Chambana Sun

Woodstock City Council met March 7.

Here is the minutes provided by the Council:

The regular meeting of the Woodstock City Council was called to order at 7:00 PM by Mayor Brian Sager on Tuesday, March 7, 2017 in the Council Chambers at City Hall. Mayor Sager welcomed those present and explained the consent calendar process and invited public participation.

City Clerk Smiley confirmed that the agenda before the Council was a true and correct copy of the published agenda.

A roll call was taken.

Council Members Present: Daniel Hart, Maureen Larson, Mark Saladin, Joseph Starzynski, RB Thompson, Michael Turner, and Mayor Brian Sager.

Council Members Absent: None

Staff Present: City Manager Roscoe Stelford, City Attorney Ruth Schlossberg, Assistant City Manager/Finance Director Paul Christensen, Public Works Director Jeff Van Landuyt, Economic Development Director Garrett Anderson, Building and Zoning Director Joe Napolitano and Grant Writer Terry Willcockson.

Others Present: Old Courthouse and Sheriff’s House Advisory Commissioner Jim Prindiville, Transportation Commission Chairman Andrew Celentano, and City Clerk Cindy Smiley.

A. Floor Discussion

Proclamation – Music in our Schools Mayor Sager stated this evening the City is happy to recognize a group from Woodstock High School who will entertain those present and invited them forward. He noted they are here this evening to celebrate Music in Our Schools, stating the City Council is very pleased to recognize this event with a proclamation.

In response to a request from Mayor Sager, without objection, the City Council accepted and approved a Proclamation – Music in Our Schools Month March, 2017.

Mayor Sager read the Proclamation and presented it to Tammy Byer, President of the D200 Music Boosters. He stated he is especially proud for their efforts in making this community a better place.

Ms. Byer thanked the City for this recognition, noting the City’s support helps the Boosters and the students continue to increase recognition of the importance of music.

The group from Woodstock High School entertained those present with a Japanese children’s song, which was received with hearty applause.

Public Comments Jim Prindiville, 214 W. Judd, addressed the City Council on the subject of its discussion of a possible 1% Sales Tax. He stated he wished to speak about this before the Council acts on Item #2 on the agenda as he feels the two are tied together. Noting discussions that were held at the first and second City Council Budget Workshops, Mr. Prindiville stated it is the City Council’s intent to raise the sales tax by 1%. Noting Councilwoman Larson’s question at one of the Budget Workshops as to the business community’s feeling about this, he stated it was indicated that they felt the preferable scenario would be a 10% reduction in the municipal portion of the property tax and a 1% increase in the sales tax. He opined this is not good information and gave some examples of why he feels this way. He stated all of the investors in the community, which he named as the landlords, stores, industries, and businesses are owned by business people who are landlords who are paying the property tax. He opined of all the taxes they pay, they see the benefit of the property tax most of all because this takes care of the streets and infrastructure. He contended these people budget for this tax and recognizes it is a cost of doing business, and they are willing to pay this.

Mr. Prindiville opined what drives the business people more than anything is the demand for their property as this is what drives the bottom line. He stated anything that diminishes demand for property is bad for them. He opined implementation of the sales tax will reduce demand for property, quality of life for potential residents, and job opportunity, which is key to increasing the demand for property. He opined this scenario will create a harder business climate and reduce the overall demand for property, so he contends the business community will not be in favor of this.

Mr. Prindiville then spoke of the retailers, noting that the segment of retail sales that is over the demand from the City of Woodstock is the sector that sells construction materials and opined they will feel the brunt of the tax. He further stated if sales taxes are raised on business, this could have catastrophic consequences for Woodstock.

Mr. Prindiville stated the report in the packet states this tax will be paid by visitors and opined the report almost contends this will bring them to Woodstock. He stated this is false and what brings them to Woodstock is the advertising and sales forces of the businesses.

Noting Councilman Turner’s comments that he would only support this if there is a sunset clause imposed, Mr. Prindiville stated this suggests daylight and contended there will be darkness and gloom for a lot of businesses. He opined if and when this tax is rescinded, Woodstock would be in a hole it cannot climb out of.

Mr. Prindiville asked Council when considering item #2 that they vote “no.” Noting this time in the agenda is for discussion of items not on the agenda, Mayor Sager requested that Mr. Prindiville refrain from discussions regarding Consent Agenda item #2 until such time as it is being considered. Mr. Prindiville then asked that item #2 be removed from the Consent Agenda for discussion when appropriate.

Noting Mr. Prindiville spoke about catastrophic consequences, Councilman Turner stated what this County has seen from home values and the business perspective, what has been catastrophic has been the lack of economic activity and the intense burden of the 29th highest property taxes in the United States. He stated the Council must decide what are the primary issues to be addressed. He stated he believes the level of property taxes is a substantial barrier to generating economic activity in town. Mr. Turner noted when potential residents come to Woodstock and ask a realtor about property taxes on a particular house, they are aghast. Many times, they either must look at a house of lesser value or are forced to move elsewhere. He noted he has heard this from realtors. Councilman Turner stated the City is trying to attract new businesses who ask the question, “What are the property taxes on this building I am thinking of purchasing and improving or what will the property taxes be if I build a new facility?” He stated they, too, are aghast.

Councilman Turner stated it is his opinion the #1 issue is property taxes and the #2 issue is attraction of economic development. He opined if the City could get rid of mandated pensions and convert to a 401K pension system, and reduce the prevailing wage that raises costs, the City could find a way to cut property taxes. He noted the City does not have that power; however, as these are state-mandated. He stated the question then becomes how the City deals with the big issue of property taxes, and closely behind that, road issues.

