If Yorkville residents approve making the city a home rule community via a referendum on the November ballot, the city will have a set of restrictions included in a measure approved unanimously by the City Council Tuesday evening.
The council’s four-member Administration Committee has been discussing the home rule policy. Alderman Joel Frieders, vice chairman of that committee, said the policy will ensure that future city officials will adhere to certain restrictions.
“Out of all the discussions I’ve had with everyone, they’re not afraid of us sitting here right now; they’re afraid of interpretations of us the next eight, 12, 15, 16 years,” he said. “I just want to make sure that we don’t make it a simple swipe of the pen to reaffirm a lot of the home rule powers.”
The policy is similar to that enacted by the city of Woodstock, according to a memo from City Administrator Bart Olson to the City Council. Frieders said the rule is “a really good basis, but I wouldn’t mind going a little bit stronger.”
Alderman Carlo Colosimo explained that the restrictions would essentially require the city follow the same non-home rule process as they do currently when seeking a tax increase, if the home rule referendum is approved.
A resolution approved unanimously Tuesday – Alderman Seaver Tarulis was not present – outlines various restrictions and states that if the referendum is approved the mayor and City Council agree “to pledge to exercise any of the home rule powers only to the extent deemed necessary with a view to the long term impact upon the community and with specific limitations on the power to tax and the power to incur debt.”
The restrictions include:
• Prior to adopting any new tax or increasing an existing tax that is not authorized under the Illinois Municipal Code for non-home rule communities, city officials must schedule a public hearing on the proposed tax, and that the city publish notice no less than 14 days before the hearing.
• Any property tax levy shall not contain an increase that exceeds the tax cap law, or Property Tax Extension Limitation Law (PTELL). “However, that the City Council may deem, in its sole discretion, that an emergency financial condition exists, in which case the (PTELL restriction) would not apply during such emergency period. Any tax adjustments instituted in order to address any such emergency would thereafter be included within the determination of the base tax levy subject to applicable future PTELL limitations.”
• The city will not issue any debt that will cause the city to exceed the debt limitation of 8.625 percent of the equalized assessed value (EAV) of all the properties within the city limits.
Also at Tuesday’s meeting, Mayor Gary Golinski outlined eight things the city could complete if home rule status is approved, citing a memo from Olson to aldermen. The proposals included:
• An improvement on the city’s bond rating. Olson wrote that, “Bond rating agencies are now including home rule/non-home rule designation as a major component of a factor related to financial flexibility in bond ratings.” Such improvements could save the city interest, Olson wrote.
• The city could incur debt beyond a 20-year time frame, extending payments for more years to match the life span of a project. Golinski said an example is the potential for a new Fox River water intake system. “If we’re going to spend $60 million on a project, it makes more sense to be able to debt it out over the useful life of it,” he said.
• Reduce property tax burden on residents by shifting the burden to out-of-town visitors, by using amusement taxes or food and beverage taxes, for example. “That’s what most municipalities use the home rule for,” Golinski said.
• Keep the City Council at its current size. Golinski said the city could be faced with a statutory requirement to increase the number of aldermen following the 2020 census.
• Administrative adjudication hearings. Golinski said being home rule would allow the city to reduce its required number of administrative adjudication hearings, which would save the city money.
• Reduce default speed limit to 25 mph in neighborhoods. Golinski said home rule status would allow the city to change the default speed limit from 30 miles per hour to 25 miles per hour in residential neighborhoods.
• Opt out of unfunded state mandates. Golinski said home rule status would allow the city to opt out of such mandates.
• Modify the zoning and planning process. Golinski said the city would be able to address tenant issues, such as the recent mold complaints by tenants at a local apartment complex, if it had home rule powers. “Our hands were very tied on that,” he said.