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Responsibly Eliminating the Village Property Tax

As most residents know, the Village of Schaumburg levied a property tax in 2009 for the first time in its history. We were told that the new Village property tax was necessary to preserve essential Village services in the throes of the 2008 financial crisis. While reasonable minds could disagree in 2009 over the necessity of a Village property tax, there can be no disagreement today that the financial bases for arguments in favor of the Village property tax are eroding.

Let’s take a look at the math:

In the year ended April 30, 2008 (FY2008), before the property tax, the Village of Schaumburg had general revenues of $95,883,448.[1] Adjusted for inflation, this is the equivalent of $105,167,938 in today’s dollars.[2]

In the year ended April 30, 2014 (FY2014), the Village of Schaumburg had general revenues of $108,347,842, including property tax revenue of approximately $21 million.[3]

If we subtract FY2014 general revenues (i.e., $108,347,842) from FY2008 inflation-adjusted general revenues (i.e., $105,167,938), we are left with an excess of $3,197,904 in FY2014—meaning, the Village property tax levy is $3,179,904 higher (or 15% higher) than it needs to be in order to keep general revenues the same in FY2014 as compared to FY2008.[4]

Consequently, as Schaumburg Village Trustee, I will call for an immediate 15% reduction to the Village property tax levy, saving Schaumburg residents $3,179,904 next year, or approximately $100 per household.[5]

In addition, over each of the next four years, I will work to identify savings of one cent on every dollar of Village spending, allowing the Village to completely eliminate the Village property tax by 2020, saving Schaumburg residents approximately $21 million each year, or approximately $600 per household.

 

Village Term Limits Referendum

Jim Moynihan supports a ballot referendum where Schaumburg voters will decide whether to limit Village officials to serving three consecutive terms, or 12 years.  While Jim respects the current Village incumbents and appreciates their service to the community, Jim believes elected officials are more responsive and accountable to their constituents when their terms are limited and there is regular, healthy turnover in their positions.

Since 1991, only one new Village Trustee has been elected (in 2009). Collectively, the incumbent Trustees have served over 100 years on the Village Board.

Jim believes this is too long for a healthy democracy and believes Schaumburg voters should decide via ballot referendum whether to limit Village officials to serving three consecutive terms, or 12 years.

 


[1] Village of Schaumburg, Illinois Comprehensive Annual Financial Report for the Year Ended April 30, 2008, available at http://jimmoynihan.net/wp-content/uploads/2015/01/Village-of-Schaumburg-Financial-Statements-FY2008.pdf.

[2] United States Department of Labor, Bureau of Labor Statistics, CPI Inflation Calculator, http://data.bls.gov/cgi-bin/cpicalc.pl.

[3] Village of Schaumburg, Illinois Comprehensive Annual Financial Report for the Year Ended April 30, 2014, available at http://jimmoynihan.net/wp-content/uploads/2015/01/Village-of-Schaumburg-Financial-Statements-FY2014.pdf.

[4] The population of the Village of Schaumburg has remained steady, or even slightly decreased, since FY2008, so this increase in revenues (and spending) cannot be attributed to population growth. Village of Schaumburg, Demographics, http://www.ci.schaumburg.il.us/EDevel/EDev/Pages/Demographics.aspx.

[5] As of the last census, in 2010, the Village of Schaumburg had 33,610 households. See Village of Schaumburg, Demographics, http://www.ci.schaumburg.il.us/EDevel/EDev/Pages/Demographics.aspx.


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