10 Things Mayor Broda Failed to Tell the People of Lisle, Part 2

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?

             - - - - - - - - - - 

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. 

Lisle Park District Seeks to Increase Debt to the Limit; Property Tax to Increase

Bond Issue = Property Tax Increase

Lisle Park District Board of Commissioners is scheduled to discuss and vote on an ordinance that will increase the debt of the District by $1.1 Million and push the debt limit ratio for non-referendum debt to the statuary limit of 0.575. The meeting is tonight, Feb 20, 2014, at 7 pm.

The Park District's non-referendum bond limit is set by State Statute at 0.575 percent of EAV (equalized assessed valuation). Non-referendum bonds are payable from a property tax debt levy and do not require the approval of the voters in the District. The EAV, the assessed value of taxable property in the District, has been falling since 2008. As the EAV drops, the dollar amount of debt the District is allowed to carry also drops.

At the end of FY 2012, the Lisle Park District reported $14.3 Million in total outstanding debt to the State of Illinois Comptroller's Office. The Park District informed Lisle Watchdog that their report for FY 2013 has not been completed. 

A FOIA request seeking information on the use of bond proceeds and the projected debt ratio with increased debt and lower EAV was submitted on Feb 18, 2014 shortly after the agenda with the proposed bond issue was posted online that day. A response has not yet been provided. 

*** Update: As of 5:30 pm on the day of the vote, the Park District did not respond for records that identify the specific capital projects that would be funded with these bonds funds.***   

The debt service tax levy for the Lisle Park District accounts for approximately 25% of the total property taxes levied and collected by the District.

2002 Pool Bonds

Included in this debt service tax levy are taxes to repay bonds that were approved by taxpayers at the polls back in 2002 for the complete overhaul of Sea Lion Aquatic Park. Voters approved a $7.8 Million bond issue to borrow money to renovate the pool and the pool was reopened in 2004. In 2010, the Park District reissued those pool bonds extending the repayment period. The Park District asked voters to support the measure for a defined specific project which would increase property taxes and the voters approved.

2008 $21.9 Million Bond Referendum for New Community Center Fails

In 2008, the Lisle Park District went back to the voter seeking approval to borrow $21.9 Million for a brand new community center. About 60% of the voters said "NO."

2010 $7.25 Million Non-Referendum Bonds

In 2010, still feeling the sting from the rejection from the voter in 2008, the Lisle Park District issued $7.25 Million in non-referendum bonds without asking voters. Portions of the bond issue were used to purchase and renovate an existing office/industrial building in the College Park Industrial Park and convert it to Park District offices and to move the preschool from Meadows to the new building. The building, which was vacated by MicroSun Technologies move to Woodridge, was removed from the tax rolls upon purchase by the Park District further reducing the EAV.

The District did not ask the voters at the polls to approve this new debt (perhaps fearing that the voters would again say "No?")  The District levies taxes annually to pay the principal and interest payments for these bonds in addition to the pool bonds.

2014 $1.1 Million Non-Referendum Bonds - Proposed

The proposed $1.1 Million bond issue on the agenda for tonight's meeting is different than the 2002 Pool bonds.

• The District has not provided taxpayers with an outline of specific capital projects that will be funded by the proposed $1.1 Million bonds.
• The District did not put the question of borrowing more money to the voters at the polls.

Is the Park District borrowing for the sole purpose of having the ability to borrow and raise revenue? 

The District is permitted to use the funds from these bonds for annual "maintenance" expenditures  - expenditures which should be funded, planned and budgeted for in the general operating budget. The regular tax levy, however, is subject to a tax cap. One way for the Park District to raise taxes higher than the tax cap is by issuing new debt. This allows the Park District to utilize the general operating funds to increase salaries/benefits and use the debt funds for annual maintenance.

One thing is the same though.. 

This proposed bond issue will raise both the property tax levy and property tax rate. 

