There’s an article in today’s Journal Star I just couldn’t let pass without comment.
City officials including Mayor Jim Ardis have … expressed some of their frustrations with other taxing bodies in Peoria — namely Peoria Public Schools District 150 — for increasing its property tax rate while the city avoids similar hikes despite increasing political pressure to do so.
Reporter John Sharp did a good job of covering what I’m about to say, but I just want to emphasize it: The City didn’t raise property taxes because it raised taxes on our natural gas bills. The mayor and city council members can crow all they want about how they didn’t raise our property taxes (and District 150 did), but the truth is that the City will be taking more money out of our pockets next year than District 150.
According to this report, “Under the projected rate next year [for District 150], the owner of a $100,000 home would expect to pay about $1,640, excluding any Homestead exemptions or increase in assessed valuation, an approximately $13 increase [emphasis added] above this year under the same determinations.” In contrast, the natural gas tax is “a 3.5 percent tax on gross receipts resulting in about $33 to $34 more [emphasis added] for the typical residential user each year.” So the average homeowner will only be paying $13 more next year to District 150, but $33 to $34 more to the City of Peoria, albeit by different means. The total dollar increases are also significantly different: the City’s natural gas tax raises $2.2 million in revenue, whereas District 150’s increase raises up to $900,000 in additional revenue.
Furthermore, guess who else gets to pay the natural gas tax? That’s right — District 150! So the council has raised taxes on the school district, and is now complaining that the school district is raising property taxes. To a certain extent, the City is really raising property taxes by proxy. District 150 doesn’t have the ability to tax natural gas, garbage, water, liquor, etc., like the City does. When their costs increase, they have to go to the property owners to get more revenue.
Keeping these facts in mind, consider these outrageous statements from City officials quoted in the article:
“It doesn’t seem like there has been a lot of consideration from the other taxing bodies to continue to (not) increase their portion (of the property tax).” [Mayor Ardis]
“We’re on the edges of a tax revolt in this country…. The bottom line is we have to live within our means. If we have to afford less government, we have to put less government in place.” [Eric Turner]
This from two members of the council who voted to spend $55 million on expanding the Civic Center, spend $37 million to build a hotel (including a $9 million developers fee), give away the $10 million Sears block for $1, give away the $2.8 million Kellar Branch for $1 (and indirectly cost the taxpayers $1.25 million for its acquisition by the Park District), back a $3.3 million loan to now-defunct Firefly Energy (resulting in over $1 million owed by the City)… need I go on?
“If you are a citizen of Peoria and open your tax bill each year, you will see your taxes have been increased year after year…. I do think it’s important we continue on the city side to hold our property taxes away from an increase.” [Ryan Spain]
Apparently, all other taxes are okay to raise. Fees on our water bills, taxes on our Ameren bills, sales taxes downtown, the continuation of HRA taxes to pay for the overbuilt Civic Center — these apparently don’t have any affect on citizens. As long as we “hold our property taxes away from an increase,” then the quality of life here is golden!
A word to the wise: Council members in glass houses shouldn’t throw stones.
I have no issue with taxes or taxes being raised. I DO have issue with the clowns who are spending our money.
Good analysis, C.J. High Peoria taxes might be worth it if city officials also were not bent on destroying historic properties in favor of parking lots. But as taxes go up the city gets uglier.
parking is important… what? You expect people to use public transportation? This isn’t Europe (or New York City… or Chicago… or San Francisco… or Los Angeles) lady.
I have no issue with reasonable taxes in return for well-managed and efficient basic services. However, instead of police, fire fighters and good schools, we see tax money spent on frivolous things like funding failed business ventures and various forms of developer welfare. Time for some real change at the local level.
Eric Turner is a pleasant fellow. The statement he made proves again he is a career politician who has lied to me and the public about his conservative spending many times.
Why does he keep being reelected?
Hmmmmmm.
