (2018). ”

Five years ago, the County Board feared this current raid. We passed an ordinance that decreased the use each year of funds from the tax and stated in 2016 (the new budget year) that only $125,000 would be transferred. We also stated that the tax would end in 2018 as promised.

However, this current board deleted the ending date of 2018, meaning this tax could go on forever. They also decided to increase the transfer this year from $125,000 to $875,000.

So far, taxpayers had paid $19 million for a jail that cost $9 million, and we still owe $1.5 million.

It's interesting that board members will be voting on both of these critical financial issues on one night. On the one hand, a group wants to help bring business and millions of dollars of tax money to our county to help all of our people and help balance our budget. On the other, a group wants to ban this business and create an anti-business climate. It's created the certainty of a costly lawsuit and animosities that will last for generations.

Cathy Ward is a member of the Boone County Board.

My View: Boone board betraying public trust - Opinion - Rockford Register Star - Rockford, IL

BCJ: Editorial on taxation and PSB Sales Tax

Above is from the October 23, 2015 Boone County Journal which is available free of cost at merchants across the county and on-line at:  http://www.boonecountyjournal.com/news/2015/Boone-County-News-10-23-15.pdf#page=1

Chuck Sweeny speak again of the PSB sales tax

Below is from:  http://www.rrstar.com/article/20150413/NEWS/150419736/10458/OPINION

Boone County Board destroys future credibility - Blogs - Rockford Register Star

Mr.Biondo questions whether the majority of county board of Boone County are really Republicans.

By Ted Biondo

Fact-based discussions of local, state and national issues from a distinctly conservative perspective. Topics will include taxes, education, finances and anything else that strikes my fancy.

 

Boone County Board destroys future credibility

April 4, 2015 5:20 p.m.

If there was ever an action taken by an elected body that eliminated any lingering trust in elected official’s credibility, look no further than the Boone County Board majority.
In order to aid the passage of a 1999 referendum for construction bonds to fund a $9.3 million dollar jail expansion, members of the Boone County Board and bond proponents promised voters, and added a clause in a 2011 ordinance, that pledged when the bonds were retired in 2018, the one-half cent sales tax would be repealed – a sunset clause.
In March, 2015, the Boone County Board rescinded the 2018 sunset clause without any input from the taxpayers, allowing the board to continue to use the sales tax to pay off other public safety operations and capital expenditures after the bonds are retired.
This action by the Boone County Board will place the credibility of all taxing bodies in jeopardy for future tax referendums with board guaranteed end dates.
Many taxpayers will simply point their collective fingers toward the Boone County Board as the typical example that regardless of promises made, all taxes will be collected for an indeterminate period because elected officials can’t be trusted.
The lame excuse given by the current board majority for rescinding the sunset clause was that “no one can promise and obligate a future board 20 years down the road.”
If that’s the case, why not let the 2018 board make its own decision on the sales tax sunset clause with voter input? It seems obvious that the current county board is the one tying the hands of future boards.
Current boards are obligated by previous board’s decisions all the time, whether the decisions are 20 year bonds, increases in staff salaries, benefits and other long term expenditures, which future boards must by law continue to implement.
The contracts signed and payments made for the construction bond, which was passed almost two decades ago, obligated all the Boone County boards elected during that period, including the current board to 20 years of debt service. It is how the system works.
Bob Walberg, Chairman of the Boone County Board recently wrote in a column stating that he believed, “the real reasons most people supported the referendum is because they saw the need for public safety as the ballot stated.”
That’s conjecture, Bob, since your board just denied the Boone County taxpayers an opportunity to voice their preference to continue or eliminate the sales tax as other districts in the area have done for their constituents.
Also, your comments concerning lower revenues and cuts by state government have affected all taxing districts in the area, not just Boone County.
Thankfully other area boards, regardless of budget constraints, have honored their sunset clauses by asking for voter input, unlike the Boone County Board rescinding their sunset clause with little or no public awareness of their intentions, using a deft sleight of hand with the published meeting agenda.
The Rockford School District and the City of Rockford have enhanced their trust and credibility, by asking their voters multiple times over the past decade to continue or rescind the various taxes for capital improvement or for operation and expenses with resoundingly successful outcomes each time after informing their voters what was to be done with the money.
The Village of Cherry Valley is also asking their voters in the April 7th election to continue their sales tax levy, which sunsets next year.
Another point to consider was that the Boone County Board could have voted to use the excess sales taxes collected during the bond retirement period to pay down the debt service faster, thus saving taxpayers some of the accruing interest, before becoming so dependent upon the sales tax for other expenditures.
After all, shouldn’t elected officials at least ask the people footing the bill?
Boone County taxpayers will have to insist in the future that their elected officials place any sunset clause directly into the referendum language or the text of the ballot before voting their approval, to ensure that their officials will not repeat this board’s actions!
It’s hard to believe that the overwhelming majority of the Boone County Board ran as Republicans!