Transparency Issues

Minutes of the Dec 19, 2013 monthly meeting of the Park Board of Commissioners document that a public hearing was called regarding a much lower proposed bond issue of $200,000. 

Is is unclear how the proposed bond amount escalated 5-fold after the hearing to $1.1 Million. (Interesting how these hearings for tax levies and bonds are always held really close to the Christmas holiday making it inconvenient for public participation, isn't it?)


History of Lisle Park District Property Tax Rates for Debt Payments:

Tax Year         Tax Rate for Debt
2003................0.1085
2004................0.1031
2005................0.1006
2006................0.0959
2007................0.0945
2008................0.0931
2009................0.0975
2010................0.1047
2011................0.1144
2012................0.1247
2013................bills to issued April 2014.

Lisle Park District Property Tax Rates are Higher Than Neighboring Communities.

The high property tax rate levied by the Lisle Park District is one reason that property tax rates in Lisle are higher than neighboring towns. 


District                         2012 Tax Rate
Lisle Park District                 0.4875
Naperville Park District          0.3148
Butterfield Park District         0.3544
Downers Grove Park District   0.3853
Glen Ellyn Park District          0.4114


Contact Elected Officials: HERE

Coming Soon...  Lisle Sea Lion Pool Attendance reaches 5 year low.

Taxpayers Pick Up $1000 Lunch Tab for 41 to Attend Broda's "State of the Village" Address

More Waste of Public Funds in Lisle

Lisle taxpayers were stuck picking up the tab for 41 local elected officials, government employees, spouses and guests to attend Mayor Broda's 2014 "State of the Village" address presented at a Lisle Chamber of Commerce 2.5 hour luncheon held at the Hilton Naperville-Lisle on Jan 16, 2014. 

The "2014 State of the Village" address could have been presented at the Village Hall Board room (Lisle's $10M Taj Mahal) in the evening and broadcast live for the convenience of Lisle residents, taxpayers and citizens to attend for free in person or watch it live on cable or internet from home. Not to mention that holding this event at Village Hall in the evening would have allowed all of the boys in Boy Scout Troop 108 ( who were presented with an community service award on a school day during school hours) to attend. 

More than 50% of the people who attended the 2.5 hour event received lunch on the backs of taxpayers. 

A Lisle citizen would have been charged $35 to attend the luncheon event at the Hilton Naperville-Lisle. An edited video of the 45-minute speech portion of the 2.5 hour event was posted online by the Village of Lisle 11 days after the event. The video was later removed from YouTube and re-posted on Feb 4, 2014.

In response to FOIA requests, Lisle Watchdog obtained public records from the Village of Lisle, the Lisle Park District, the Lisle Library, the Lisle-Woodridge Fire District and Lisle Community School District 202 that included the costs for employees, elected officials and guests to attend the 2.5 hour luncheon to hear the 45-minute "State of the Village" address. Each public body was asked to provide the names of those employees who were paid to attend and to provide the documents that contained the public purpose and public benefit of the taxpayer funds expended. 

The Village of Lisle responded that they had no records that contained the public purpose and/or the public benefit of the expenditure of public funds for this purpose. 

Village of Lisle picked up the tab for 28 people:  
   13 Village employees were paid salary to attend during regular work hours.
     7 Village of Lisle Elected Officials (all elected officials except Trustee Mandel)
         (Open meeting violation?)
     9 Guests, including the mayor's wife, an employee from Benedictine University 
         and the scouts/leaders who received an award. 
     Mayor Broda was given a "free" lunch ticket. A gift from the Chamber.   
     * Cost $700.00

Lisle Park District picked up the tab for 4 people:
     3 Park District employees were paid salary to attend during regular work hours.
     1 Park District Elected Official (Buchelt)
     * Cost: $100.00

Lisle Library picked up the tab for 3 people:
     2 Library employees were paid salary to attend during regular work hours.
     1 Library Elected Official (Flint)
     * Cost: $75.00