When I read the article and it said they hadn’t raised taxes, immediately it came to mind “but what about the fees?” They have raised fees on everything they could get their hands on over the past five or six years. Not just a little but in come cases double for silly little things. Its unreal how much it costs us in fees for this or that and now we are deep in debt and we can’t handle anymore taxes so in order to keep up with the Joneses they are going to fee us to death again with the gas tax fee. Hey fellas don’t you get it. We are out of money and we are sick to death of you spending our hard earned money on junk stuff. We don’t need the ruffle on the dresses, we need the dress material first. Get back to basics. What would it hurt Peoria not to start another new project for five years or more? Nothing, but it might benefit us to get all the debts paid off and back to the basic necessities of life.
I could sit here and scream and holler until I run out of breath but its useless. So instead I too am leaving. My house is going on the market in the Spring and I’m leaving not only town but the state. Enough is enough. Find someone else to pay for your stupid ideas.
Oh my god more job killing taxes do you know the city pays snow plow drivers 25.00 an hour why if they have no money they gouge us more natural gas tax more real estate taxes 6 million dollar pay off to their friends
remember all those people who said they always for more taxes which I can’t afford, charge my more tax to those big mouths
A good blog on PJS website from “Stomper”.
http://www.pjstar.com/news/x719365036/City-Don-t-blame-us-for-next-big-tax-bill
What do the rest of you think?
To me, a tax is something that affects everyone…espcially now, with the natural gas tax, which also impacts non-profits.
A fee is something that doesn’t affect everyone, unless they need the
service. Not everyone needs to pay for a liquor or bar license; Not everyone has to pay for a landlord registration fee.
My concern is what happens next year if there is still a projected deficit for 2012, and the economy still hasn’t improved enough to hold off extra cuts?
I don’t know where anymore cuts can be made. At some point, police cars, fire engines & snow plows will need replaced; I’m sure health & property insurance costs aren’t going down for the city.
Dennis sez: “My concern is what happens next year if there is still a projected deficit for 2012, and the economy still hasn’t improved enough to hold off extra cuts?”
Simple, if we elected the same dolts, up the gas fee and up the garbage fee, lay off more police. The safest place in Peoria will then be the Council Chambers.
And to pay approximately $88,000 per year to ILAWC and then another approximately $88,000 per year to Ameren to collect the garbage tax and the natural gas tax is sheer stupidity. That is $196,000 down a rat hole because the city council does not have the intestinal fortitude to raise the property tax rate. In ten years taxpayers will have paid $1.96M unless of course the rate of collection increases too.
As long as the property tax rate is the same and the EAV has any type of increase — when multiplied together = an increase in our property tax paid even for the city.
Where Turner and Spain think otherwise is inconceivable. Basic math!
1. Jim Stowell. The mayor and his ilk are already undercutting JS’s attempt to take a city council seat. that you cant see that is incredible to me.
2. The city KEPT THEIR TAX RATE THE SAME. This means their property tax COLLECTIONS will go up. “We didn’t raise taxes” by “allowing” annual ASSESSMENT growth to drive $$ change is the same as a PTAX increase. How dumb are you people?
Someone reconcile for me how the city can claim they didn’t raise PTAX revenue with their claim they didn’t raise taxes…3, 2, 1…GO
“another guy” — I doubt the Journal Star is shilling for Stowell. And yes, I’m fully aware of the relationship between tax rates and EAV, but thanks for the reminder. It’s important that people understand how that works so they’re not deceived.
“When we say ‘we didn’t raise taxes’, we mean tax rates, of course. We can’t foresee the property assessments… perhaps they will go down.”
And Jim Stowell for city council??? No thank you.
and Randy, you DID hear about the shooting in Panama City, didn’t you? Council chambers aren’t safe anymore.
Wait a minute! Someone is posting using my super-secret Peoria Chronicle code name.
It is New Voice with a capital N & V.
