RF tax-cap prevents home rule excesses

Tuesday, September 18th, 2012 10:00 PM

Jim Winikates

In November, River Forest residents will be asked to consider whether the village should adopt "home rule." Home rule gives local residents increased ability to find local solutions to local issues. Currently, the village's powers are limited to what the state of Illinois provides for local municipalities. Home rule communities are exempt from various regulations and may exercise a greater range of responsibilities for the welfare of their residents.

There have been some objections raised by those who oppose home rule and, unfortunately, several inaccurate and misleading claims about the potential effects of home rule. These deal principally with the village's ability to ignore real estate "tax caps" and incur debt. "Tax caps" refers to the Illinois law that prohibits a non-home rule community such as River Forest from increasing property taxes by more than the increase in the Consumer Price Index (CPI) or 5 percent, whichever is less.

The village has adopted an ordinance that requires the village board to abide by the tax cap limitations it presently has as a non-home rule community in the event it becomes a home rule community. Thus, if home rule is approved by the voters, the village's share of a resident's property tax will be no greater than what it would be if River Forest remained a non-home rule community.

Some may argue that the present or future village boards could change or even repeal this ordinance. That is technically correct. However, the ordinance can only be changed or repealed by the affirmative vote of five of the seven board members, and then only after a public hearing. Unlike many municipalities, River Forest village board members are not professional politicians who depend on their positions for their livelihood. We are unpaid elected residents who contribute our time and energies to maintaining and improving the quality of life in River Forest.

Could the village incur additional debt under home rule that would put a future tax burden on residents? The answer is no. Home rule communities that have incurred excessive debt that are a future burden to residents (e.g. Bridgeview) do not operate under the tax cap ordinance enacted by River Forest. Those communities have been able to borrow because lenders can be assured of being repaid with the municipality's unlimited ability to increase property taxes. River Forest would not have this ability. The effect of the village's tax-cap ordinance is to limit the village's general obligation borrowing ability to what it presently has as a non-home rule community.

As stated above, a non-home rule community's powers are limited to what the state of Illinois provides, whereas home rule communities are not so limited. A non-home rule community is treated by the state of Illinois like a child who can only do what its parent (the state) permits. A home rule community is treated like an adult by the state of Illinois.

By adopting the tax-cap ordinance, the River Forest village board has demonstrated that it can act like an adult. If we can act like adults in River Forest, then we should be treated like adults by the state of Illinois.

Additional information on the home rule referendum can be found on the village's website (www.vrf.us).

Jim Winikates is a River Forest trustee and chair of its Finance & Administration Committee.

Reader Comments

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Enuf is Enuf OP

Posted: September 22nd, 2012 9:47 PM

Home rule - The power of a local government to adopt its own land-use regulations and charge any fee and any tax that is not specificlly outlawed by Statue Statute. So pretty much is the definiton of "giving" away the kitchen sink. OP continues to give inside deals to developers, and look where it has gotten us. RF you all should wise up while you still have the chanc

John - River Forest

Posted: September 21st, 2012 6:46 PM

Home Rule - know I am late to comment on this, but just heard. Chicago - being a Home Rule community, will be chargeing a $5 head tax on all those who work or live in Chicago. For what? It is called for heath and safety - and to pay for police. Hey - this is likely just thetype of stuff our Village is looking to use on us. It said a home rule community can charge any fee or tax that the State of Illinois does not expressly prohibit. So, the Sky is the limit.

Ooops

Posted: September 19th, 2012 10:34 PM

Plus, some state lawmakers have deep ties to town borrowing. Our state Sen. Harmon, D-Oak Park, is a lawyer specializing in municipal finance. The law firm Harmon works at was paid for work on one of the bond deals that helped send Bellwood deep into debt. So, this whole state, including the Villages asking for home rule are deep in this debt trick.

Claudio from River Forest

Posted: September 19th, 2012 9:55 PM

Greg - Mr. Winikates has s plan, he is stepping down in May - as stated in the paper. Furthermore, his plan is - just pass HR and after it passes he will tell you why it was the right thing to do - just before he leaves office. But please, do not ask any questions.

Charles from RF

Posted: September 19th, 2012 7:43 PM

@Bruce Home Rule article written by the Winikates is an attmept to divert attention. The author, a self-professed Financial expert,knows better than what he writes, trys to tell the Taxpayers - DO NOT Worry! The tax cap ordinance will prevent Developer Loans - oh no it will NOT & he knows it!! HR communities can devise ANY & all methods they want to pay back the Bonds for loans to developers. A host of fees, additional taxes are another. The taxpayers are on the hook & that will not change.

Greg from RF

Posted: September 19th, 2012 7:11 PM

Mr Winikates please answer the following question with a simple yes or no...can a future RF board repeal the tax cap law by a simple majority? I am pretty sure they can. So really this law does not have protection because if 4 members want to they can just repeal the law. A small community that has many uncontested elections need not give this extra power.

Bruce in RF

Posted: September 19th, 2012 7:10 PM

OK. So with the new ordinance you can't raise the tax cap and you can't borrow any more than you can now. Same as without HR. So what will you do? We all know that a head tax on the universities isn't going to happen and a gas tax that affects 2 gas stations won't matter much. Why is it so critical to have HR? Philisophical state/parent arguements don't cut it, Jim. As Chair of the Finance Committee you of all people should have a plan. What is the plan if you get HR????

Done from Oak Park

Posted: September 19th, 2012 9:06 AM

ahhhhhhhh.............ahhhhhhhhhhhhhhhhhh........ahhhhhh...............bullsh$t! Gesundheit!

Laura Perna

Posted: September 19th, 2012 8:08 AM

Glad the Journal posted an opposing piece to the one published last week whch had several inaccuracies on the supposed pitfalls of Home Rule. IMO, this article was an accurate, fairminded review of the benefits of Home Rule. Good community journalism WJ.

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