Lisle Community School District 202 picked up the tab for 3 people:
     1 School District employee was paid salary to attend during regular work hours.
     2 School District Elected Officials. (Alhmann, Narot)
     * Cost: $75.00

Lisle-Woodridge Fire District picked up the tab for 2 people:
     2 LWFD employees were paid salary to attend during regular work hours.  
     1 LWFD Trustee, Tom Althoff attended the event, but LWFD did not pay for 
            his lunch  - Mr. Athoff is the president of the Lisle Chamber. 
     * Cost: $50.00

_____________________________________________________________

                                  TOTAL COST  = $1000.00
 (not including salary/benefits paid to employees to attend a 2.5 hour event)

                                Benefit to Taxpayers = ZERO 

                   Public Purpose of Expenditure of Funds = NONE

_____________________________________________________________


Article VIII Illinois Constitution:

    (a)  Public funds, property or credit shall be used only
for public purposes.
    (b)  The State, units of local government and school
districts shall incur obligations for payment or make
payments from public funds only as authorized by law or
ordinance.
    (c)  Reports and records of the obligation, receipt and
use of public funds of the State, units of local government
and school districts are public records available for
inspection by the public according to law.
(about 10 tables of 7 persons  = 70 attendees)
Records:
Response from Village of Lisle HERE. 
Response from Library HERE.
Response from Park District HERE.
Response from School HERE.
Response from Fire District HERE.

10 Things Mayor Broda Failed to Tell the People of Lisle, Part 1

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.

You can watch the edited version of the speech on You Tube HERE. The video was posted online 11 days after the event.


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. 

Broda stated that the Village of Lisle was caught "off-guard" in April 2013 when heavy rains caused the East Branch of the DuPage River to overtop the levee ... and that's OK because?

Fact of the matter is that way back in 2006 DuPage County issued this report. (more background HERE)

The Village and the County were well aware of the deteriorating condition of the river levee, the desperate need for repair of the levee, the complications of acquiring easements and the need to acquire funding. That was 2006. 

From 2006 to 2013 the Village made absolutely no progress on levee repair. It clearly was not a priority. There was no budget to set aside funds annually to fix the flooding - but millions were spent on "beautification" projects and "the pond."

The Village did not have an emergency plan in place should the river overtop the levee. This is why the Village was caught "off guard." The Garfield pond has no role in mitigating a 100 yr flood. The original levees that are now settled and deteriorating, were designed for a 50 yr flood not a 100 yr flood event. The Village knew that a 100 yr event would overtop the river levee, even if the levee were in good condition. The "pond" does not provide any mitigation for a 100 yr flood event caused by the river overtopping the levee. The pond merely detains stormwater that eventually flows INTO the river.

While we can look back and be thankful there was no loss of life or severe injuries and rightfully praise the efforts of those who worked, volunteered or donated funds and supplies to help in any way, it is unacceptable to stand before the people of this town who pay taxes and say that the Village was caught "off guard" for a known high risk event with potentially devastating consequences.

What actions has the Village taken since April 2013 to prepare for the next flood that overtops the levee? Have easements been acquired, funding obtained, engineering documents completed? Nope.

There is no master plan to fix the flooding underway. 

The "big news" presented at the 2014 State of the Village address is that we now have CodeRed emergency notification service to call you when you are underwater. Why Lisle did not have Code Red years ago is anyone's guess, but its been around since 1998.

Part 2 of "10 Things Mayor Broda Failed to Tell the People of Lisle" coming soon...  

Preview - Sales Tax Revenue in Lisle has been Falling for YEARS. 

Broda would like you to believe that the drop in sales tax revenue in 2013 is due to the loss of 2 car dealerships. Fact is sales tax revenue has been falling for years - long before car dealerships left Lisle.  

Lisle Taxpayers Fund $ Thousands in Print Advertising .. or is it Covert Propaganda?

