Ritschel not seeing all the benefits of higher taxes

Here’s an intriguing story from the Journal Star. It’s in regard to a request from City staff to raise sales taxes downtown to help repay general obligation bonds that will be used to build a new Mariott hotel:

Civic Center officials believe an extra 1 percent sales tax on concessions and catering could put the Downtown sports and recreations center at a competitive disadvantage compared to other nearby facilities . . . .

Ritschel said the 1 percent tax would generate approximately $30,000 a year for the Civic Center, which is less money than they anticipate losing to East Peoria and elsewhere because of the extra tax.

Peoria and East Peoria tax similarly when it comes to hotels, food and beverage sales, Ritschel said, so the extra 1 percent would make the Civic Center “more uncompetitive.”

Perhaps someone from the museum group can explain to Ms. Ritschel and the rest of the Civic Center officials the big benefits of higher sales taxes. They spur economic growth; they don’t hurt it. The new Marriott downtown will bring jobs and be like our own little stimulus package. And besides, it’s so cheap — only $1 for every $100 spent. How much does the average person spend on concessions downtown? $25? It’s only going to add an extra quarter to your purchase! Pocket change, dude. They must just be naysayers who don’t want to see progress in Peoria.

Obviously, I’m poking fun at the arguments given for the museum sales tax. But all sarcasm aside, I actually agree with Ritschel on this issue. The same thing that Ritschel fears will happen with a 1% sales tax increase will also happen if voters approve a .25% sales tax increase in Peoria County to pay for the proposed downtown museum. It will make us less competitive and drive more business across the river and elsewhere. Did you catch the phrase she used? She said a tax increase would make the Civic Center “more uncompetitive.” In other words, there’s already a tax disparity, and adding to it is just going to exacerbate the problem.

Did the Bradley professors take the cross-border effect of tax disparity into account when they did their economic analysis of the museum project? I’ve added that to my list of questions to ask when we meet. I expect a call soon to set up a meeting date/time.

Did Peoria County break ethics law by conducting survey?

Recently, Peoria County did a web-based survey regarding the proposed downtown museum with this explanation:

Your Peoria County Government is interested in your opinion regarding public funding of the Peoria Riverfront Museum. Museum partners have requested public funding to complete the project, so the County Board must decide whether to proceed with a referendum to increase the sales tax rate one quarter of one percent. Your participation in this brief survey will help with that decision.

And as part of its “National Citizen Survey” in 2008, it asked this question:

The Peoria Riverfront Museum project – with a focus on education, history, arts, and sciences – has fallen short of its public and private fundraising goals. To what degree would you support or oppose a voter referendum to increase the sales tax rate by .25 percent (for example, from 8.0% to 8.25% for the City of Peoria) to fund the remaining cost of constructing money?

The question is, can the county do this — legally? The municipal code (as required by state law under 5 ILCS 430) appears to prohibit this kind of political activity. Sec. 2-29(b)(1) and (2) states, “No officer or employee shall intentionally perform any prohibited political activity during any compensated time, as defined herein.” There’s a whole list of what is considered “prohibited political activity,” but here’s the one about surveys from Sec. 2-29(a) [emphasis mine]:

Prohibited political activity means [. . .] (5) Surveying or gathering information from potential or actual voters in an election to determine probable vote outcome in connection with a campaign for elective office or on behalf of a political organization for political purposes or for or against any referendum question.

Isn’t this precisely what the county has done? The web survey and the National Citizen Survey question are clear attempts to determine the probable vote outcome of a sales tax referendum for the museum. They were both done at county expense, on county time, by county employees. What service does this provide citizens of the county? None that I can see. The only thing it appears to provide is taxpayer-funded market research for the museum group.

District 150 finances in question

Several days ago, I mentioned that audit reports the last several years for District 150 have been warning about inadequate internal controls. Things are no different this year, the Journal Star reports.

The internal financial review controls at District 150 are at the very least inadequate, resulting in errors, unsubstantiated account balances and generally leaves the district without an accurate day-to-day report of its cash flow, according to a letter from the district’s auditors.

I had also wondered how Cahill could keep his job with such terrible audit reports year after year. Apparently Cahill wondered that himself, according to an e-mail he wrote that the Journal Star acquired through a Freedom of Information Act request:

Cahill said he believed the [audit] letter, received from District 150 this week through a Freedom of Information Act request, would be used in calling for his termination, according to an e-mail from his District 150 account to a Chicago attorney, received through a separate FOIA request.

“The attached will be used by several board members who, I suspect, will call for my firing,” the Feb. 5 e-mail states. “What the management letter does not disclose is that most if not all the items reported have been the norm in the district for more than 14 years, according to auditors (Ron Hilton, Dennis Baily, and Helen Barrick), and cover the terms of at least three controller-treasurers.”