Mr. Turner noted the Council has not voted on the concept of a sales tax and will not until later in the year when they do what they promised as a Council by holding public discussions and a public hearing to go through all of the steps that must happen. But, if the Council is going to have the political will to address the issues that he hears about the most from the public, then the City must have a real plan, which is not hoping things get better or hoping to find ways to work with other communities. If we want to lower property taxes, we must find a way to do it.

Addressing the sunset provision, Councilman Turner opined Mr. Prindiville has not attended previous meetings where Mr. Turner has often proposed this approach as it forces a future Council to act affirmatively on an action that was taken by a past Council.

Mr. Turner took issue with Mr. Prindiville’s statement saying he is not trying to put a positive spin on issues faced by the City.

Noting Mr. Prindiville’s statement that reducing the City’s property tax would have catastrophic consequences, Councilman Turner opined the City is in a catastrophic situation when talking about property taxes in the City and in Illinois. He stated his feeling the Council must do what it can to address that situation for the City of Woodstock. He opined addressing property taxes is #1, noting Jack Franks has done this at the County level and D200 is talking about this issue as well. He noted his feeling that every taxing body in the County must do this because the State cannot be relied on to do it.

Mr. Prindiville opined there are different ways to change the property tax burden and the Council has not done anything.

Mayor Sager took issue with this statement stating the City Council has not taken the allowed PTELL for the past five years saving the property owners of Woodstock $3.4 million. He noted the City has also cut expenses from the budget to accommodate this so again noted the inaccuracy of Mr. Prindiville’s statement that the Council has not done anything in response to the property tax burden. He stated that is exactly why the Council is considering not only extending the forgoing of PTELL for a 6th year in a row, but also, to take further action to reduce the municipal portion of the residents’ property tax bills by an additional 10%.

Mr. Prindiville opined the Council has done nothing to address the cost to fund the proposed 10% property tax reduction.

Challenging that statement, Mayor Sager stated the Council has absolutely had discussions concerning that issue and will have further discussions. He noted the discussions have been held as to whether the City can weather such a reduction in the coming fiscal year if it must, and the answer is “yes.” He stated the City has a professional staff, which has performed financial analyses and have provided the City Council with the required assurances.

Mr. Prindiville contended roads are not being repaired and things are not being taken care of in the City and property taxes cannot be cut 10% without raising revenue from another source if roads are to be taken care of. He stated the City is $800,000 behind on the road repair plan before cutting the budget.

Mayor Sager noted the City has invested $1,000,000 in street repairs each year and acknowledged that does not go very far. He noted that is why the Council is looking to provide a reliable source of revenue to allow double the amount to be allocated to roadway improvements. He further stated the City is looking at other alternatives and other methods of revenue generation, stating Council is trying to find out how best to balance the mix of revenue.

Mr. Prindiville stated it is the things the Mayor just described, such as doubling the amount put into roads, which are all contingent on passing a 1% sale tax.

Mayor Sager replied that this is one alternative and Council is going through the review process. He stated Council is not going to sacrifice property tax relief, because now is the time. He noted the City is forced by state law in terms of when decisions must be made concerning the tax levy, noting it is not at Council’s discretion as to when this action can be taken. Therefore, he noted, tonight that is what is on the table.

Mayor Sager stated what he is hearing from the vast majority of Woodstock residents is they want the City to reduce property taxes, as the burden is just too much. This evening Council is looking at answering that call and possibly reducing the municipal portion of the property tax bill by 10% in the timeframe required by law for the timing of the tax levy.

Mayor Sager stated he is hearing Mr. Prindiville tell the Council, “don’t reduce property taxes by 10%”, and thanked him for his comments.

Councilman Turner stated the Council has wrestled with the budget and the economic slowdown for years and has been all ears as to how to reduce property taxes. He noted the City has 12% fewer full-time employees than it had in FY08/09 and has totally changed how it procures things like road salt and other things needed on an operational basis. He stated Council has just not decided to do these things in the last 30 or 60 days, but has been doing this since the crash of FY08/09.

Mr. Turner stated foregoing the PTELL was one of the first things the Council did in 2010 and it is time for every taxing body to follow the momentum and find a way to reduce their portion of the property tax because when businesses and residents look to move here they ask the question “what are my property taxes?”

Councilman Turner stated he agrees the roads are in rough shape and more needs to be invested in roads. He noted that doing nothing concerning property tax reduction is an option and stated if Mr. Prindiville has a plan to find additional funds for roads, Council would love to hear it. He stated, however, for now, based on the realities at hand, he believes this is the best pathway that will work.

Councilman Turner noted Council is not raising the sales tax right now, but that it is in discussions and it is in the public forum. He noted this could have waited until after the election, but expressed his feeling this is not the thing to do. He stated Council chose to put it out there and say these are the things being discussed, and the things they wish to accomplish. He stated he is not happy about a 1% sales tax, but he is less happy with the property tax he pays on his business and on his home and less happy with home values crashing because people cannot afford to live here. He noted, sometimes property taxes take up almost as much as a mortgage. Mr. Turner noted the Council is trying to fix that and perhaps put some pressure on the other taxing bodies to do the same thing, noting perhaps even Springfield will take notice that Woodstock is trying to control the thing that most impacts business and economic development.

Councilman Thompson reminded those present that this time is for the discussion of items not on the agenda.

