Friday, March 29, 2013

Local Political Issues - Part Two


Like pension funding capital expenses pose another long-term financial burden on the city. Replacing water and sewer infrastructure has been taken care of. The water and sewer rates cover the cost of building wells, pumping stations and water towers. Those rates also cover the costs of water mains and conduit connections throughout the city. The rates also support the cost of sewer pipes, pumping stations and sewage treatment by Naperville’s sewer treatment plant. Water and sewer rates in Warrenville not only pay current operating expenses they also accumulate in investment funds that will eventually pay for the replacement and/or major repair of existing infrastructure of the systems. If prevailing costs rise due to inflation, billings by Naperville, or more stringent EPA regulations, then our water and sewer rates will rise. Over time these costs will rise. Period. Fact of life. Faulting decision makers to fulfill their responsibilities is pure nonsense. We elect these people to do the right thing and they do.

Taxes. They go up. To pay for rising costs and obligations. The trick is to control the rise so they do not overwhelm the community. Economic development allows such costs to be spread over more entities and people so individual shares do not rise the full amount. Projecting revenues and expenses well into the future allows the city to prepare for major obligation shifts without ‘breaking the bank’ in any one year. Raising use taxes and fees for those who create the expense in the first place moderates tax burdens for everyone else. Sales taxes should be designed to cover the expense required by the business community. Target pays property taxes. But they also generate a lot of traffic that wears out roadways, requires police attention for traffic control and maintaining public safety. Their property taxes do not cover all of the expenses created by Target’s operation in town. Sales taxes help a great deal to pay for such costs. The entire TIF #1 was funded by the land owner and the city paid for by property and sales taxes set aside to reimburse all TIF partners for investment expenses to convert a quarry to a vibrant commercial center. Filling in the quarry. Constructing water, sewer and underground utilities for natural gas and electricity. Building roads, intersections, curbs, gutters and storm water retention, detention and management systems. Providing traffic lights and street lights, sidewalks and landscaping. Designing all of the above. Engineering all of the above. Creating expenses and investment funding years in advance of payback. This is a TIF in operation. These are the mechanics and the risks. And it paid off in huge numbers.

TIF #1 paid the city more than $75 million. Same for Amoco, then the owner of the property. These dollars paid the risk takers for taking the risk. The city got a new city hall, new recreation center, expanded and remodeled library, expanded fire department and new fire equipment, computer labs in the local schools, new city garage and public works center, new police station, new sidewalks, street lights, curbs/gutters and streets. Plus the city got a dynamic business center in Cantera that employs maybe as much as 20,000 people per day. Those folks come to Warrenville and pay for food in the restaurants and buy services and goods in local businesses and pay sales taxes that benefit the community. They pay those taxes not current resident property owners. The businesses pay their own way in property taxes. The quality of life in Warrenville has been boosted many times over simply because the TIF #1 was accomplished. And TIF #2 was very useful to the quality of life in Warrenville.

Our leaders took chances and made difficult decisions to make a difference over a long term time line. Rather than getting kicked for their efforts, they deserve our thanks and praise.

Complainers. There will always be complainers. They will distort the facts; sometimes not because they intend to but because they simply don’t understand the complexities of the issues they are jabbering about. Yet some do distort intentionally. Why? I’m not sure. Maybe because they get a sense of power or attention they need to feel good about themselves? Maybe they want political power? Maybe they just get a kick out of demeaning a public official. Sort of like a bully?

Warrenville is a microcosm of America. Only better. We will always have public issues to manage together as a community. If we do our work well these matters will be managed well for all of our benefit. If we don’t do our work our elected officials will be doing their work under a handicap. The least we can do is get out of their way so the work gets done. If you don’t trust that to be true, then get informed or better yet run for office and take on the responsibility.

Just remember, you’ll get kicked in the head by complainers. They evidently come with the territory. You should know. You were one of them!

March 29, 2013



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