Interesting defense. He’s basically saying that internal controls have always been inadequate, so he shouldn’t be held responsible for their continuing to be inadequate. Not very convincing.

But here’s what really slays me. The headline for this story is “District 150’s books a mess.” But another report filed just hours before this one has the headline: “District 150: Finances in order.” This latter story is about District 150’s meeting with the Public Building Commission to assure them that the district’s finances are not a problem.

Nine District 150 representatives filled a small meeting room before the Public Building Commission of Peoria on Thursday, reassuring its members that the school district is on the right financial path.

“I want to reassure this particular body that the Board of Education immediately began taking action in January to adjust expenditures to meet those predicted revenue shortfalls,” Superintendent Ken Hinton told PBC members. “This board, this administration is completely dedicated in seeing that our school district is solvent.”

Not that this was at all necessary. PBC members appear unconcerned with District 150’s budget woes.

When asked whether the PBC has any concerns about the district’s financial solvency and the district’s ability to repay the bonds, Goldstein and Thornton said “no.” Both men also noted the commission had no concerns about Cahill’s departure.

Really? No concerns at all? The district “has projected it will have a $4.3 million deficit and possible $9 million-plus revenue shortfall next year,” and they fired their controller/treasurer, and their audit reports have been deplorable, but the PBC has no concerns? I guess if you’re an unelected body, unaccountable to the voters, you can afford to take such a cavalier attitude with property tax money.

Parker’s mayoral eligibility in question (UPDATED)

HOI News is reporting that General Parker, candidate for mayor of Peoria, has a criminal past that includes two felony convictions. According to state law, convicted felons cannot hold the office of mayor.

But there’s a catch. Evidently, the only way this is enforced is if someone contests Parker’s candidacy.

The State Board of Elections said it is not illegal for a felon to run for office, in fact they can even win and serve.

Only when someone formally objects to the state’s attorney is it investigated.

Parker is trying to get a pardon from Governor Quinn. Parker is the only candidate running against incumbent Mayor Jim Ardis.

UPDATE: The Journal Star has an article up about this now. It’s not looking good for Parker’s mayoral run.

I honestly didn’t know that he had been convicted of a felony. It was mentioned on my blog several days ago that a convicted felon couldn’t serve as mayor, but I didn’t think anything of it because I thought Parker’s offenses were misdemeanors. Guess I missed the boat on that one.

Just out of curiosity, I wonder what the rationale is for barring felons from being mayor. Obviously, if they’re in prison or on parole that would make sense. But what if they already served all their time and had paid their debt to society? Why should it be the unpardonable sin?

County sales tax opposition organized

Although the Journal Star says, “Group rises to oppose museum,” the group — Citizens for Responsible Spending — actually rises simply to oppose a proposed county sales tax for public facilities. The .25% tax increase would double the county’s tax rate and would be used to fill a funding gap for a museum that hasn’t even raised all its private capital yet.

That’s right. Even if the public referendum passes and successfully closes the gap in the public funding portion of the museum’s financing plan, the museum group will still be $11 million short in private funding, according to their own website. That’s after six or seven years of fundraising, including high-profile efforts by current and former mayors to get more donors.

Has anyone in the museum group ever entertained the notion that maybe — just maybe — the problem isn’t a fundraising problem? That maybe the problem is that their museum plan is too expensive, too inefficient, and unsustainable?

Akeson, Riggenbach advance

Voters in Peoria’s third district selected two candidates to face off in the April 7 general election: Tim Riggenbach and Beth Akeson. The final results were:

Candidate Votes Percent
Timothy D. Riggenbach 507 54%
Beth Akeson 394 42%
Kelley C. McGownd Mammen 38 4%

Only 113 votes separate the two advancing candidates. Voter turnout was only 7% — 943 people voted out of 13,479 registered voters. (In case you’re doing the math, there were four “under votes,” meaning four people didn’t vote for any of the three candidates.) Since the April 7 general election will also include a school board race and a sales tax referendum, turnout will likely be quite a bit larger.

It promises to be a close and interesting race.

Berean Bookstore closing its doors for good

A local Christian bookstore that has been serving Peoria for over 60 years has announced it will be closing its doors for good. Berean Bookstore in Evergreen Square next to Office Depot and Kroger sent this letter to those on their mailing list last week. It says, in part:

Dear Loyal Customer and Friend,

A HUGE STORE CLOSING SALE will begin immediately to LIQUIDATE EVERY SINGLE ITEM of merchandise in our store to include all Bibles, Books, Church Supplies, Children’s Books & Toys, Spanish Products, All Music, Gifts, Home Decor, Framed Art, Audio & Video, Greeting Cards, Educational Supplies, Demdaco Figurines, Candles, Seasonal Lines, T-Shirts and much more.