Since Sept 2012, the Village of Lisle, the Lisle Library and the Lisle Park District have collectively purchased over 90 full pages of paid "advertising" in a relatively new publication called "Neighbors of Lisle." There is no record of any public discussion regarding the need for expenditure of public funds for this for-profit publication in the minutes of the open meetings of these three public bodies. 

Each page of submitted material or "advertising" costs $400 per issue. Collectively, Lisle taxpayers have spent about $36,000 over that past 18 months to provide themselves with so-called "FREE" advertising. No problem spending thousands of tax dollars on unnecessary advertising, but submit a FOIA for a copy of a public record regarding budgets and taxes and your name will be posted online on the "citizen hit list" for using 1 hour of a government employee's time and valuable government resources. Hypocrisy? You bet. 

Some might chose to call this submitted content "information" or "news." 

Others are calling it "propaganda" in a for-profit publication that would likely not exist at all but for the taxpayer funding that props it up. If you run a publication and the primary sources of funding are from government funds, are you influenced to please your advertisers and write what they want written? Of course. 

A detailed review of the content submitted by the Village of Lisle, the Lisle Park District and the Lisle Library shows that all of the submitted content is already available on the websites of those public bodies. In addition, the Lisle Library and the Lisle Park District spend tens of thousands of tax dollars per year printing their own full color direct mailers to taxpayers. In the case of the Lisle Library, that annual printing exceeds $25K and is done on a no-bid contract.  

The bi-monthly print publication "Neighbors of Lisle" claims to be delivered "free" to every household in Lisle, however the borders of the Lisle Library and the Lisle Park District extend beyond the borders of the Village of Lisle into parts of unincorporated Naperville that do not receive the taxpayer funded publication. 

There are no disclosures printed on the pages that are submitted by the Village of Lisle, the Lisle Library and the Lisle Park District that the content is paid advertising funded by taxpayers.   

The "Neighbors of Lisle" publication came under fire recently on Facebook when members of the group of Lisle puppy mill protesters took issue with the recent coverage of pet rescues while ignoring the huge "elephant in the room" - i.e. Lisle's very own puppy mill right on Main Street. A group of animal rights activists have been protesting on Main/Ogden for over a year and calling on the village to take action to prohibit the retail sale of puppies from puppy mills in the Village. The subject of the protests is a retail establishment on Main Street that was named on the list of "Top 100 Worst Puppy Mills" in the country by the Humane Society of the U.S. 

You can read the Facebook responses from "Neighbors of Lisle" HERE.

The local publisher of "Neighbors of Lisle" is Paula Gleason who is also the Chairman of the Lisle Area Chamber of Commerce. Ms. Gleason also works for Bensidoun USA the company under contract with the Village of Lisle to manage Lisle's French Market. Isn't that cozy? 

Perhaps we need a Taxpayer Transparency Act in Lisle that ends covert propaganda and would require that any advertisement in print, online, on radio or television post a disclaimer at the bottom denoting its use of taxpayer funding with the phrase "Paid for at Taxpayer Expense." 

Recommended Reading:
"Covert Propaganda," Cornell Law
Congressman Seek To Lift Propaganda Ban
Publicity or Propaganda, Cornell Law

Lisle Watchdog Predictions for 2014

1. Sadly, 2014 will bring another flood to Lisle. Good news, however, is that the flood will not be as bad as 2013 despite higher rainfalls. Residents will again question the impact of the Rt 53 -St. Joseph's Creek bridge construction as cause for the severity of the 2013 Lisle flood.

2. Although 2014 is not a election year for local government, there will be a change on the Board of  Trustees of the Village of Lisle. At lest one of the 7 members will resign, possibly the mayor. The Village manager will announce his retirement and the finance director will be appointed as the new Village Manager.

3. The Lockformer property will remain vacant for yet another year but interest in using the property for production of medical marijuana will cause controversy.