J. Prindiville stated he had additional comments regarding the proposed sales tax and wished to continue speaking.

Mr. Prindiville stated he believes this is being done for political reasons and could have been done a year ago, but is being done now that the election is a month away. Mr. Turner asked if Mr. Prindiville was stating that he (Mr. Turner) wants to raise taxes for political reasons. Mr. Prindiville stated his belief that Mr. Turner was advocating lowering property taxes for political reasons. In response to a comment from Mr. Prindiville that Councilman Turner should speak with Jack Franks about lowering the County’s sales tax, Mr. Turner stated he would be all for that and also all for D200 doing more than it is currently doing to lower taxes. Mr. Turner stated that anyone who knows him or has attended Council meetings knows he is anti-tax, particularly property tax. He stated this is not being done for political reasons, but rather to fix a problem. He stated the City has the opportunity to take a step to reduce property taxes and potentially to put more money into roads. He opined this is not political, but is taking steps to fix problems.

Mr. Prindiville noted property taxes are being lowered less than a month from the election with no cuts to offset the loss in revenue. Councilman Turner stated the City has been making cuts for the past six years.

In response to a comment from Councilman Saladin that Mr. Prindiville, too, is running for City Council, Mr. Prindiville stated he is speaking as a resident and businessman, not as a candidate. Mr. Turner stated his appreciation of Mr. Prindiville’s views and believes he would be here as a private citizen even if he were not a candidate. He asked Mr. Prindiville to believe that as an individual he (Mr. Turner) has looked at property taxes, saw a need, and saw how he, as an elected representative, can lower those property taxes. He stated his feeling that if this can be done now, it should not wait another fiscal year and should occur as of May 1, 2017. Councilman Turner stated he is talking about this at this time because it is the right thing to do, not because it serves him politically.

Council Comments Mayor Sager expressed his appreciation to those who participated in the example of free expression that occurred on the Woodstock Square this past Saturday, stating he is grateful this happened in a positive, open, and considerate manner. He also expressed his appreciation to the Woodstock Police Department who protected all people’s rights to free speech and freedom to assemble.

Noting the City’s past assistance to MCYSS, Councilman Saladin stated that group is very close to securing a team from Mexico to participate in their tournament. He thanked Cultural and Social Awareness Commissioner Jose Rivera for his assistance. Mr. Saladin noted there are teams from several foreign countries who will be participating.

Consent Agenda

Motion by M. Larson, second by M. Saladin, to approve the Consent Agenda.

The following items were removed from the Consent Agenda at the request of Council members:

• Item E-1 – Ordinance – Liquor Control – Video Gaming – by Councilman D. Hart

• Item E-2 – Ordinance – 10% Property Tax Reduction Ordinance – by Mayor Sager

• Item E-4 – Ordinance – Amending Title 6, Chapter 1, Article D, Wireless Communication –

by Mayor Sager

• Item E-8 -Ordinance – Code Amendment – Compliance – by the consensus of the Council at

the request of resident Scott Gessert

Mayor Sager asked if there were any comments or questions on any items remaining on the Consent Agenda.

Councilman Saladin noted there are two items on this evening’s consent agenda that will allow the City to make grant applications, one relative to the pollinator garden project and one to give the City the ability to replace a generator at no cost to the City. He expressed his gratitude to City Staff for finding creative ways to fund projects. Mayor Sager acknowledged the work of Grant Writer Terry Willcockson and thanked her for her efforts.

Mayor Sager stated he is pleased with the action taken by Item E-9 and asked that Staff make sure to remain in communication with adjacent property owners giving them appropriate notice.

Councilman Thompson commended J. Van Landuyt and the Public Works Department for the quality of the Public Works’ report noting it is a premier document.

In response to a request from Mayor Sager, there were no comments or questions forthcoming from the public concerning the items remaining on the Consent Agenda.

Mayor Sager affirmed the Consent Agenda to include items B through D, E3, E-5 through E-7, and E-9 as follows:

B. Minutes of Previous Meetings: February 21, 2017 Regular Meeting

C. Warrants: 3750 3751

D. Minutes and Reports:

Woodstock Opera House Advisory Commission Minutes October 2016 Woodstock Opera House Advisory Commission Minutes November 2016 Transportation Commission Minutes January 2017 Woodstock Opera House Advisory Commission Minutes January 2017 Woodstock Public Works Report January 2017

F. Manager's Report No. 85

3. Resolution – ComEd Green Region Program – Pollinator Garden Project

Approval of Resolution 17-R-06, identified as Document 3, A Resolution Authorizing Application to the ComEd Green Region Program through the Openlands Organization.

5. Ordinance – Variance – Maples at Sonatas

Approval of Ordinance 17-O-20, identified as Document 6, An Ordinance Granting a Variance from the Provisions of the Woodstock Unified Development Ordinance for Property at 601 Handel Lane to allow the construction of a 7’ wide by 14’ long screened porch within 13 feet of the side yard abutting a street lot line.

6. Agreement – 1524 Hillside Trail – Lift Station Easement

Approval and Authorization for the Mayor and City Clerk to execute an agreement, identified as Document 7, to accept an easement dedicated from a resident at 1524 Hillside Trail for the operation of a lift station on the Southwest corner of the property with the City providing a one-time payment to the property owner of $3,500, installing a pipe in the public right-of-way to eliminate the ditch, and purchasing and installing 8-10 arborvitaes to screen the view of the lift station from the residence.

7. Agreement – NRGCS PowerPay Program – Generator Improvements

Approval of an agreement, identified as Document 8, for the City to participate in the NRGCS PowerPay Program for such a period of time that is required to reimburse NRGCS for generator retrofit improvements to meet EPA requirements at the Northside Wastewater Treatment Plant, resulting in no out of pocket costs to the City and allowing participation in the PJM Curtailment Program, subject to final review and approval by the City Attorney’s Office.

