Part 2 in a Series.
Sales Tax Revenue in Lisle has been Falling for Years and Years...
On January 16, 2014, Lisle Mayor Joe Broda gave a 45 minute "2014 State of the Village" address at a Lisle Chamber of Commerce luncheon held at the Hilton Naperville-Lisle hotel.
The cost for a Lisle resident to attend the midweek event was $35 per person. Taxpayers picked up the $1000 tab for 41 elected officials, government employees and guests to attend the event. About 50% of the attendees had lunch on the taxpayers.
You can watch the edited version of the speech on You Tube .
10 Things Mayor Broda Failed to Tell the People of Lisle:
#1. The Village has no master plan to fix the river levees and no stormwater management plan to address a 100 yr flood. LINK to Part 1.
#2. Sales Tax Revenue in Lisle has been Falling for YEARS and YEARS..
Mayor Broda misled the people of Lisle with his statement at the "State of the Village of Address" when he said the village is in "sound finanical footing" due to "wise financial stewardship."
Broda briefly mentioned the "downward trend in sales tax revenue due mainly to a loss of car dealerships."
Lets take a look at the "downward trend" in sales tax revenue since Broda took over as Mayor in 2001.
According to The Village of Lisle's 2013 Comprehensive Annual Financial Report (CAFR) for the fiscal year ending April 30, 2013:
- "There was a 3.13% decrease in General Fund sales tax [revenue]."
When sales taxes revenue falls, the Village has to cut spending and/or find other sources of revenue.
Sources of Revenue:
FY Ending April 30, 2013 FY Ending April 30, 2007
36% Other Taxes 26% Other Taxes
26% Property Tax 16% Property Tax
20% Sales Tax 21% Sales Tax
11% Charges for Services 24% Charges for Services
4% Operating Grants 3% Operating Grants
2% Miscellaneous Revenue 2% Miscellaneous Revenue
1% Capital Grants 9% Investment Income
For FY 2013 Per the CAFR, Village increased property taxes (and other taxes, but we will cover that in Part #3) to make up the ever increasing shortfall in sales tax revenue.
- "Property tax revenues increased by 3.31% due to an increase in the tax rate of 9.16% and new construction."(1 year period)
- "The tax rate increased from .3997 in 2010 to .4289 in 2011. The tax rate increased again from .4289 in 2011 to .4682 in 2012." (17.14% rate increase in 2 years; 28.31% rate increase in 3 yrs)
Mayor Broda continues to mislead Lisle residents by telling us that the causes for falling sales tax revenue in Lisle are due to the economy and due to loss of car dealerships. The fact is that sales tax revenues were already falling before "great recession " of 2008 and before the car dealerships started to leave Lisle.
History of Lisle Annual Sales Tax Revenue (Ref: 2013 CAFR page 104)
- 1999 $ 6,408,857
- 2001 $ 6,280,953
- 2003 $ 5,523,619
- 2007 $ 4,664,875 (16% less than 2003)
- 2012 $ 3,806,667 (31% less than 2003; 41% less than 1999)
While Lisle saw a 31% drop in the amount of annual sales tax revenue collected from 2003 to 2012, and an additional drop of 3.3% the next year, Naperville reported 30% INCREASE in sales tax revenue from 2003 to 2012, plus an additional 7% increase the next year. (see below)
The old excuse of the economy impacting sales tax revenue just doesn't hold up. The worst of it is that the 2014 sales tax figures (year ending April 30, 2014) will likely be even lower.
Naperville - New record for sales tax revenue
The following are excerpts from the City of Naperville's 2014 budget document:
- "All of the City revenue streams linked to the economy continue to show improving trends and have higher then budgeted collections for FY 2013."
- "Retail sales tax, which is the largest single source of General Fund revenue, has seen a growth of 7% over FY 2012. After falling by 10% during the recession, sales tax receipts recovered to their pre-recession level in FY2012, and FY2013 receipts are projected to set a new record high."
- "With the backdrop of an improving economic environment, Council reached consensus at the first budget workshop in October 2012 to reduce the property tax levy for the third consecutive year.... recognizing the pressure to minimize increases in the property tax rate, Council agreed for third year in a row to reduce the property tax levy dollars."
- "The third levy reduction approved by Council is for a further 2.5% reduction..."
The Lisle Car Dealership Facts:
2013 Infinity of Lisle moves from Lisle to Clarendon Hills.
2010 Naperville Jeep moves from Lisle to Naperville. (*)
2009 Hummer closes. (*)
2004 Acura moves from Lisle to Naperville. (used car store took over Lisle location)
(*) Lisle had a sales tax rebate agreement with the dealer where a portion of the sales tax was returned to the dealer.
If these car dealership businesses were doing well in Lisle, they would not have moved out. Sales tax revenues are not falling because car dealerships are leaving Lisle - car dealerships are leaving Lisle because people are not shopping in Lisle. Car dealers will locate where they will sell more cars. Simple.
How long will it be before Volvo, Honda and Chevrolet move?
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How long will it be before Volvo, Honda and Chevrolet move?
Part 3 of "10 Things Mayor Broda Failed to Tell the People of Lisle" coming soon...
Preview - Lisle's Hidden Stealth Tax on Residents - Telecom & Utility Taxes
Broda fails to inform Lisle residents that the single highest source of revenue for the Village is the tax imposed by the Village on our use of telecommunications and utilities such as natural gas and electricity. 36% of the revenue collected by the Village of Lisle in 2013 was from the "other" sources, including the "municipal tax" on your heating bill (5%), your electric bill (5%) and your cell phone bill (6%) and your internet service bill (6%). The higher your bill - whether through rate increases or increases in usage - the more tax you pay to the Village of Lisle.