Cook County could be looking at double-digit levy increases for the next three years.
At the board’s June 20 Committee of the Whole meeting county Administrator Jeff Cadwell presented the board with a couple of scenarios that call for tax increases.
Under the first plan the county would receive a 19.99 percent levy increase in 2018, a 12.99 percent increase in 2019 and an 8.99 percent levy increase for 2020.
Under the second scenario the board would assign levies of 14.99 percent for 2018; 13.99 percent for 2019; and 12.99 percent for 2020.
“After one of these three-year plans Cook County could expect a 5-7 percent (levy) as a new normal, and not be facing double-digit increase to account for the unbalanced budget,” wrote Cadwell to the commissioners.
During 2017 commissioners received budget requests that initially called for more than a 26 percent levy increase over 2016. After whittling down the requests, commissioners at first settled on a 19.88 percent levy, but calls from local citizens brought commissioners back to the budget table and in the end they set the levy at 11.2175 percent.
“As we head into the 2018 budget discussion, we have the same problem as 2017—an unbalanced budget,” Cadwell said. “We didn’t dodge a bullet by ending up at 11 per cent rather than 19 percent last year. We prolonged the problem— we are still digging the hole, just a little slower and unfortunately this gap now has a 2018 price tag.
“This is not easy to accept—nobody wants to see double-digit levy increase, certainly not the board, administration or staff as we are all tax paying citizens as well, but it is the reality of the situation we are in and the further it gets punted, the price tag goes up.
“This is to say…had there been incremental increases or realistic levies without spending down fund balances starting 10 years go, we wouldn’t be in a perpetually unbalanced budget position and we could’ve had several million dollars in the bank.
Also driving the levy, added the county administrator, are “the demand to maintain service levels, facilities and amenities that contribute to quality of life, and manage higher caseloads (for example, 1 in 4 children in the county are accessing services through Family and Children Services which is a staggering statistic and requires a significant amount of staff). Most of the cost of what we do is in the staff that we have and they are the most valuable piece of service delivery—without staff, we cannot deliver certain service levels.”
With a county population of just over 5,000, the county must provide mandated services like counties that are much larger. “How do we do that without cutting off vital services and address the unbalanced budget? We must be thoughtful about our processes and make the tough decisions to actually fix the problem rather than burying our heads in the sand and slowly bleed out. Having a plan is the most important to get to stability,” said Cadwell.
Provided to commissioners was an expense and revenue summary. Over the next three years an assumption was made that employee benefits would go up 10 percent each year; the fund balance 3 percent per year and salaries are projected to increase 2.5 percent each of those three years. Debt service for CIP would increase from $25,000 in 2018 to $220,000 in 2019 and 2020. General operational increases of $300,000 were figured into the year 2019 and calcium chloride for the roads was targeted at $140,000 for 2018.
“There is a perception of out-of-control spending and increases. This is not actually the case. You often hear people say, ‘What do I get for my tax dollars?’ Well, let’s take a look at that: public safety, transportation and roads infrastructure, children and human services, education, culture, land management, amenities and culture—not to mention a basic level of human dignity.
“We can get to a place of stability. This will require some tough choices to get to a balanced budget, but if we do so now by setting a goal and implementing over the next three years, ultimately we can get to a new normal of around 5-7 percent. We will have a long-term financial plan that is sustainable, plans for asset renewal and infrastructure, and opportunity to leverage funds.”
Administrator Cadwell called on the board to start the budget conversation, “much sooner and have plans to allow for increased public engagement and proactive communication around the county’s budget. Key budget dates, 2018 assumptions and information including a clear picture of our financial position and public input sessions will be available well in advance of the Truth in Taxation meeting in the fall.”
While no action can be taken at the Committee of the Whole meetings, this format provides commissioners with a way to talk in depth about one or two major subjects at a time, giving them time to get the information they need before voting at a formal board meting. Committee of the Whole meetings are held the third Tuesday of the month from 1 p.m. to 3 p.m. following the regularly scheduled board meetings.
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