Now I must conduct a purge of everyone in Peoria County.
don’t get confused CJ, I said nothing about the PJS. I specifically spoke to the mayor and his ilk. Who of those in the PJS article are not running for re-election, or have a direct vested interest in who is re-elected? It will be easy for the incumbents to point to Stowell and say, ‘he raised your taxes’, whereas with you, they have no direct fodder.
Stowell was only School Board member to vote against the proposed levy increase.
Charlie, if you were directing the comment to me: Yes I saw that but wasn’t it a school board meeting? Anyway, the nut did us all a favor and killed himself.
BTW, I have always said why doesn’t the city council raise the property tax and balance the budget? People here and elsewhere went nuts when I suggested that but now it seems to be that the council should have just raise PT instead of dreaming up a fee. And, people will forget like the Garbage Fee and Ms Alms also brings to light something I have always said, IAW collects $88 grand to bill the Garbage Fee, what will Ameren want?
All this is just what pocket of money they are picking to take from us. Tax, fee, levy, what ever you call it we pay hard earned money so they can spend it on hotel deal, give away land for a museum, railroad line, and form TIF’s that fail and start new ones that benefit a non tax paying entity. Karrie is right on as to IAW and Ameren once they set up the computers to bill the tax it is pure profit for them. Lets not forget the large amount of cash spent by #150 on the Prospect properties for there school in the park deal and they still have not sold the property. So Peoria city council and mayor don’t tell me that it is rain water when you pee on my shoes.
Interesting, CJ, that you didn’t comment on another big point in that article, and that is the pie charts that show how much money out of a Peoria home-owners tax bill goes to Peoria Public Schools vs. similar communities. For instance, 4.88 dollars per thousand for a Peoria homeowner supports their local schools compared to 2.79 for East Peoria and 2.65 for the City of Pekin. Do you not find that “remarkable”?
The pie charts also don’t take into account that, in addition to the huge chunk of money from property taxes, District 150 also receives huge amounts of Federal money in the form of low-income grants and Title I money.
The pie charts clearly show that out of a typical property tax bill, District 150 gets 4 TIMES the amount of tax dollars allocated to the entire City of Peoria. (4.8 to 1.3) This is way out of wack, and it’s surprising that the otherwise savvy commenters here don’t seem to “get it”.
The City of Peoria has a legitimate beef here and the publics and the Journal Star’s failure to acknowledge it will only give Peoria Public Schools the green light for more over-the-top spending and annual tax increases. Seriously, look at the zone defense played by PJStar on behalf of PPS- a classic “Hey look over there…” trick. It works on my grade schoolers too.
I think the decision to tax a utility as opposed to adding more burden on the backs of property owners was a sound one. Recent economic trends prove that however goes the real estate market, so goes the economy. Our local real estate market is already stifled and higher real estate taxes could easily be the proverbial straw. Stowell in this instance made the right vote but the reasons behind his sudden onset of fiscal prudence are obvious.
District Watcher:
Many of us notice that the money is way out of wack for D150 …. please remember that D150 received $80M (if I my memory is accurate) for the school buildings from the Public Building Commission — so taxpayers are getting further soaked for extras not needed to actually improve the student performance. Please do not get me started on the PBC and SB 2477.
Additionally, IMO, the City of Peoria (COP) has engaged in fiscally unresponsible spending for more than a decade, being beads and trinkets while putting its collective head in the sand avoiding the problems and challenges in Peoria which has allowed expansion of the festering wound. COP has created many TIFS which have not performed as expected which puts further strain on property tax revenue for D150.
A thorough cleaning and accountability and responsibility program need to be instituted to right the ship.
Wondering about Jim Stowell’s record on tax pevy increases, if he has consistently voted against increasing the tax levy or this is an one time event? Just asking to better understand.
