Orland Park finally admits raising property taxes this year

Don't believe the misleading interpretations of the numbers being offered by the Village of Orland Park. The village is are playing a shell game and it is very importan tto them because Mayor Dan McLaughlin and three trustees, Brad O'Halloran, Kathy Fenton and Jim Dodge are running for re-election. And they are being challenged forcefully by Gerald Maher and his slate of candidates. Click HERE for a story on that.

For example, the village officials point out that the property tax increase of $17 million over last year is in fact higher because the taxing year has been extended from 12 to 15 months. That's true, but the fact is that property taxes are going up significantly, after the village claimed that they would not!

Why are they going up? To pay off pension debt and pay raises for its employees.

The village claims "most" of the property taxes will be rebated to taxpayers.

That is CLEARLY NOT true.

The village is rebating ONLY $4.5 million in property taxes this year. That is out of a property tax levy that is more than three times that number!

Click HERE for the story I wrote when the data was published by the Village in the Orland Park Prairie Newspaper December 4, 2008. Check the data out for yourself before you believe the misleading information and spin from the village.

Here is the story in this week's Orland Park Prairie, in which village officials were forced to address the issue when I wrote about it back then. (I've received more than 100 emails from shocked residents on thsi topic alone).

Make sure to read the part in my story about how the village has broken its promise to rebate the property tax levy, an issue Mayor McLaughlin WILL NOT DISCUSS with me. (He emailed me responding two weeks ago to the FACT that his street was one of the first to be plowed during the snow storm we had.)

By the way, if you haven't noticed, the SouthtownStar and the Orland Park Prairie are in a newspaper war in Orland Park. The SouthtownStar has suddenly taken a deep interest in Orland Park showcasing not only the local politics but also spotlighting local businesses. We need competition out here to get the facts out and the newspaper war is welcomed!

-- Ray Hanania
http://www.orlandparker.com/

Village of Orland Park plans whopping 17 percent property tax levy hike

The front page of the Orland Park Prairie, my favorite newspaper, reports what can only be called a real Christmas Miracle:

"Retail Vacancies filling up in Orland."

According to the story, while the rest of the nation is seeing retail businesses closing and abandoned space increasing, "that's not completely the case in Orland Park."

Now, I started laughing because I thought, wow that is one of the funniest jokes I have heard in a long time.

Imagine, two businesses plan to expand and an estimated 15 have closed in the past year. In fact, when you drive around Orland Park, all you see are empty storefronts. In practically every mall.

According to Orland Park Village Clerk David P. Maher (father of Patrick Maher who jacked up ambulance fees mainly for senior citizens at the Orland Park Fire Protection District, but not related to Gerald F. Maher who is running for Orland Park Mayor on a reform hold-the-line on taxes platform), property taxes in Orland Park are going to increase -- significantly.

I'll repeat that. They are going to increase, significantly.

Oh, but that's not even the biggest story of the year. The biggest story is that while the members of the Village Board have been spinning yarns about how they "saved" the property tax rebate, it turns out that the rebate is actually far less than they even admitted it would be.

Now, again, I have to rely on Clerk Maher's numbers. Maher states in the apparent paid advertisement in the paper that last year's property tax rebate was $15,303,532, and that this year's property taxes to be levied for 2008 are $17,905,671. (The Ad is framed in a thick black border, much like a funeral notice.)

That is a $2.6 million increase in property taxes, for starters.

But what is really significant? Well, Mayor Dan "Happy talk" McLaughlin announced that because of the village's financial problems, they would be short $4.8 million. To compensate for the shortfall in spending -- which means the village is spending more than it receives in revenues (which are all taxes) -- they would cut back on many things, including reducing the annual Property Tax Rebate.

The local newspapers reported that village officials are sighing relief that the "Property Tax Rebate" is "intact" -- remember that cute little word? Intact!

Wow.

Do the math folks.