9. Ordinance – Code Compliance – Sale of City-Owned Real Estate

Approval of Ordinance 17-O-21, identified as Document 10, An Ordinance Amending Title 1 of the City Code of Woodstock, Illinois Regarding the Sale of City-Owned Real Estate to establish processes for the future disposition of real estate property.

A roll call vote was taken to approve Consent Agenda Items B through D, E3, E-5 through E-7, and E-9. Ayes: D. Hart, M. Larson, M. Saladin, J. Starzynski, RB Thompson, M. Turner, and Mayor Sager. Nays: none. Abstentions: none. Absentees: none. Motion carried unanimously.

Item E-1 - Ordinance - Liquor Control – Video Gaming Councilman D. Hart recused himself and exited the Council Chambers at 7:45 PM.

Motion by M. Turner, second by M. Saladin, to approve

a) Ordinance 17-O-22, identified as Document 1, An Ordinance Amending Section 3.3.5,

Video Gaming Terminals of the Woodstock City Code, and b) Ordinance 17-O-23, identified as Document 2, An Ordinance Amending Section 3.3.6,

Classification of Licenses; Number and Fees, of the Woodstock City Code.

In response to a question from Councilman Thompson, P. Christensen stated this action would result in approximately an additional $80,500 in video gaming license revenue.

Mayor Sager asked if there were any public comments or questions on this item.

Zack Grycan, 4622 Dean Street, asked to what fund the additional revenue will be dedicated. Mayor Sager replied these funds will be dedicated to police services and any other issues associated with video gaming.

A roll call vote was taken. Ayes: M. Larson, M. Saladin, J. Starzynski, RB Thompson, M. Turner, and Mayor Sager. Nays: none. Abstentions: none. Absentees: D. Hart. Motion carried 6-0.

Councilman Hart returned to the Chambers and rejoined the proceedings at 7:48 PM.

Item E-2 – Ordinance – 10% Property Tax Reduction Mayor Sager stated this item is consideration of an ordinance which would abate a portion of the City’s 2016 Property Tax Levy resulting in a 10% reduction of the municipal portion of the residents’ property tax bills.

Motion by M. Turner, second by M. Larson to approve Ordinance 17-O-24, identified as Document 3, An Ordinance Abating a Portion of the 2016 Tax Levy of the City of Woodstock, McHenry County, Illinois.

Councilman Saladin stated it is important to look at what options the City has for replacing the revenue that would be lost with this property tax abatement. He noted that one of these is a 1% sales tax increase and stated he has always been open to looking at and considering this. He noted, however, the Council has not decided upon this yet and further discussion is required. He stated he does have to rely on Staff relative to whether or not the City can weather this property tax reduction if the new sales tax is not instituted.

Discussion followed of the requirements for enactment of a sales tax increase with Mayor Sager stating the City would go through the process that was established with the passage of a previous resolution. He noted that resolution established that there would be thorough and open public communication and a public hearing. He stated the City would go through a process of public engagement as has been previously discussed, noting this would be planned for later in the year as Council and Staff looks at whether that is the best alternative for the residents or not.

M. Turner stated Council is taking the step to pass this ordinance reducing property taxes right now because it must comply with the requirement to establish the property tax levy as mandated by the State. He stated the City must, at this time, state the number for the property tax level to be implemented on May 1st.

Councilman Turner discussed the previous discussions that have been held by the City Council concerning property taxes. He stated that the Council members have heard repeatedly from residents that property taxes are too high. He noted that even though this will not provide huge relief to a taxpayer, as the City’s portion of a resident’s property tax bill is only 16%, his opinion is that this will build momentum among other taxing bodies to follow suit. He would hope to see similar reductions by the County, MCC, District 200, and the Fire/Rescue District.

Mr. Turner stated implementation of a sales tax is not a foregone conclusion and depends upon the Council at that time and public engagement previously discussed. He stated that will determine if revenue is raised to pay for this property tax reduction and also provide increased revenue to put toward road improvements.

Councilman Turner again reiterated that he hears “no more” when residents talk with him about property taxes.

Mayor Sager stated the call for modification of property taxes in Woodstock has been the paramount discussion and a loud conversation. He stated the people believe the burden is too high and are asking their elected officials to relieve that burden. He stated the City Council has a significant responsibility not only to forgo what the City is allowed by PTELL, as it has done in the past five years, but also has the responsibility to come together along with other units of local government and respond to the call to reduce property taxes on residents and businesses.

Mayor Sager stated doing this will provide residents with the opportunity to improve their quality of life and to do other things with that savings.

Mayor Sager stated this is a very important responsibility and the City Council must do what it can. He stated the City now has the opportunity to look at a sales tax. He stated this is one of the opportunities and the community will be engaged in the discussion as to whether this is the right opportunity, the best opportunity, for the community or whether the City needs to look at other things. He rejected the previously-expressed opinion that the City should not do what it can to reduce property taxes when the opportunity exists to do so and stated his belief that this opinion is not thoroughly vetted because the call for property tax relief is so strong.

Mayor Sager stated he supports passage of this property tax abatement ordinance tonight because it is the right thing to do on behalf of the residents and the business community.

Councilman Turner stated he also fully supports passage of this ordinance, which would lower property taxes. He noted he is not completely sure about a sales tax increase, stating he needs more information and input from the public.

