Politics & Government

Clarendon Hills Committee Explores Home Rule

The village hopes to have a referendum on the March 2012 ballot that, if passed by voters, would give municipal government additional powers.

The Village of Clarendon Hills Home Rule Research Committee met at Village Hall Thursday night to clear up questions the 10-member committee had from their June 9 initial meeting. 

After two and a half hours passed and numerous skeptical opinions were voiced, the group adjourned and set a tentative third meeting for August.

According to Village Manager Randy Recklaus, the village is bringing forward the idea of home rule—which allows municipalities to exercise powers outside those set in the state's constitution—to "identify additional revenue sources."

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"In our budget discussion this year, [village staff] showed the village board we had this problem with revenues and expenditures crossing and our reserves running out over the next few years," Recklaus said. 

Because it's important for the community to understand home rule, the village manager thought it important to get the input of a volunteer public committee that includes a "cross-section" of Clarendon Hills.

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Among the committee members are former village board trustees Don O'Toole and Ann Schenck.

"There are some former trustees; there are some residnts at large; and there are some municipal attorneys," Recklaus said. 

Current trustees Ed Reid and Paul Pederson represent the village board on the committee. 

According to the Illinois Constitution, any municipality with a population of 25,000 is automatically a home rule municipality.

“Other municipalities may elect by referendum to become home rule units,” Article VII, Section 6 of the Constitution reads. “ … a home rule unit may exercise any power and perform any function pertaining to its government and affairs including, but not limited to, the power to regulate for the protection of the public health, safety, morals and welfare; to license; to tax; and to incur debt.”

Among the economic tools the village could employ with home rule status, according to finance director Peg Hartnett, are a sales tax increase and food-and-beverage tax increase, a demolition tax on developers, a real estate transfer tax, and a road improvements advantage that would bypass costly establishments of special service areas.

The tools could potentially help the village keep its general fund above the required 40-percent-of-expenditures line.

If annual village revenues stayed flat, according to village documents provided to the committee Thursday, the general fund would fall below 40 percent funded at the end of 2014 and would be -103 percent funded ($10,000,000 in the red) by 2020. 

At 7.25 percent, Clarendon Hills currently has the lowest sales tax rate among its surrounding communities. A one percent sales-tax raise across the board—which Recklaus said is not likely because of existing one-percent tax raise on some businesses—would provide the village approximately $200,000 in additional revenue annually. If the village brought all businesses up to 8.25 percent and left the existing raises in place, $130,000 in additional revenue would be raised. 

Recklaus said the village board has made effective cuts in recent years.

"They don’t feel that they would be able to make significant further cuts without changing quality of life and services provided," Recklaus said. 

The committee has its home rule skeptics. John Czerwiec admitted during Thursday's meeting to be one.

Czerwiec said he thought a lot of municipalities put in place home rule before the state eased sales tax regulations and food and beverage tax regulations. Then, Czerwiec said, home rule was the only way to raise those taxes.

"Now there’s whole host of things—that probably did come originally out of home rule—that the state legislature applies," Czerwiec said. "So what’s left?" 

The sales and food-and-beverage taxes could both be raised by referendums without home rule, but only in .25 percent increments, according to Hartnett. 

The village is aiming for a September recommendation from the committee so the village board and community can have a discussion on the topic during the fall, Recklaus said. A board vote could come later in the fall to approve a referendum that would be put to a public vote in March 2012. 


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