Any type of increase is more burden on someone or some entities. To pay $88K per year to ILAWC to collect a garbage fee and then to anticipate spending a similar amount to Ameren to collect the natural gas tax is $176K per year. I would rather the city council got some intestinal fortitude and raised taxes that paying $176K down a rat hole every year for nothing.
IMO, it goes back to not have a vision and plan that comes from the heart of our community that the city council sticks with to fruition. More paramecium behavior and we can see that we are reaping the whirlwind by having no plan and not sticking with our plan.
“it a school board meeting? Anyway, the nut did us all a favor and killed himself.”
Yes… it was a school BOARD meeting. And don’t be so sure he shot himself.
Check out my investigation of t the initial reports. It’s on my blog. The point is, we have a very angry population, a very cocky and unresponsive group of people governing us AND we have easy access to guns and ammo.
This is not a healthy combination.
District Watcher – that pie chart comparison must be in the print edition as it’s not on PJStar.com. I also suspect that it’s wrong. 🙂
You can go to the statewide school report cards and review the tax rate per $100 of EAV by district. D150 serves K-12 and for the most recent fiscal year shown, had a tax rate of $4.5. That’s the same as Morton, Eureka, and less than Springfield ($4.7) and Rockford ($5.4) but more than Dunlap ($4.1) – all of which have a K-12 district (and yes, I know that some Peoria residents are in Dunlap school district, and Goodfield residents go to Eureka, etc. – the point is to compare K-12 districts)
Pekin and East Peoria each have two school districts serving its residents. One for K-8 and one for 9-12. In Pekin, the rate was $2.7 for the K-8 district AND $1.8 for the 9-12 – the total is thus $4.5 (same as D150). In East Peoria, the K-8 district tax rate is $2.9 and the 9-12 district tax rate is $1.9 – for a total of $4.8. (It would appear that the pie chart, as you described it, neglected to include the 9-12 school district tax assessments for East Peoria and Pekin)
And, yes, D150 gets a lot of money from the state and feds. Relative to Morton, for example, which had the same $4.5 per $100 tax rate, the homes in Peoria are on average worth half as much, so the taxes generated from the average home owner for the school district to use would be only half as much for D150. And D150 has a much higher level of low income students and children with disabilities. The state and federal monies are to offset these issues – so as to not overly burden the property taxpayers.
“another guy” — Thanks for the clarification. I see what you mean now.
District Watcher — Yes, the City of Peoria has reduced its reliance on property taxes by shifting the tax burden to other areas, such as sales taxes, utility taxes, etc. It would be very interesting to see how much the tax rate would be if the City had to support its spending on property taxes alone.
I’m not arguing for higher taxes from any public body, and I agree that District 150’s spending is indefensible — particularly their spending on property and administration. My only point was that I find it disingenuous for the City to criticize the school district when the City raised taxes on residents more than twice as much as the district.
Also, I’m sure you know this, but homeowners have to pay utility bills, too. So the City’s tax also puts additional “burden on the backs of property owners.”
You know, high property taxes are a much worse selling point than usage fees.
Who would want to try to sell or maintain their homes on Grand View or High Street or Moss if property taxes went up again.
You know, high property taxes are a much worse selling point than usage fees.
I never thought I would say this but, good point by charlie.
District Watcher said:
“District 150 gets 4 TIMES the amount of tax dollars allocated to the entire City of Peoria. (4.8 to 1.3) This is way out of wack…”
Just curious, but why do you think that’s out of wack? What’s appropriate? 3X? 2X? Why?
Who do you think has a larger operating budget – the City of Peoria, or D150? How much of the City of Peoria’s operating budget comes from property taxes – 25%, 50%, 75%? What’s appropriate?
Why isn’t there an honest conversation about working career/life expectancy/expected benefits? Everybody knows you shouldn’t expect to work 30/retire 30, but nobody raises the rhetoric or advances the tough decisions that must be faced. It is at the core of the financial perils that affect D150, COP, and public services. The current council has already saddled us with operating cost increases. Taxpayers can’t afford the largess.