Mayor Sager agreed, stating he, too, is not sure a sales tax increase is the best alternative. He stated he has had the opportunity to speak with some of the business people in the building materials area and this is a concern that needs to be looked at when entering into a complete discussion of a sales tax. Mayor Sager stated the City must look at this concern and explore what the other alternatives are.

Mayor Sager noted that the City does have the opportunity to look at the revenue mix and to find the right balance of revenues that does not put such a significant burden on the City’s property owners, who, he stated, are currently burdened with an unmanageable property tax level. He noted the City must look at other alternatives that can be spread out among more individuals and does not put the burden of a one-time large pay out twice a year on individuals, families, and businesses.

Councilman Saladin agreed and noted he wishes to have discussions with Staff relative to the City’s ability to weather the storm in case there is a reluctance to a sales tax, or to a sales tax at the 1% level. Mr. Saladin stated his wish to make sure there is the ability to withstand that almost $1 million reduction in revenue because expenses will still go on for the City. He stated the residents will still require water service, parks, and other needed services.

Councilman Saladin stated the City is already doing other things to try to abate the reliance on property taxes, noting the City now has a vibrant Economic Development Department and an Enterprise Zone, neither of which was in existence a couple of years go. In addition, the City now participates fully with the McHenry County Economic Development Corporation.

Mayor Sager stated the City also has made significant efforts in securing grants. Councilman Saladin agreed, stating these, along with the City’s marketing effort, are some of the many consistent efforts to attract business, commercial, and industrial entities. He noted these things do not happen overnight, but things are in place that would allow the City to take advantage and to secure commercial and industrial businesses so there would not be so much reliance on residential real estate. He stated these are the things the City is already doing, noting his pride in these efforts.

In response to Mayor Sager’s request for Staff’s opinion, City Manager Stelford stated Staff has looked at what the reduction in revenue would be and believes there are sufficient reserves to weather the loss of this revenue for a time. He noted this would not be a storm the City could weather for multiple years and would have to make other adjustments eventually. P. Christensen stated his belief the City could weather this loss in revenue this year should there be no additional revenue to replace it.

Councilwoman Larson stated the entire time she has been serving on the City Council, the City has been clawing its way through outside factors, many of which were imposed upon the City including some of the language and the unnecessarily complex process of property taxes. She noted that many people do not understand what PTELL is. She stated, it is the cost of living increase that is automatically allowed to the City each year routinely raising property taxes. She stated the City Council, led by Councilman Turner, has made the bold move to say no to this automatic increase for the past six years, being the first taxing body to do so. She stated this built momentum resulting in other taxing bodies following suit. She also noted Woodstock has managed to grow 3% in population despite the flight from Illinois. She stated in this negative environment, the City has made positive steps.

Ms. Larson noted property taxes place a ridiculous level of burden on the taxpayers, so when the discussion began to reduce the property tax levy by 10%, she saw that as a need for all residents. She stated she and the Council are glad to be doing this responsibly and hope this starts a trend as they did with foregoing PTELL.

Councilman Starzynski requested to ask a question of Mr. Prindiville. He asked if he understood Mr. Prindiville’s previous comments to be that he feels a sales tax would have a greater effect on people deciding whether to move to Woodstock than the amount of property tax on a home. He asked if he understood correctly that Mr. Prindiville feels a sales tax would have a more chilling effect on people deciding to become Woodstock residents than the property tax levels.

Mr. Prindiville stated his feeling that if sales taxes are raised it will affect retailing in Woodstock. He opined retail opportunities for residents will decline and they will look elsewhere for retail opportunities. He opined this would reduce the quality of life in Woodstock.

Mr. Starzynski noted his job is to try to get people financing so they can buy homes in Woodstock. He noted what he has seen over the past seven or eight years when he goes over the payments with potential homebuyers who are trying to make the decision whether to move here or somewhere else is that moving here is a harder decision because the buyer can buy much more elsewhere because the property taxes are higher here. He stated in some cases the buyer will choose to buy a less expensive house, but in many cases, they decide they must move to another community where property taxes are less. Most of the time, he noted, they decide the property taxes are too high.

Mr. Starzynski stated his opinion that the high property taxes in Woodstock have a more chilling effect than the sales tax would.

Mr. Prindiville stated the amount of property tax is relative to the price of the asset and if someone is a buyer today in Woodstock, they relatively get a lot for their money. Mr. Prindiville noted there are different ways to change this negative property tax influence in the community. He noted this has to do with the value of the property itself.

Mr. Prindiville stated one of his concerns is Council is considering this action without finding places to cut or new revenue sources and that this is putting the City in a weaker financial position. He stated Council is being told they can carry this nearly $1 million for one year. He noted the reserve is projected to be $2 million while last year it was approximately $2.5 million. He opined the problem with lowering the reserve is that this is what makes the City healthy financially, and he contended a healthy reserve has a positive impact on businesses that want to locate in Woodstock because they know this is a healthy municipality.

Mr. Prindiville cited the example of someone who wishes to develop 20 acres along Rt. 14 who has “X” dollars to spend, opining the City would want them to spend all of this on the facility because that would raise the tax base. He opined for that to happen perhaps the City would need to build the roads and put in water and sewer, stating the City would want them to spend all of their money on the facility itself. Mr. Prindiville further opined the City would have to be nimble and do this fairly quickly, and in order to do this, must be healthy financially.

For this reason, Mr. Prindiville stated, he contends the City must be more conservative and should not take action to reduce property taxes until Council is assured there are revenues to replace this and meet road repair needs, or has decided to make $1 million in cuts. Then, he stated, Council could cut property taxes by 10%.

