Joliet examines possible property tax increase

JOLIET -- When the city council gave tentative approval to a property tax increase last week, they made clear how tentative it was.

Mayor Art Schultz and two council members voted against it. Others who voted for it took pains to show that a vote for the increase now could always change to a vote against it later.

They will hash out just what it wants to do in a series of budget meetings that starts Nov. 16.

But the council, which is neither eager to raise taxes nor anxious to lay off workers, at some point will have to come up with answers on how to avoid growing budget deficits predicted by the city's financial experts.

Those experts expect a $14 million deficit at year's end after months of negotiating with the city's unions and examining ways of raising revenues.

The deficits will only get bigger in future years if the city doesn't make sharp cuts in costs or take actions to increase revenues, City Manager Thomas Thanas has warned.

Still, Thanas said, the city has made "substantial progress" in cutting expenses over the past several months by not filling jobs, offering early retirement incentives, and going forward with a handful of layoffs.

"We're down right now by 94 employees, and that number will be growing soon," Thanas said.

Just what he meant by "growing soon" Thanas would not say.

The city is still negotiating with unions for possible pay freezes or reduced pay hikes.

A tentative deal has been reached with the firefighters' union, and that agreement would avert 16 layoffs among the fire department's ranks. Details have not been made public. Sources said the agreement would involve delayed pay increases but not absolute pay freezes.

No deal has been reached with the union representing public works and street crews, which could lose 26 workers if the city goes ahead with a previously announced layoff plan.

Meanwhile, all city workers will pay more for health insurance, including a first-time premium contribution of about $100 a month, in an agreement already reached.

And, city residents and business are paying more for water and sewer services after an increase went into effect in October.

The average increase on a nonsenior resident's water bill is $21.55 a month, according to the city. Seniors get a discount, and their average increase is $12.02 a month.

The property tax hike if approved would add about $200 a year to the city's share of the property taxes on a home valued at $250,000, according to the city.

Thanas, pressed by Councilman Anthony Uremovic, acknowledged that while the council does not have to approve that increase, he will urge them to vote for it as part of the city's budget solution.

Uremovic is one of the council members who voted against the increase.

"I believe that they should try to look harder for other sources of revenue rather than going after hard-working, tax-paying citizens," Uremovic said.

Again, as he has in the past, Uremovic wants the city to crack down on errant truck drivers and uninsured motorists. Whether he can find enough of them to balance the city's budget is another question.