City of Morris looks to schoolchildren to pay for Community Landfill cleanup

The City of Morris has scheduled a public meeting for September 22, 2008 to consider an amendment to the Morris TIF District Redevelopment Plan.

The City is seeking to add five parcels to the TIF District, including the Community Landfill property. We can expect that the city will then use some or all of the $9,000,000+ that it has accumulated from TIF to pay for the cleanup of the Community Landfill.

Perhaps anticipating the public's disapproval, the Notice contains additional political commentary unnecessary to the purpose of the notice, making the patently false claim that "TIF DOES NOT raise property taxes"

The city's commentary goes on to explain that..."TIF is used merely to reallocate" increased property tax revenues..."

Indeed TIF reallocates tax revenues - taking the money from schools and other taxing bodies, and giving that money to the city. The tax revenue that would have otherwise gone to the schools must be made up - in the form of over $3,000,000 annually in higher property taxes for everyone.

Opportunity for our schools

Skeptical Morris has finally weighed in on TIF. I do not share Skeptical's defeatist attitude about the use of TIF for the new city hall. The city council is divided on the issue of the new city hall, and it doesn't appear that the mayor has the votes to approve the project in its present form. Two points merit further consideration.

Point Number One:

It is true that the city amended the Redevelopment Plan in 1999 to designate funds for the construction of a new city hall - just days before an amendment to the TIF law that would prohibit such a use. However, the amended plan does not give the city carte blanche to build the city hall. The 1999 amended Redevelopment Plan only earmarked $2.5 million dollars for the project - a far cry from the $14 million or more that is now being estimated, and the nearly $2 million already spent.

This substantial change to the Redevelopment Plan requires consideration by the Joint Review Board, which consists of the members of the affected taxing bodies. There will have to be specific findings that bring the project within one of the limited exceptions to the 1999 ban on the use of TIF money to fund municipal buildings.

If the Joint Review Board dissaproves the change in the redevelopment plan, the city can proceed with the project only on a three-fifths vote of the City Council.

Any TIF funds not expended before the expiration of the TIF term must be returned to the affected taxing bodies. Districts 54 and 101 could recoup millions of dollars diverted from schools to the TIF slush fund.


Point Number Two:

The Morris TIF is set to end in 2009. The city has already approached the school districts asking for a twelve year extension.

When Morris adopted the TIF in 1986, it was sold to the city council, the schools and the public as a means to spur development in blighted areas and ultimately generate additional property tax revenue for the taxing bodies.

The city has demonstrated that it cannot be trusted to use TIF money for its intended purpose.

The school districts have the power to end the Morris TIF in 2009. Let's hope that the school boards do not miss this opportunity to address the financial needs of educating our children, while at the same time bringing much needed tax relief the residents of their districts.



City acknowledges TIF hurdles in this MDH article

Ben Joravsky of the Chicago Reader has authored numerous articles on creative TIF abuses in Chicago. Check out the TIF Archives.

Full text of the TIF law

Seneca school districts win TIF abuse lawsuit

Oak Park school districts demand return of TIF money

Raiding TIF

Spending TIF funds to construct municipal buildings generating no new tax revenue is contrary to the purpose and intent of the TIF law.

In 1999, the Illinois legislature enacted an amendment to the TIF law to end this abusive practice.

Section 11‑74.4‑3 (q)(4) of the TIF law says that:

... on and after November 1, 1999, redevelopment project costs shall not include the cost of constructing a new municipal public building principally used to provide offices, storage space, or conference facilities or vehicle storage, maintenance, or repair for administrative, public safety, or public works personnel....

There are some limited exceptions which would permit a municipal building to be built with TIF funds, such as when it is part of a redevelopment plan adopted before 1999, or when it is replacing a municipal building that must be demolished as part of the redevelopment plan.

The exceptions do not seem to apply with the City's current plans.

Full text of the TIF law

Transcript of debate on the 1999 Amendment to the TIF law in the Illinois House of Representatives.

The discussion on TIF starts at page 239, including definitions for "blight."

Discussion about spending TIF money for municipal buildings starts at page 249. Read as the sponsoring legislators call this practice an "abuse" of TIF.

Morris Daily Herald Article published September 5, 2007

Gardner residents keep out!

According to the Morris Daily Herald, the Village of Gardner held a meeting to discuss the creation of a controversial TIF district. Commissioner Dick Hileman and city attorney Scott Belt were allowed in, but interested residents and members of the media were excluded.

"In fact, Commissioner Hileman locked the door, effectively preventing neighbors and members of the media from entering village hall."

The circumstances in which public meetings can be closed are limited. Doesn't the the village board have to vote to go into executive session? What is it that Hileman and Belt don't want you to know?

Read the complete Morris Daily Herald article

Read about how commissioner Hileman reacts to criticism, in Thomas vs. Hileman

Slick budget maneuver planned?

There is speculation that the mayor will attempt to approve the budget for the upcoming fiscal year at the last meeting of the current city council, rather than at the first meeting of the new city council, as has always been done in the past. The two public meetings will be held back to back on Tuesday, May 1 at 10:00 a.m.

Some aldermen and aldermen-elect are said to have questions about the size and composition of the budget as proposed by the mayor.

Why should the new city council be hamstrung by a budget approved the the old city council? The new city council will have to live with this budget and they should be the given the opportunity to consider and vote on it.

Read about Tax Increment Financing (TIF)