Tag Archives: Ryan Spain

People are richer in the fifth district

At the last City Council meeting, the council discussed the Pioneer Parkway extension project, which would extend Pioneer Parkway from Allen Road three miles west to Trigger Road, crossing Routes 6 and 91 along the way. The objection was raised that we’ve been unable to adequately maintain the streets we currently have (in all districts, incidentally), and perhaps a better use of our limited funds would be to maintain our current assets before they deteriorate further. In fact, there has been no sealcoating or overlayment of our city streets (not including roads maintained by the state or federal government) since 2009.

In response, Councilman Spain had this to say:

I’ve never been one that really thought that an activity taking place in one part of our community has to come at the expense of another location. And I think we have a lot of things happening in Peoria that are positive for all parts of the city. And to say that a project like this that we’ve been working on for a long time shouldn’t move forward is pretty disappointing to me. And when you think about the activities and successes that we’ve experienced with growth in the northern parts of the city, I think that has been important. That doesn’t mean we should stop our efforts to grow the older parts of the city.

But the reality of our current tax base is that the real estate taxes paid in Councilman Irving’s district are about equal to all the real estate taxes paid in all four other districts combined. And so I think it’s important that we acknowledge that, and I appreciate your leadership on this issue, Councilman, and I think this will be another project that is important for the city and something that’s used to sustain services throughout the city so that we can continue investing in all parts of the community.

I first wanted to find out if it’s true that the fifth district generates 50% of the City’s real estate tax revenue, so I went looking for some sort of report that breaks down real estate tax receipts (or at least equalized assessed valuation information) by city council district. I checked with the Finance Department, the County Assessor, the City’s Planning & Growth and Economic Development departments, and even the Heartland Partnership — none of them had such a report. So I asked Mr. Spain how he came up with his figures, and he was kind enough to provide me with a detailed explanation:

My comments are based on preliminary work we have been doing with available EAV [equalized assessed valuation, or property value] information. The current EAV in the City is more than $2B. The D150 [Peoria Public Schools District 150] EAV is about $1.4B, about 70% of the total City. In Peoria, council districts 1-4 are almost exclusively within D150 (The exception to that is a small part of the 4th in Limestone). So at a maximum, the total real estate taxes of districts 1-4 is 70% of the City total. But we also know that there are large areas of the 5th district that are also in D150. Neighborhoods like WeaverRidge, High Point, Hawley Hills, Edgewild, Lynnhurst, Huntington, Oak Crest, and Charter Oak. I’ve attached a map that overlays our current council districts with Peoria County school districts -its a pretty good sized area of the 5th district that is still part of D150. We think there is enough property included in both the 5th district and D150 to represent about 20% of total City EAV.

Plausible, but I don’t know that I’d put it on the record as a fact without qualification the way Spain did at the last meeting. His analysis is based on some big assumptions. And, ultimately, it won’t matter much once the district boundaries are redrawn in a few months.

The bigger question is, what difference does it make? The issue at hand was whether we should use our limited funds to build a new road or maintain our existing roads. Existing roads are in poor condition all over the city — including the wealthy fifth district. I’m unclear as to what the relative wealth of the fifth district had to do with the item under consideration.

Mr. Spain, who lives in the fifth district himself, says he doesn’t think “an activity taking place in one part of our community has to come at the expense of another location.” True, but nobody said it does. Money given to one project, however, does indeed come at the expense of another project. Money spent on new city logos can’t be spent on police or fire protection. Assets given away for the downtown museum and hiking/biking trails cannot be used to generate tax revenue. And money spent on a study to extend Pioneer Parkway can’t be used to sealcoat existing streets.

Mr. Spain was no doubt trying to make the point that this proposed new road would open up more land for development, which would generate more tax revenues, which could then be used to benefit the whole city. And he probably was trying to say that finishing the study puts the city in a position to take advantage of state and federal grants for road construction (i.e., it makes the project “shovel-ready”). Those are reasonable, if not persuasive, arguments.

Unfortunately, what Mr. Spain actually said was, “the real estate taxes paid in [the fifth] district are about equal to all the real estate taxes paid in all four other districts combined” and that “it’s important that we acknowledge that,” which sounds like class discrimination, pure and simple. I don’t think he meant it that way (at least, I hope not), but I do think it was a poor choice of words.