Mr. Prindiville then addressed the sales tax question. He stated Council noted they do not have to have a referendum to implement this. He opined a public hearing will not suffice. He opined the consequences of this action are complex and unknown and that this action will say what kind of community we want to be. He opined this is the fundamental question this boils down to, which should be put to the voters.

Councilman Turner stated he is not comfortable with Mr. Prindiville’s contention Council is not putting this to the voters because if the differences between the candidates are drawn, there is a quasi-referendum in 30 days. He stated a referendum has significant costs and time delays associated with it. He noted Mr. Prindiville spoke earlier about being nimble and acting quickly, but now is advocating slowing things to a crawl and taking two years to enact property tax relief.

Mr. Turner stated Council receives feedback all the time and contended Council is open to all people who contact them and considers all opinions.

Councilman Turner stated Mr. Prindiville urges Council not to do this because “what if” someone wants to build on Rt. 14, but the problem is the City has not seen any of this for the past six to eight years. He stated what the City has heard from some developers coming through the Economic Development Department and meeting with the Mayor is that property taxes are prohibitively high and they can’t build here. He stated at the same time, people are asking “where are the jobs?” and “what are you doing about it?” Mr. Turner stated the Council is trying to do something about it. He noted he trusts staff and the City’s management of its fiscal affairs.

Councilman Turner then asked Mr. Stelford about the City’s debt in comparison to generally accepted principles for municipalities the size of Woodstock. Mr. Stelford responded the City’s debt levels are in better shape than many municipalities Woodstock’s size.

Mayor Sager noted the City’s bond rating has been raised two times since 2008. Councilman Turner stated this means the outside world that judges these things says Woodstock is in good financial shape.

Mr. Turner noted the Council has also had discussions noting many of the City’s bond payments will come off the books in the next few years and this is all part of the discussion and consideration as Council proceeds.

Councilman Turner stated the City needs to make a statement so that when someone contacts the Economic Development Department, they can be told the City of Woodstock just cut property taxes by 10% and that the City is doing everything possible to attract businesses and residents despite what is happening in the State of Illinois.

Mr. Turner opined the 10% tax cut is prudent and important to do now and as part of the normal process, a future Council will have to make decisions.

J. Prindiville opined taking this action to reduce property taxes without making cuts and/or finding new revenue is going to put the City in a weaker financial position than it is today that Council is so proud of, stating this concerns him. Mr. Prindiville opined in terms of nimbleness what Council is considering tonight will make the City less nimble. Mr. Prindiville stated in terms of the sales tax, Council could have placed this on April’s ballot. He opined Council could wait a year to enact the property tax reduction. He opined Council is doing this for optics to be able to say they are doing something.

Councilman Turner categorically rejected this statement, stating this is being done for the City’s businesses and residents and has nothing to do with optics. He stated Council has been working on property taxes for years by foregoing the PTELL and now this is a new opportunity for the City. He stated this is not optics, but is making a decision that is in the best interest of the City.

Mayor Sager requested any further comments concerning this action to partially abate the City’s property tax levy to provide a 10% property tax reduction to the City’s portion of property taxes.

Molly Oakford asked what kind of intergovernmental discussions Council is having with other taxing bodies such as District 200, the County, and MCCD.

Mayor Sager stated the City has consistent discussions with other taxing bodies. He noted the City is a member of the McHenry County Council of Governments to which the County, MCCD, and MCC also belong. He stated conversations are going on routinely about how to address residents’ concerns about property taxes. He stated all taxing bodies realize this is not just an issue for one individual municipality, noting McHenry just agreed to reduce their property tax levy by 3%.

Mayor Sager stated the City Manager also routinely meets with the administration of D200 and the Woodstock Fire/Rescue District to discuss this and other issues. He stated the City is trying to set an example just as was done by foregoing PTELL, noting others followed.

Councilmember Starzynski stated he speaks with District 200 representatives as a resident, rather than as a Councilman. He noted they are going through their own process looking at facilities and trying to reduce costs, not because the City Council has talked to them, but because they are responding to residents who are telling them property taxes are too high.

Councilman Turner stated there is no formal orchestrated connection with other bodies because they are independent. He noted, however, there is now an environment where other bodies are talking about lowering taxes that he believes came about when the City stopped taking PTELL and other bodies then followed suit. He noted that for the first time, D200 did not take PTELL this year. He stated there is no formal connection as the City does not have any authority over the other units.

Ms. Oakford asked why there is not an intergovernmental workshop to start communication regarding property taxes. She opined this should be a collaborative effort to reduce real estate taxes.

Mayor Sager asked if Ms. Oakford is suggesting the City not do anything until a commitment is received from other units of government that they will also do something.

Ms. Oakford said this is not what she is advocating, rather she is encouraging an intergovernmental discussion. Mayor Sager stated the City has these discussions at the Council of Government level and Staff regularly meets and holds on-going discussions with the Superintendent of D200 and the Administration of the Fire/Rescue District.

Ms. Oakford stated she is not talking about discussions at a Staff level, but rather at the governing body level. She opined Council should be engaging in these discussions with the School Board.

Mayor Sager noted this evening the City Council is making a decision for the City of Woodstock over which it has authority. Ms. Oakford noted the School District accounts for 60% of a resident’s property tax bill and repeated her opinion that it would be appropriate to engage in discussions with them. Mayor Sager again stated the City is considering a 10% reduction in the municipality’s portion of the property tax bill, over which it has control. He stated the City does engage in discussions with other taxing bodies both at the Staff level and through the Council of Governments at the elected official level.