We are CLOSING OUR DOORS FOREVER. All of our merchandise, selected store fixtures, furniture, and equipment must be sold . . . .

After 63 years of serving the community this [invitation-only] sale is initiated only after careful consideration. It is our way of thanking you for your business and friendship while at the same time accomplishing our goals.

I remember when Berean was on Knoxville just south of McClure. The place was packed with product — records, tapes, bibles, books, curriculum, and sheet music. There wasn’t very much tacky Christian gift product back then. Since then, Berean has moved to Sheridan Village, and then to its current location in Evergreen Square. And with each successive move, their stock of books and music got smaller, and their selection of tacky Christian gift product got bigger.

You see, gift product has a big markup, whereas books and music don’t. So in order to stay profitable, the “bookstore” became more of a “gift store.” I would have thought they had it made after most other Christian bookstores in the area closed (All That Matters in the Metro Centre, Hidden Treasure in Washington, JC’s in Morton, Mustard Seed in Pekin). But I guess they just couldn’t compete with the huge stock, easy ordering, and quick shipping of internet bookshops such as Christian Book Distributors.

Berean also has bookstores Bloomington, Champaign, and Decatur. No word on whether they are closing as well, or if this only affects Peoria.

Meanwhile, two other area businesses are closing: Tilley’s in the River Station (which lasted just six months) and the Golden Corral in Washington (which left its employees high and dry, closing without notice or explanation).

Royce Elliott to perform at PFT candidates’ fundraiser

From my in-box:

Hedy Elliott and I (Jeff Adkins-Dutro) are running for vice president and president (respectively) of the Peoria Federation of Teachers. On March 8, 2009, from noon – 3pm, at Sky Harbor in West Peoria, Illinois, we will be hosting a campaign fundraiser. For fifteen bucks, you can take in a show by comedian Royce Elliott, eat lunch, drink tea or coffee, purchase beer from the cash bar (which will be running at least one beer special), and support our cause.

You can see what we’re all about by visiting futurepft.blogspot.com.

You can check out Royce Elliott on You Tube:

We are getting tickets printed today! Please shoot us an e-mail or give us a call if you’re interested. All are invited. PLEASE let your teacher friends know! We want to get as many voters there as possible!!! (309) 339-9210.

Endorsement: Beth Akeson for City Council, Third District

Three candidates are vying to be the Peoria City Council’s third district representative: Beth Akeson, Kelley C. McGownd-Mammen, and Timothy D. Riggenbach. There is a primary on Tuesday, February 24, to narrow the choices down to two. The Journal Star Editorial Board is correct in their endorsement of Akeson and Riggenbach for the primary.

Beth Akeson and her familyI’m going to go a step further, though, and give you my endorsement for the general election, which will be April 7. I’m endorsing Beth Akeson for the Peoria City Council’s third district seat being vacated by Bob Manning.

Motivational speaker Joel Barker once said, “Vision without action is a dream. Action without vision is simply passing the time. Action with vision is making a positive difference.” This is what sets Beth Akeson apart from the other candidates: She has that rare combination of action with vision. And she will make a positive difference for the citizens of Peoria, especially in the third district.

Vision

First, Beth has a specific vision for the future of Peoria. It’s a vision that’s shared by many because it was shaped from lots of public input. The Heart of Peoria Plan was formed through a public process that included hundreds of participants: residents, business owners, city staff, and other stakeholders. Unfortunately, many candidates and even council members have not read the Heart of Peoria Plan or taken the time to really understand the vision that Peoria’s residents have developed. The result has been a lot of action without vision.

Beth Akeson has gone beyond simply reading the Heart of Peoria Plan. She has done extensive study on urban design. An understanding of how cities work gives her a strong foundation from which to make decisions. It allows her to see how the little decisions made today will impact the future of the city. It allows her to see through expensive, ineffective “magic-bullet” theories for city revitalization and focus on long-term, time-tested methods of urban planning that will lead to real revitalization.

An important part of Beth’s vision is the principle of inclusion and consensus-building. The reason why the Heart of Peoria Plan has wide support is because of the process that was used to develop it. It was an inclusive process. All the stakeholders had a seat at the table from the beginning. Every participant’s concerns were heard and taken into consideration. The final plan was worked out through consensus-building among these stakeholders.

Beth’s vision for representing the third district is the same. She believes in giving residents a seat at the table early in the decision-making process so their concerns can be heard and have an impact on the final outcome. Most projects in the city are presented for public input too late in the process to make any difference at all (for example, the recent downtown hotel project). Beth would work to change this culture of exclusion to a culture of inclusion.