No you shouldn’t expect to work 30 and retire 30, but I worked 53 and I’d sure like to retire at least 20. But who can afford to live retired 20 nowadays? Taxes, fees, and whatever else they can do to get into your pocket and pick the lint.
“Who do you think has a larger operating budget ”
Who do you think wastes the most amount of money on NOT doing what they were created to do?
Which organization, School District or City, has more abject failure and illegal, criminal activity?
My dad, retired from Cat for nearly 25 years now makes more a month than my wife and I together. (Plus… their house and cars (all credit items) are paid off)
I hear hotel news–Downtown Marriott–is coming in January.
CJ says:
“It would be very interesting to see how much the tax rate would be if the City had to support its spending on property taxes alone.”
According to the 2011 preliminary budget on the city website, expenditures total $179MM compared to revenue from current property taxes of a little less than $28M. As such, it would seem that the city would need to increase the property tax rate over 6X if that were its only source of revenue.
Hey C.J.:
I have finally figured out why the City of Peoria does not care about wasting money and getting deep in debt. Check this out:
http://www.businessinsider.com/cbo-fiscal-stress-faced-by-local-government-2010-12
They figure they will get a banker-style bailout from the feds soon enough.
If that is the case, I have a wish list of projects I would like for Peoria:
1. Expand the zoo 5x the current size;
2. Build a children’s museum at least as large as the Magic House (children’s museum in St. Louis);
3. Build an aquarium that is bigger and nicer than the Shedd (in Chicago);
4. Build a ballroom to replace the HUB (which no longer exists);
and
5. Bulldoze run-down neighborhoods and make large neighborhood parks.
I would hate to see Peoria declare bankruptcy with nothing to show for it.
The sky is the limit! Can you add a few more city projects?
“Downtown Marriott–is coming in January.”
And 95% increases in test scores in District 150 are coming in February.
Dist 150- Care to elaborate on the news?
well, we have heard this before, but rumors of a closing on the properties by the Matthew’s group. That would start the ball rolling.
In the Blogosphere Heirarchy of Credibility, admitted rumors come in below rank speculation, which was just edged out by sheer conjecture.
Thanks for sharing.
Info is from a very good source.
Well why didn’t you say so? What you’ve got then is, at best, second-hand insider information, which bests sheer conjecture but still falls well short of actual, first-hand knowledge.
Nevermind. I was giving some info to the blog. I now wish I hadn’t.
“I was giving some info to the blog.”
You were feeding a rumor.
suck it Charlie. You are an asshole.
District 150 Observer IS a good source. Now that he is back at his old new position he will be able to give the blog a lot of info. Don’t piss him off!
What! Charlie said District 150 Observor was spreading a rumor–since he/she didn’t state a source, can’t it be a rumor? Certainly, D150Ob’s response was a bit much in comparison, isn’t it? ACtually, Nontimendum gave the same reaction to the “rumor” but wasn’t called names.
Settle down children. Charlie was jerking a few ‘chains,’ pushing a few ‘buttons’………
nontimendum is busy trying out a new laxative…one that is possbily organic….
99.9% of what we post here is opinion-based, conjecture, speculation, or what ever you want to call it.
Most every ‘rumor’ has a certain element of ‘truth’ behind it.
For example: I am beginning to buy into the ‘rumor’ that the new Peoria Regional Museum will save Peoria from economic ruin……and will be the only building standing on January 02, 2012.
D150: Just having some fun. Wouldn’t surprise me if you end up being right.
NV: Organic laxative? As usual, you’re lost on me.
I am “lost on you?”
I was just having a little ‘fun’ as well. You do know what happens after you take a laxative…? You begin to spew…crap? Do I really have to explain my little joke at your expense?
Organic laxatives are really supposed to ‘clean’ the system.
Anyway…
Thanks for the explanation. My sights were a little high.