In his e-mail to me, Mr. Spain also said one other thing in his defense, so I’ll give him the last word in this post: “Since it was not mentioned in your live blogging, I want to reiterate my position that investment in older parts of the City is just as important as investment in growth areas. I’ve really worked hard to find dollars for the older areas of the City -I was disappointed you didn’t acknowledge that.”

Temporary is a long time in Peoria

Since April 9, 2008, the Heartland Partnership has been conducting business in the former Damon’s restaurant at Riverfront Village with only a “temporary” Certificate of Occupancy. Councilman Gary Sandberg was tipped off that the building may be occupied without a Certificate, so he sent a FOIA inquiry to the Inspections department and discovered there was no Certificate on file.

Heartland Partnership is the employer of Councilman Ryan Spain, so I contacted him about it. He did some research and informed me via e-mail that “[t]he City has located a temporary certificate of occupancy dated April 9, 2008. Evidently, the employee that conducted the inspection has retired and there is incomplete information in the file.” Later, he added that “the final certificate of occupancy was awaiting signature from the fire department. The contractor and tenant requested a final inspection, which lead to the temporary certificate of occupancy on April 9, 2008. The inspections department coordinates this final step with the fire inspector.”

Inspections Director John Kunski said he couldn’t piece together exactly what happened because it was too long ago. It could be that the building inspector (now retired) didn’t notify the fire department, or that the fire department was notified but an inspection was never conducted for some reason. No one really knows (or will admit) who dropped the ball. Kunski says his department is the “gatekeeper” of the certificate-issuing process, but each department (e.g., fire department, planning/zoning department) is responsible for conducting its own inspection. If a department doesn’t follow through, Inspections “[doesn’t] have a system to flag it.”

The practice of issuing temporary Certificates of Occupancy was instituted under former City Manager Michael McKnight as a way to make the City more “business-friendly,” according to Kunski. But he said that it’s difficult to get compliance once a building is occupied. He would like to see the City require a deposit — $500, for example — that would be put in escrow and refunded once the permanent Certificate of Occupancy is issued.

According to the City of Peoria’s website, “a temporary or partial Certificate of Occupancy good for period up to eight (8) months for any building or structure” may be issued under certain conditions. However, the City Code, section 5-77, doesn’t specify a time-frame; it only says, “Upon written request, the code official may issue a temporary certificate of occupancy for the use of any building or structure prior to the completion and occupancy of the entire building or structure, provided that such portion or portions shall be occupied safely prior to full completion of the structure without endangering life or public welfare.” Kunski was also unaware of there being any time limit set for a temporary Certificate of Occupancy.

Kunski said that there were “no life/safety issues” at the Heartland Partnership building, or else a temporary Certificate would not have been issued.

Don’t be fooled by empty rhetoric from City officials

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.

So far, five people are definitely running, and two definitely aren’t

City Council hopefuls have six days to file petitions to be placed on the ballot. Today, five candidates filed:

  • Ryan Spain (incumbent)
  • Eric Turner (incumbent)
  • Chuck Grayeb (former councilman)
  • Chuck Weaver (Zoning Board of Appeals chairman)
  • Jim Stowell (District 150 School Board member)

Two incumbents are definitely not running:

Potential candidates have to collect a minimum of 165 signatures to be placed on the ballot, and they have until 5 p.m. next Monday (Nov. 22) to file. Incumbent Gary Sandberg is expected to file at 4:59 p.m. on Nov. 22, as is his usual practice. He likes to be the last name on the ballot. As for who will be first on the ballot — we’ll find out tomorrow. It will be one of three people: Spain, Weaver, or Grayeb. They filed at the same time, so their names will be placed in a lottery to determine their order on the ballot.

If more than 10 people run, there will be a primary on Tuesday, February 22, 2011. The general election will be held Tuesday, April 5, 2011.

Add Spain to the list

The Journal Star reports that Ryan Spain announced he’ll be running for reelection to the Peoria City Council.

“The city of Peoria needs leadership that is not afraid to make difficult decisions to position Peoria for the years ahead,” Spain, who was first elected to the council in 2007, said in the news release. “This means living within our means, streamlining services and investing in the future.” […]

Spain said he pledges to continue to “work hard to improve economic competitiveness” of Peoria and stimulate economic development and job growth.