Action

If there’s one thing I’ve learned about Beth from working with her on the Heart of Peoria Commission, it’s that she works hard. She took her appointment seriously and did a tremendous amount of research on the issues that came before the commission. She made phone calls, visited sites, sought out expert advice, talked to people who lived in affected areas, and more importantly, listened. Beth is a good listener; she seeks first to understand, then to be understood. I can tell you that I’ve personally witnessed this time and again — with city staff, business owners, residents, and other commissioners (including myself). She will bring this same level of commitment to her role as a city council member.

The Chairman of the Heart of Peoria Commission, the late Bill Washkuhn, recognized Beth’s hard work on behalf of the commission. He encouraged Beth to take her efforts to the next level. In an e-mail he wrote just this past December, he said, “Beth, continue to direct your energies toward the betterment of Peoria. Run for City Council.”

I lived in the third district for eleven years, from 1994 to 2005. It’s a diverse district with very diverse needs. I sincerely believe that Beth Akeson is the candidate that will make the biggest positive difference for her district and the city at large. I hope you’ll vote for her.

Fact-checking museum claims

On February 17, Greg Batton and Dan Diorio talked to Bradley professors Dr. Robert Scott and Dr. Joshua Lewer on the Greg & Dan Show on 1470 WMBD (listen to an .mp3 of the interview here). The two professors volunteered their time to conduct an “independent economic analysis” of the proposed downtown museum project. Let’s take a look at what they had to say.

As the interview began, one of the first topics they hit on was projected attendance at the museum. In response to Dan Diorio saying that museum attendance is down across the country, Dr. Scott countered, “Actually, most everything’s down a bit this year because of the recession . . . but there’s more museum attendance in the United States than there is at all athletic events combined.” He followed up by saying, “So, if you think about all of the activity that’s so prevalent on TV athletic events, there are a lot more people going to these kinds of venues.”

Museum attendance figures are relatively easy to come by; the American Association of Museums (AAM) website states that “American museums average approximately 865 million visits per year,” based on a 1999 study. But the tricky part is defining what is meant by “all athletic events combined.” A November 24, 2008, NPR story regarding museums gave this example, which corroborates Dr. Scott’s statistic:

If you add up the attendance for every major-league baseball, basketball, football and hockey game this year, the combined total will come to about 140 million people. That’s a big number, but it’s barely a fraction of the number of people who will visit American museums this year.

Museums are big business, attracting billions of tourist dollars, advancing science, and educating and amusing more than 850 million people annually.

As impressive as that comparison sounds, it’s not a fair comparison. The total attendance for major-league baseball, basketball, football, and hockey games more specifically comes to 139,474,548, according to figures available on Wikipedia. But there are only 122 teams (32 NFL, 30 MLB, 30 NHL, and 30 NBA). If you divide that out, you’ll see that it comes to an average attendance of 1,143,234 people per team. In comparison, according to both the AAM and NPR, there are 17,500 museums nationwide. If you take the 865 million visitors reported by the AAM and divide it by the number of museums, it comes out to an average attendance of just 48,914 people per museum. And we won’t even get into the fact that museums are open year-round, whereas sporting events have a limited number of games per season.

Next, Dr. Scott said, “And here in Peoria alone at Lakeview, they get over a hundred thousand — something like 110,000 — attendees a year.” This is difficult to verify. In a May 2007 presentation included in material the museum gave to Peoria County, the Museum Collaboration Group said Lakeview’s past four-year average attendance was 87,000. On the other hand, Lakeview Museum’s website now says they get 125,000 visitors per year. So, who knows what the real attendance figure is?

Next up, the John Deere Pavilion: Dr. Scott said, “They [John Deere] get over 200,000 attendees a year.” County Board Member and blogger Merle Widmer called the manager of the John Deere Pavilion and asked for their 2008 annual attendance. She said it was 175,000 to 180,000.

In fairness, Dr. Scott did say later in the interview, “Joshua [Lewer] and I did not go into a detailed analysis of the attendance. We talked to the people who had done the detailed analysis.” So his information is only as good as what was given to him by “the people who had done the detailed analysis,” which would be the museum group.

But here’s the problem: if the economic analysis was substantially based on attendance numbers provided by the museum folks, then the deck was stacked from the beginning. The success of the museum is inextricably tied to its attendance forecast. If they don’t get enough visitors, they can’t operate in the black, and the economic impact would be lower as well. By accepting the museum’s high attendance predictions, they’re conceding that the museum will be successful before they even start the economic impact study. It should come as no surprise that a rosy economic forecast resulted from optimistic attendance figures.