After hearing frustrations from homeowners about historic property tax increases in the south suburbs at a community forum last month, Calumet City Mayor Thaddeus Jones decided he needed to find a way to provide immediate relief to residents struggling to pay their bills.
“We have to address what’s ailing the city,” Jones said at Thursday’s City Council meeting, “which is, we got abandoned homes. We’ve got people not paying their taxes … People are seeking assistance.”
Jones has pitched a proposal to transfer $2 million from tax increment financing districts to the pockets of some residents. However, some aldermen are skeptical, saying the plan could face legal challenges and do more harm than good for the city’s long-term economic prospects.
TIF districts dedicate sales tax revenues and additional property tax revenues generated within the TIF for improvements within the district, according to the Illinois Department of Commerce and Economic Opportunity. They often aim to draw economic opportunity to an area through the promise of using generated funds to cover certain costs associated with development.
Jones’ plan, which he hopes to pass through the council once he drums up enough support, would transfer 80% of the city’s generated TIF funds to Cook County to offset some residents’ property taxes. An analysis by the Cook County treasurer’s office found Calumet City has the sixth highest municipal tax rate in the county, exceeding 20%.
Jones told the council he is not aware of any other municipality moving TIF funds to provide direct financial support to residents. The plan to declare a TIF surplus in order to move money around was developed with help of Chicago attorney Anthony Bass, who answered questions from aldermen during two meetings this month.
“We take the position that providing relief to the taxpayers through TIF funds will stabilize the community for economic development,” Bass said Aug. 7.
But a majority of aldermen appeared unconvinced by the logic and legal merit of the proposal, expressing concerns with depleting the TIF budgets and getting support other taxing bodies, which have to sign off on the fund transfer.
Sixth Ward Ald. James Patton, who plans to run for mayor against Jones next year, said the proposal offers a Band-Aid that would cripple the council’s ability to help residents with tax bills moving forward. Alds. DeJuan Gardner, Michael Navarrete, Monet Wilson and DeAndre Tillman expressed similar concerns.
“This council is willing to help the residents, but please understand municipal government is not general assistance,” 5th Ward Ald. Gardner, who chairs the city’s finance committee, said Thursday. “At the end of the day, this is not a municipal issue, it’s the county and the state … It’s just not our fault.”
Jones agreed Thursday to finish the council discussion of the proposal with hopes of voting on the plan by the end of the month.
ostevens@chicagotribune.com