4. The Lisle Library will plan a $20 Million referendum for a new library (community center) even as more residents switch to reading e-books. Residents will form opposition groups. The library director will resign to take a job in another state.

5. The Lisle Park District will pass its first ever flat or lowered tax levy in December 2014. The park District will sell the land purchased on Leask Lane to a land developer who wants to build more apartments in Lisle.

6. Lisle residents will learn that local governments have been monitoring and tracking personal data.

7. Navistar will file bankruptcy.

8. The puppy protestors will ramp up their efforts, but the Village of Lisle will continue to do nothing.

9. The Village of Lisle will implement another TIF District... On Main Street.. The Village will purchase the closed Marathon gas station and begin eminent domain legal action to take the shopping center on Main St (where Weldon's and that puppy place are located) for the purpose of economic
development.

10. There will be much talk of a "Strategic Plan" in the Village of Lisle in 2014, but there will be no priority or plan to fix the flooding.

12 Days of Christmas in Lisle

On the 1st day of Christmas our Village gave to us…

…one golden opportunity.

On the 2nd day of Christmas our Village gave to us…

...two lost car dealerships 

...and one golden opportunity.

On the 3rd day of Christmas our Village gave to us…

...three rounds of golf, 

...two lost car dealerships 

...and one golden opportunity.

On the 4th day of Christmas our Village gave to us…

...four hundred flooded homes, 

...three rounds of golf, 

...two lost car dealerships 

...and one golden opportunity.

On the 5th day of Christmas our Village gave to us…

...five dozen sick puppy mill puppies, 

...four hundred flooded homes, 

...three rounds of golf, 

...two lost car dealerships 

...and one  golden opportunity.

On the 6th day of Christmas our Village gave to us…

...six million TIF dollars, 

...five dozen sick puppy mill puppies, 

...four hundred flooded homes, 

...three rounds of golf, 

...two lost car dealerships 

...and one golden opportunity.

On the 7th day of Christmas our Village gave to us…

...seven closed meetings, 

...six million TIF dollars, 

...five dozen sick puppy mill puppies, 

...four hundred flooded homes, 

...three rounds of golf, 

...two lost car dealerships 

...and one  golden opportunity.

On the 8th day of Christmas our Village gave to us…

...eight government galas, 

...seven closed meetings, 

...six million TIF dollars, 

...five dozen sick puppy mill puppies, 

...four hundred flooded homes, 

...three rounds of golf, 

...two lost car dealerships 

...and one golden opportunity.

On the 9th day of Christmas our Village gave to us…

...nine percent tax rate increase, 

...eight government galas, 

...seven closed meetings, 

...six million TIF dollars, 

...five dozen sick puppy mill puppies, 

...four hundred flooded homes, 

...three rounds of golf, 

...two lost car dealerships 

...and one golden opportunity.

On the 10th day of Christmas our Village gave to us…

...ten protesters protesting, 

...nine percent tax rate increase, 

...eight government galas, 

...seven closed meetings, 

...six million TIF dollars, 

...five dozen sick puppy mill puppies, 

...four hundred flooded homes, 

...three rounds of golf, 

...two lost car dealerships 

...and one golden opportunity.

On the 11th day of Christmas our Village gave to us…

...eleven flood bonuses, 

...ten protesters protesting, 

...nine percent tax rate increase, 

...eight government galas, 

...seven closed meetings, 

...six million TIF dollars, 

...five dozen sick puppy mill puppies, 

...four hundred flooded homes, 

...three rounds of golf, 

...two lost car dealerships 

...and one  golden opportunity.

On the 12th day of Christmas our Village gave to us… 

...twelve loaded gift cards, 

...eleven flood bonuses, 

...ten protesters protesting, 

...nine percent tax rate increase,  

...eight government galas, 

...seven closed meetings, 

...six million TIF dollars, 

...five dozen sick puppy mill puppies, 

...four hundred flooded homes, 

...three rounds of golf, 

...two lost car dealerships 

...and one golden opportunity.