Belleville sets budget hearing

Mar 2, 2010 — Belleville News-Democrat

Laura Girresch

Mar. 2, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- BELLEVILLE -- The city has set a date for residents to weigh in on next year's budget, including a proposed $20 tax on vehicles registered in the city.

The City Council at its Monday meeting set a public hearing for 7 p.m. March 29 in the City Council chambers at City Hall, 101 S. Illinois St. The council will vote on the final budget and the new tax at its 7 p.m. meeting April 5.

Five Belleville businessmen expressed to the council their support for the wheel tax. All of them said the last thing they'd want is a cut in police service.

"This is more an insurance policy than it is a tax," said Phillip Paeltz, headmaster at Governor French Academy.

Conveying similar sentiment were Rogger Wigginton, owner of clothing store Don Rodgers Ltd; John Conkright, owner of Ben's Crafts and Floral and three other downtown businesses; Dave Nagle, owner of Dave's Home Brewing Supplies, Allison's Common Scents Shoppe and The Wine Tap; and Brian Besse, owner of Seven Restaurant and Lounge.

Only Rick Brown, owner of Mobile Home Supply in Belleville, criticized the city's action regarding the wheel tax. He thinks the decision to preliminarily approve the tax was made unfairly following a "secret meeting."

Mayor Mark Eckert said the council's vote to include the wheel tax in its proposed General Fund budget was not a final move on the tax, but rather the start of a four-week process of considering whether to reinstitute the tax, which was in place from 1920-95.

He has said city coffers need the tax, expected to generate up to $650,000 after administrative costs, in order to not lay off about 24 employees, about 6 percent of the total city staff. He said the city has been forced to take drastic measures because of the loss of $775,000 in reimbursements from the state, and that layoffs would mean cuts in service, including from the police department.

Brown also criticized the city's purchasing of property, including the Meredith Memorial Home on the Public Square, during a time of financial crisis. The council on Monday approved obtaining a loan from Commerce Bank for up to $500,000 to buy the property from the Catholic Diocese of Belleville.

Eckert during Monday's meeting explained to those in attendance that different funds can only be used for certain purposes. For example, tax increment financing funds, such as those that could be used to pay for the Meredith Home, can't go toward police salaries, according to state law.

The diocese was losing money on Meredith Memorial, so it decided to shutter the place. Eckert said city leaders have no interest in keeping the building, but that they hope to guide development there. The city is buying the property with a bridge loan, on which it will for now pay interest only -- about $16,000.

The council also approved a new tax increment financing district for the planned $20 million Belle Valley III industrial park. The park is on about 190 acres sandwiched between Green Mount Lane and Illinois 15. The existing two phases are part of another tax increment financing district, and they're nearly full. About 30 businesses have located there, and only one lot has yet to be purchased.

The Belle Valley III district will be the city's 21st.

Contact reporter Laura Girresch at lgirresch@bnd.com or 239-2507.

Newstex ID: KRTB-0023-42474731