Tough Choices
By Mayor Steve Chirico
Since being seated in May of this year, the Naperville City Council has diligently been working on sustainable solutions to the City’s fiscal imbalance. It is critical to implement solutions sooner rather than later so that Naperville does not become the next Springfield. Delaying decisions can have serious consequences for future generations.
No elected official wants to impose new burdens on constituents, but the Council cannot simply, and in good faith, eliminate the City services you rely on every day. The City shouldn’t stop investing in traffic relief, offer only 85 percent police coverage or hope for a warm winter to decrease snow plowing operations.
In light of this, the old ways of doing things needs to be re-evaluated. “We’ve always done it this way,” is not an acceptable answer.
The first step with respect to our taxpayers is to still look within and make sure we are as lean and efficient as we can possibly be. As part of the budget solution, staff is responsible for identifying $1.8 million in savings from current operations. This commitment to cutting the budget is a mandatory first step.
Second, the Council is prioritizing every dollar we spend on capital projects. Until we absolutely must spend resources, we will not; but we cannot allow our community to fall behind, or worse, fall apart.
The next logical step is bringing funding parity to major expenses. For decades the City used tax dollars to subsidize single-family residential trash service. The time has come to align the cost of service with those who receive it.
Finally, we must find a way to pay down public debt, which has skyrocketed, and replenish cash reserves to maintain the City’s AAA bond rating. Failing to do so will result in higher interest payments, which will require even more taxes.
Some have suggested that all of this should be achieved through a property tax increase to allow homeowners to deduct this cost on their taxes. That would require a $13.5 million increase in property taxes. The Tax Foundation recently reported that Illinois has the second highest property tax bills in the nation. For too many residents, property taxes are almost a second mortgage. It is not responsible to add to this burden.
This is why I am prepared to support a home-rule sales tax restricted in its use. At a rate of half a percent, the City’s fiscal house can get back in order. Starting July 2016, the net impact to taxpayers will be reduced by half when the DuPage Water Commission sales tax expires.
As a small business owner and Chamber member, I too believe in maintaining our business community’s competitive advantage. I fully support the Marketplace Fairness Act and urge our representatives to pass it immediately to address the unfair advantage online retailers currently exploit. I understand any tax increase presents a challenge. That is why this tax will be implemented at a rate that maintains Naperville’s advantage to peer communities.
One option is to institute a $13.5 million permanent property tax increase paid for solely by Naperville residents and businesses. The other is to institute a reasonable sales tax that will be paid for partially by visitors to Naperville.
This is a difficult choice. I remain committed to increasing revenue by promoting business growth, which I believe is the best long-term solution for our community’s financial health. I support the idea of holding Council accountable to these objectives and a sunset provision when the objectives have been met.
In the short-term, implementing the home-rule sales tax and the garbage fee is the most responsible path forward for Naperville.
Know the issues
Editor’s Note / The above letter from Naperville Mayor Steve Chirico to the community follows recent budget workshops as well as informative and thoughtful discussion at the September 1, 2015, City Council meeting when the first reading of this plan was proposed under “Reports and Recommendations.” Watch the exchange of ideas during commentary streaming on demand on the City’s Website. No votes were cast during the first reading.
Thanks for knowing the issues and for paying attention to your local municipal government. Time for public comment is scheduled at every City Council meeting. The next meeting begins at 7PM Tues., Sept. 15, in Council Chambers.
For more info or to send feedback to your City Council, contact Mayor Chirico at chiricos@naperville.il.us. Contact all members of the City Council at council@naperville.il.us.
Related PN Posts / Home Rule Sales Tax – Other Thoughts & Views