Councilman Turner stated the City Council has authority over and responsibility for the City of Woodstock and must manage that, while the school board must manage its business and decide whether a 10%, or any other reduction would work for them. He opined the public leads them, just as it leads the City Council. He stated there are discussions on an informal level to try to get every taxing body to come to a consensus to lower property taxes. He noted the State has set these bodies up to be independent with their own areas of management and control.

Councilman Starzynski opined the loudest thing the City Council can do is to be the biggest influence and respond to our residents by taking action to cut property taxes

Ms. Oakford stated she finds it difficult to understand why there is not more communication at the intergovernmental level.

Councilman Thompson stated the City undertook many building and infrastructure projects in the early 2000s including purchase of the Recreation Center, building the Stage Left and Annex, the Woodstock Police Station, the Aquatic Center, a large water tank at Bates Park, expansion of the Public Library, straightening of the McConnell Road curve to make it safer, and expansion of Lake Avenue to accommodate the traffic resulting from development in that area. He stated these were all done through the issuance of 20-year bonds, which will be retiring in the very near future as was noted earlier.

In response to a question from Mr. Thompson, Mr. Stelford stated the debt service on these bonds is $1.8 million out of a $32.4 million budget. Addressing Mr. Prindiville’s previously expressed concerns, Mr. Thompson stated retirement of this debt will make additional money available to make up the approximate $1.0 million in revenue that will be lost with the property tax reduction being considered this evening.

Mr. Prindiville acknowledged Councilman Thompson’s point, but opined that is three to five years in the future while the City’s infrastructure needs repair now.

In response to a question from Molly Oakford as to whether the City Council would be considering this property tax reduction if it had not achieved Home Rule, Mayor Sager stated Council likely would have considered some reduction, but not likely 10%. In response to further questioning from Ms. Oakford, Mayor Sager noted prior to achieving Home Rule, the City did not have the ability to review and rebalance the City’s revenue mix, which it now does. He further stated the City did not have any additional opportunity to generate the revenue that would be lost with a property tax reduction.

In response to further questioning from Ms. Oakford, Mayor Sager clarified that he stated a property tax reduction would likely have been on the agenda in some form because the City has been exploring and discussing some kind of reduction due to the call from residents to reduce property taxes. Council is only able to look at this level of reduction because Home Rule status has been attained. We stated previously the City was doing all that could be done by not taking PTELL and cutting costs to the extent possible. He stated unfortunately this can only go so far, as services still must be provided. He stated, now that the City is Home Rule the opportunity exists to evaluate the revenue mix and try to bring it to an acceptable level. This would reduce the burden of property taxes and provide a number of sustainable revenue sources as the City looks to put more dollars into roadways and infrastructure, and deal with the requirement the State has imposed on the City regarding pension funding.

Ms. Oakford observed the school district’s census is declining while the City attained Home Rule through a census, which showed the City’s population has increased. She opined this is inconsistent and took issue with the partial census.

Mayor Sager stated there is a generational shift in the population with less students flowing through the school, which may have nothing to do with the total population, but rather with the number of students. He noted this is affecting colleges and schools across the country, including Woodstock. Ms. Oakford opined this is not the case and again took issue with the census procedure. Councilman Turner noted the population went up by 700, not thousands, and stated the census was conducted as prescribed by the Census Bureau and the population certified by the State of Illinois by the State’s regulations. He urged Ms. Oakford to take this up with the State. Councilman Turner opined the schools were built to a capacity that was quite large and that has not been realized. He opined the City is trying to reverse this trend and bring more people to Woodstock.

Ms. Oakford opined Council is not considering all residents, including renters, when considering this action. In response to a question as to whether Ms. Oakford supports the property tax reduction, Ms. Oakford urged Council not to make a reduction until it can be done so that additional revenue would not be needed for a year or two. She opined a sales tax would affect everyone while the property tax only affects property owners.

Councilman Saladin noted while the City has 36% rental units, that means 64% are homeowners. He stated he is “flabbergasted” by this discussion and asked if there is anyone present this evening who wants their property taxes reduced. Several members of the audience raised their hands in affirmation.

In response to another call from Ms. Oakford to enter into intergovernmental discussions, Councilwoman Larson asked Ms. Oakford if she has made this same request to those bodies to which she replied she has not. Ms. Larson stated she is one taxpayer to the school board with no authority over them, which is the way it should be. She stated she is not an expert on how the school manages its affairs and does its funding. She noted the bodies are separate entities managing separate entities.

Councilman Thompson discussed the school population echoing Mayor Sager’s comments concerning a population shift. He also noted District 200 encompasses a much larger area than just Woodstock.

John Nelson, 2110 Grandview Drive, stated he has been listening to the discussion this evening and expressed his appreciation to Council for all it has done and stated, as a resident, he encourages them to pass the ordinance reducing property taxes this evening. He stated he is confident of what the Council and Staff has done. He noted no one knows the future, but he looks at the past and feels Council has made the right decisions.

The resident of 601 Handel stated he lives in the Maples of Sonatas. He stated he knows the City is not involved with assessments, but described how his assessment and the decision of the State that his home is in a deluxe retirement community have adversely affected him. He noted the difference in his property taxes on a more expensive home in Gurnee versus the greater amount he pays on his home in Woodstock. He also noted the many homes that are for sale in his development, opining this is why.

Councilman Turner stated the message the Council hopes to send to other taxing bodies and the State is that the City of Woodstock took a stand to say, property taxes cannot continue to rise and must be cut. He stated he is supporting this ordinance to cut property taxes because it is the right thing to do and it builds pressure and momentum for other taxing bodies to do the same, which, hopefully, could minimize what the resident is describing.