Boone County Board destroys future credibility - Blogs - Rockford Register Star

Chuck Sweeny: Boone County Board should trust voters and allow public safety tax to expire in 2018 - News - Rockford Register Star - Rockford, IL

 

Why don't people trust government? One example is in Boone County.

Above is from:  Chuck Sweeny: Boone County Board should trust voters and allow public safety tax to expire in 2018 - News - Rockford Register Star - Rockford, IL

SEE Comments:  http://www.rrstar.com/article/20150401/NEWS/150409888

My View: 2018 Boone County Board will decide future of tax - Opinion - Rockford Register Star - Rockford, IL

 

By Bob Walberg
Boone County Board chairman

Posted Mar. 28, 2015 at 3:02 PM
Updated at 3:46 PM

The Boone County Board of 2018 will still have the decision to stop or continue collecting the Public Safety Tax. An ordinance to abate property taxes used to guarantee the bond payments was on the board agenda and was properly published. One of the “whereas” statements was the pledge to demand that the board in 2018 will stop collecting the tax. One member pointed this out and remarked that we promised to only use the money for the jail and stop collecting it when the jail bonds are paid. Discussion during the meeting led to amending the ordinance and removing the “whereas” pledge to stop collecting the tax in 2018.

Who are the people who promised to stop collecting the Boone County Public Safety Tax when the jail bonds are paid in 2018?

They made a promise with no authority to back them up. The ballot made no mention of a sunset to this referendum that created the Public Safety Sales Tax. No one can promise and obligate a board 20 years down the road. The board of 2018 will have that difficult decision to make regarding the future of this tax.

That group promised to only use the money to pay for the jail building. In 2003 the board decided to also pay jailor salaries with the money. Since then, the money has also been used for Public Safety Capital Improvements. Every year the board voted for the budget with this spending included.

All the talk of removing this is a distraction and publicity stunt. I believe the real reasons most people supported the referendum is because they saw the need for public safety as the ballot stated. They believed that it was better to pay for this need with sales taxes instead of real estate taxes. The Public Safety Sales Tax does not tax food, medicine or titled property. If the board of 2018 stops collecting the sales tax, their next decision will be on how to replace those revenues or stop paying those expenses.

It was foolish to think that when the jail bonds were paid we would close the jail because there was no money to operate it.

Every year the Boone County Board makes cuts because our revenues are increasing much less than the increase in our costs. The state is making very large reductions to county revenues. Some of the proposed reductions include freezing property taxes and cutting the county’s share of the income tax by 50 percent.

The Boone County Board will need level-headed, responsible members to deal with the apparent overwhelming challenges that appear to be facing them.

A similar problem happened to the District 100 School Board. Rapid growth was impacting the district. The plan was to build schools to accommodate the future growth. They planned to pay for the schools with the larger population that would generate property tax dollars. That would require a smaller share of the cost of the new buildings for each taxpayer. Again, unforeseen events took place, and a declining population faced very large bond payments for the schools.

Page 2 of 2 - The community clearly saw the problem and passed a referendum for a sales tax to give relief to the property tax obligation of the school district.

In 20 years the situation can change. We can’t expect board members to bury their heads in the sand and ignore the responsibility of providing public safety for the county. Our present board only removed the demand being placed on the board of 2018. The decision to stop collection of the tax will still be the 2018 board's challenge.