Mr. Spain voted to continue funding ArtsPartners, advocated for development of regional branding (just imagine how much that would cost), and voted to give an East Peoria developer nearly $40 million to build a private hotel next to the Civic Center with an attached pedestrian bridge. Living within our means, indeed.

No regional brand?! Oh, we’ve got trouble, my friends!

Ryan Spain and the Heartland Partnership are cooking up a new idea:

The idea behind the project is to brand the Peoria region with a tag line and, perhaps, another logo.

It would be a comprehensive approach to selling the region to tourism groups and those who could come to Peoria on business, Spain said.

“I would argue we don’t have anything now,” he said. “The timing and the urgency for creating a brand for our region … if we don’t have one, we run the risk of someone doing it for us. It may or may not be what we want to be known for.”

You gotta love marketing people. Urgency? Risk? Peoria County was established in 1825; Tazewell County followed in 1827, and Woodford in 1841. From that time to the present we’ve never had a regional brand. But now, suddenly it’s urgent to brand the region, and we’re at risk if we don’t!

This kind of exaggeration reminds me of someone… a salesman I heard once. Ah yes, I can just hear Mr. Spain explaining this dire situation to the town leaders now:

“Either you’re closing your eyes to a situation you do not wish to acknowledge or you are not aware of the caliber of disaster indicated by the absence of regional branding in your community. Well, ya got trouble, my friend, right here, I say, trouble right here in River City, with a capital T that rhymes with B that stands for Brand!

“Leaders of River City! Heed the warning before it’s too late! Watch for the tell-tale signs of having no regional brand! When you talk to out-of-town clients and say you’re from Peoria, do they ask ‘Where’s that’? Do the bloggers in your community make their own sarcastic logos of the region? Does Rocco Landesman not know that there is a Civic Center in your town?

“If so, ya got trouble, my friends. Yes, ya got lots and lots of trouble — with a capital T that rhymes with B that stands for Brand!”

Perhaps he can institute The Think System, where he gets everyone to just think that “it’s better here” in Peoria and they start to believe it. Oh wait, someone’s already tried that one…..

Civic Center will “think about” freezing wages

The Journal Star reports that “The Civic Center Authority on Thursday approved an approximately $8 million 2010 fiscal year budget that calls for across-the-board 2 percent wage increases” (emphasis added).

So, let me see if I have this straight: The fire fighters won’t get a raise. And the library staff won’t get a raise. And exempt city staff won’t get raises. And the city is asking the police department to give up their raises. But the Civic Center, which didn’t even pass a balanced budget (“The budget’s approval includes a $115,000 operating budget deficit”) is going to give raises to their workers?

But wait — it gets better:

At-large City Councilman Ryan Spain informed authority members that governmental bargaining unions throughout the city are being asked to forgo pay raises next year in order to help deficit-laden organizations patch their budgets…. Commissioners requested the Civic Center’s management firm, SMG Corp., consult with the finance committee about reviewing the possibility [emphasis added] of freezing the wage increases. Commissioner Ken Goldin requested the review be taken after Spain made his comments.

“We are not saying the raises are not coming,” Goldin said. “We want to think about it and review them.”

A couple of things bother me about this. First of all, they don’t know about the city’s budget issues until Ryan Spain tells them? These guys are really on top of things. I wonder if they’ve heard yet that Michael Jackson is dead.

Secondly, they’re going to think about freezing wages? You know, back on August 11, the city council had a motion on the floor to renegotiate the city’s intergovernmental agreement with the Civic Center — that is, to redirect part of the HRA tax revenue from the Civic Center to the City’s general fund. Ryan Spain made a substitute motion “to engage Civic Center Authority in further discussion over the next four weeks” as the council’s liaison. My guess is, if Spain is unsuccessful in getting concessions from the Civic Center Authority through the softball approach, the original motion may make a reappearance at a future council meeting.

Also, as an aside:

“This is the only area I see a concern in the budget,” said Spain, the City Council’s liaison to the Civic Center Authority.

Really? The $115,000 operating budget deficit wasn’t an area of concern? You’d think after 27 years, there might be some concern over the fact that the Civic Center is still losing money.