Councilman Saladin stated he must look at what is on the agenda this evening, which is a 10% property tax abatement. He stated Council has had discussions at workshops dealing with the budget relative to a sales tax and will have continued discussions, but there is nothing on the agenda this evening concerning that. He stated when he asked the question earlier whether the City has the financial wherewithal to withstand this property tax reduction, the answer was “yes.” He stated he anticipates further discussion of the sales tax in coming months. He noted Algonquin, Lake in the Hills, McHenry, and Crystal Lake all have a sales tax that have been increased based on Home Rule, and stated he does not think they have experienced dire consequences regarding retail in those cities.

Mr. Saladin stated when he looks at this particular agenda item he sees the question, “Do we want a 10% reduction in property taxes?” his answer is “absolutely” so he will be voting in favor.

A roll call vote was taken on the previous motion by M. Turner and seconded by M. Larson to approve Ordinance 17-O-24, identified as Document 3, An Ordinance Abating a Portion of the 2016 Tax Levy of the City of Woodstock, McHenry County, Illinois.

Ayes: D. Hart, M. Larson, M. Saladin, J. Starzynski, RB Thompson, M. Turner, and Mayor Sager. Nays: none. Abstentions: none. Absentees: none. Motion carried unanimously.

Item E-4 – Ordinance - Amending Title 6, Chapter 1, Article D. Wireless Communication In response to a question from Mayor Sager, City Manager Stelford stated the ordinance included in the Council packet was developed based on model ordinances used by other communities. He stated AT&T has requested an opportunity to meet with Staff to review the ordinance and has requested this item be tabled at this time. He stated it is Staff’s recommendation to postpone this item to a time specific, specifically the March 21st meeting, to provide time to work out the details.

Motion by M. Saladin, second by M. Larson, to postpone to time specific, specifically March 21st, 2017, Item E-4, an Ordinance amending Title 6, Chapter 1, Article D of the Woodstock City Code entitled “Construction of Utility Facilities in the Rights of Way” regarding Personal Wireless Telecommunication Facilities.

A roll call vote was taken. Ayes: D. Hart, M. Larson, M. Saladin, J. Starzynski, RB Thompson, M. Turner, and Mayor Sager. Nays: none. Abstentions: none. Absentees: none. Motion carried unanimously.

Item E-8 – Ordinance – Code Amendment – Compliance Scott Gessert, 810 Gerry, stated the proposed ordinance eliminates the defense of compliance to code violations with the goal of achieving more compliance. He stated he understands this action is being considered to address problems with a few landlords who are not providing a safe environment for tenants and who are taking advantage of existing loopholes and not complying. He stated he has a concern, however, with the application of this ordinance to other violations that other residents may incur and with the City seeking sources of revenue. He asked that Council consider an amendment to the ordinance to exempt entities not acting as landlords to prevent overzealous Code Enforcement or Police action.

Mr. Stelford stated the Court is conducted and these decisions are made by a professional judge who is not an employee of the City and are not made by Code Enforcement or the Police Department. He noted that past experience has indicated he is a very resident-friendly judge. Mr. Stelford noted in his prior discussions with Mr. Gessert he told Mr. Gessert of his opinion this would help address the serious issues faced by tenants who have come before the City Council in the past with landlord complaints.

Councilwoman Larson noted this would be one tool the judge has and is not mandatory in every case. City Attorney Schlossberg confirmed this would be used at the judge’s discretion.

Noting this could be used for other property maintenance complaints, Mr. Stelford cited the example of an individual who is cited for parking a vehicle in a front yard who complies and moves the car near the end of the 60-day period and then parks it back on the grass after the 60-day period has expired. He stated as a non-Home Rule community, the City did not have any recourse, but that with Home Rule status the ordinance being considered is designed to remedy this.

Mayor Sager stated the City Council has frequently heard from residents with property maintenance complaints and has not had this power to address them previously.

Motion by M. Turner, second by M. Saladin, to approve Ordinance 17-O-25, identified as Document 6, An Ordinance Amending Title 1, Chapter 7, Article L, Section of the City Code of Woodstock, Illinois Regarding Defenses to Code Violations.

A roll call vote was taken. Ayes: D. Hart, M. Larson, M. Saladin, J. Starzynski, RB Thompson, M. Turner, and Mayor Sager. Nays: none. Abstentions: none. Absentees: none. Motion carried unanimously.

Discussion Items:

10. Transmittal of Third Quarter Financial Reports On behalf of the City Council, Mayor Sager accepted these reports with gratitude.

P. Christensen stated the City is in great financial shape with revenues exceeding the budget and expenses down. He noted additional funds will be recommended at year end to be transferred into the CIP Program.

Mayor Sager noted these reports are public documents available on the City’s website.

11. Schedule Final Budget Workshop Date Mr. Stelford noted the Budget Public Hearing is scheduled for April 4th with consideration of approval of the Budget scheduled for April 18th. Following discussion of available dates, it was the consensus of the City Council to tentatively schedule this final budget workshop for April 13th, from 1:00 PM to 5:00 PM.

Future Agenda Items There were no changes or additions to the Future Agendas.

Adjourn

Motion by M. Larson, second by M. Saladin, to adjourn this regular meeting of the Woodstock City Council to the March 21, 2017 City Council Meeting at 7:00 PM in the Council Chambers of Woodstock City Hall. Ayes: D. Hart, M. Larson, M. Saladin, J. Starzynski, RB Thompson, M. Turner, and Mayor Sager. Nays: none. Abstentions: none. Absentees: none. Meeting adjourned at 9:16 PM.