Bob Walberg is chairman of the Boone County Board

My View: 2018 Boone County Board will decide future of tax - Opinion - Rockford Register Star - Rockford, IL

My View: Boone County Board breaks promise to taxpayers with sales tax vote - Opinion - Rockford Register Star - Rockford, IL

 

by Cathy Ward
Boone County Board

Posted Mar. 28, 2015 at 2:11 PM

BELVIDERE — The Boone County Board, with strong encouragement from Chairman Bob Walberg, voted last week to extend Public Safety Sales tax essentially forever, totally disregarding the promise made to taxpayers to end the tax in 2018 when the jail bonds will be completely paid.

The board voted 8-4 to extend the tax forever despite the fact that the proposal to extend the tax was not even on the agenda to be discussed.

The motion was made by board vice chair Paul Larson and quickly seconded by new board member Sherry Giesckie. Board members voting to ignore the promise were Jeff Carlisle, Denny Ellingson, Sherry Giesckie, Karl Johnson, Paul Larson, Ray Larson, Craig Schutz, and Walberg.

Those opposed were Sherry Branson, Ken Freeman, Brad Stark and Ward.

When the tax was approved by voters in 1999, the supporters promised voters, “The proposed one-half percent increase is projected to generate enough additional revenue to finance bond payments only. Other costs related to the jail expansion will be financed by county general fund operating funds, and/or grants. The statue allows the county to sunset (end) the tax when the bonds are paid. ” (2018)

Those who campaigned for the new jail, including former Sheriff Duane Wirth, always told me that was the promise was definitely made.

Debate over the use of public safety sales tax has gone on for years, especially when finances started to get tight in the recession. Some board members always objected, but it was expected by most of us that the tax would end as promised in 2018. Since 2004, more than $6 million has been siphoned off for other general fund expenses. Therefore, the total bill for the jail could  have been paid years ago.

Last February, Larson started his campaign to ignore the wishes of the voters and asked that the 2018 date be eliminated. Walberg had supported this same plan for years, but the majority of board members, even though we, at times, agreed that safety needs should be financed and agreed to pay them, always stated emphatically that the tax must end in 2018 as promised.

When questioned about voting last week on an important issue that was not on the agenda for the public to review, Walberg said the matter could be included with a related public safety sales tax issue.

I totally disagree. This is an important public trust issue — this is an important Open Meetings Act issue. This is an issue of being transparent.

Walberg and Larson have always argued that the county needs the money. If we don't use this source of revenue, they say, cuts will have to be in county government.

So be it.

I believe we should let our taxpayers decide in a referendum to extend the tax. They should decide if we should make cuts or increase taxes. I trust our taxpayers. Even in the recession, they agreed to a property tax three years ago to help our veterans and another property tax last year to help our animals with a new shelter.

It's no wonder with Walberg's attitude that the taxpayers don't trust government.

It's kind of interesting that Walberg recently wanted a slice of any revenue coming from a proposed gambling casino in Rockford because he seemed sure Boone County people would go.

Following that same logic since half the people in Boone Countv reside in Belvidere, half of the millions collected from the public safety sales tax should be repaid to the city of Belvidere because it can be assumed that about half of the crime in the county happens in the city.

Only seems fair with Walberg's logic.

Cathy Ward is a member of the Boone County Board.

My View: Boone County Board breaks promise to taxpayers with sales tax vote - Opinion - Rockford Register Star - Rockford, IL

BCJ Editorial: Pubic Safety Sales Tax

The editor supplies a history of the PSB sales tax and a summary of the legal and ethical issues.

BCJ: PSB Sales Tax

BCJ Editorial: Pubic Safety Sales Tax

Were the Voters of Boone County “sold” a bundle of lies?

Below is the advertising circular use to “sell” the PSB sales tax referenda.  Is there any question that the sales tax was to be ended in twenty years, namely 2018?

Please note the ad’s answer regarding will the tax end.  Not a mere “yes” but three “yes’s”

Any excess money from the referendum shortens sunset.  But this did not happen.

BOONE COUNTY PSB Sales tax

 

The Sheriff is requesting Boone County Board to purchase eight new squad cars for approximately $18,500 each.  The funds are to be obtained from the PSB Bond fund. This would be over and above the $200,000 limit imposed by Ordinance 10-35 for FY 2015.  See Ordinance below.

Here are some of the facts regarding the issue whether this sales tax should be used for anything other than interest and principle on the PSB Building.

This was previously posted in 2012.

Boone County’s half cent sales tax for the Jail

Boone County Government’s website has a summary of the history of this sales tax.  The following are excerpts from that site which is at:  http://www.boonecountyil.org/sites/default/files/pubsafety%20sales%20tax.pdf

First, the actual ballot resolution

Click on the photocopy to enlarge:

The Boone County Board’s 1999 published statement regarding the referendum issue.

Beginning in FY 2004 (12-1-2003 to 11-30-2004) the county began using the sales tax for items related to jail operations but not related to bond repayment.  Note the FY 2001 numbers were only for part of the year.  See below:

For FY 2011, a very large use of Jail sales tax was actually authorized.  See Ordinance 10-35 below. The county proposed very large operational expenses for the sales tax, gradually reducing it until it was projected to stop in 2018 with the final payment on the jail bonds.

The half cent PSB sales tax was budgeted to be $1,358,000 for the FY 2012.  The highest PSB tax receipts was in 2008 when $1,653,891 was received. See below:

Did the County keep its word regarding use of the PSB Sales Tax?

Below is a copy of the campaign handout for the original tax in 2008.

.

Note the #1 item on the fact sheet from the back side of the handout.  It is the second bullet: “ Any excess money from the referendum shortens sunset.”

When the referendum passed there possibly was no legal recourse for the county but to use excess sales tax to pay down the debt. However later court decisions allowed PSB sales tax to be used for PSB operating costs.  However should the county do this without voter approval, at least in an advisory referendum?  Today over $300,000 of PSB sales tax is being used annually for operations, will the sales tax actually end in 2018 as projected?

Boone County’s half cent sales tax for the Jail

Boone County Government’s website has a summary of the history of this sales tax.  The following are excerpts from that site which is at:  http://www.boonecountyil.org/sites/default/files/pubsafety%20sales%20tax.pdf

First, the actual ballot resolution

Click on the photocopy to enlarge:

The Boone County Board’s 1999 published statement regarding the referendum issue.

Beginning in FY 2004 (12-1-2003 to 11-30-2004) the county began using the sales tax for items related to jail operations but not related to bond repayment.  Note the FY 2001 numbers were only for part of the year.  See below:

For FY 2011, a very large use of Jail sales tax was actually authorized.  See Ordinance 10-35 below. The county proposed very large operational expenses for the sales tax, gradually reducing it until it was projected to stop in 2018 with the final payment on the jail bonds.

The half cent PSB sales tax is budgeted to be $1,358,000 for the current year and is running slightly greater than that projection.  The highest PSB tax receipts was in 2008 when $1,653,891 was received. See below:

The county is currently refinancing the Jail Bonds to obtain a lower interest rate.  Annual principle repayment on the new bonds will range from $530,000 to $575,000 each year. Annual interest on the bond will be less than $150,000 each year and falling. So something approaching $700,000 will be available for PSB related operating expenses.  See draft version of bond repayment schedule shown below:

The major questions are:

 1. Will the county really abide by Ordinance 10-35 or will it use more than stated sales tax revenue for PSB operating expenses?

2.  Will the county really end the sales tax in 2018, if so how will it make up for the loss of income for PSB operating expenses?

Editor’s note:  It may seem that the county is cash rich because its PSB sales tax can so readily pay for its construction bonds.  The reality is quite different.  The county is quite cash strapped and in past years has curtailed levies for highway and bridges and the health departments so has to increase the county’s real estate levy for its general fund and still abide by tax caps.

BCJ: Jail Bonds/sales tax for jail

Click on the photocopy o enlarge: 

The above article is available free of cost at merchants across the county and on the internet at:  http://www.boonecountyjournal.com/news/2012/Boone-County-News-05-11-12.pdf#page=2