They "capped" the rebate at $4.5 million this year. In fact, as I was writing this, I received a automated telephone call from the village reminding me that I had to get my tax rebate forms in by Dec. 13. They even have a hotline (708-403-6116) if I had any questions. And I do.

So, if the property tax rebate is being capped at $4.5 million, and the property taxes actually being levied for 2008 are $17,905,671 ... duuuh! ... that means the "Property Tax Rebate" is far from being "intact."

It means that the village is only rebating exactly 25.1 percent of the village property taxes.

They are KEEPING 74.9 percent of the property tax that they used to rebate every year.

Some village observers estimated that you would get about 60 percent of your property tax rebated. But, as you can see, that's not true. In fact, if two thirds of the homeowners failed to file their rebate forms in time before the village deadline, you stll wouldn't get that much in a rebate.
The $4.5 million "cap" will be divided based upon how many homeowners file for rebates. Let's assume that will be the same as last year? Which means that you WILL get only 25 percent of what you paid.

Nevermind the other OBVIOUS story, that the village is increasing property taxes on residents by a whopping $2,602,139. That represents an increase in your property taxes of 17 percent.

The Village of Orland Park is going to raise our property taxes 17 percent.

The village plans a special meeting on Dec. 15 at 7 pm to discuss all this.

-- Ray Hanania
http://www.radiochicagoland.com/

Property taxes skyrocket -- local fees quietly increase too

After months of backdoor tax increases from the Village of Orland Park, my actual Water Rate did go up this last bill, 19 cents per unit of water I consume every two months, or about $1.61.

But the bulk of the increases reflect backdoor tax increases (fees) quietly approved by the Village of Orland Park while they have been telling the sympathetic local news media that they are not increasing taxes and are rebating our village taxes -- well, not all of it. But according to one paper, that's "good news."

No. It's mnot good news, especially when the other fees in our water bill, for example, increase quietly, too, with noe xplanation from Mayor McLaughlin, or, as I will be calling him from now on, King Dan. Under King Dan's Chicago Machine Manual of Politics, you don't explain anything. You just keep putting out press releases showcasing the positive news, and avoid any accountability or explanation on the bad news. And, when the media does hold his royal feet to the political fire, no wonder he is so arrogant and believes he can do whatever he wants.

Storm water and sewer service also went up. The others, went up already months ago.

On top of it all, it's just a drop int he bucket of how you, the naive sheep-like taxpayers, are being screwed. But that's the way you like, it right. Rough. And without warning or consent. Because in this Chicago Machine town, which is a satellite of the bigger Machine in Chicago and Cook County, raising taxes is just a part of the blame-game.

Have you looked at the letter from Cook County Assessor Jim Houlihan this week, announcing a major increase in your property assessed valuation?

Oh yea. While your property values are dropping like federal indictments in a typical Chicago City Council year, your property assessments are skyrocketing. Most homes will increase about 15 percent in assessments, even though the actual value of the homes has dropped by as much as 30 percent and more in some regions.

Nayor Daley, Kig Dan's sponsor, says it is because of Houlihan. Daley -- I have to laugh every time I hear him speak -- says (that's being generous) that Houlihan is responsible because he is the "Assessor."

No, Mayor. The Assessor does not determine the assessments. The assessor basically translates the tax increases divide up based on the number of homes and properties being taxed, and that's how your assessment increases.

But Daley knows the blame game better than most. In reality, the reason for your property tax hike -- which will equal as much as $1,000 to $2,500 for many homes in Orland Park and across Cook County -- is that Mayor Daley has increased his budget and it is the increase in government spending that is driving up taxes. Daley's pal, Cook County Board President Todd Stroger, also jacked up his own budget spending, and part of that spending will be covered by the humongous increase in the sales tax -- which combined with the King Dan .75 sales tax increase of 2001 (which King Dan said would be off-set by the village tax rebate, which is being off-set this year by his political arrogance and poor budget management to just over half of what it was promised to be) -- is making your depressed property on the free market look like a worthless piece of junk. But on the Chicago and county and Orland Park tax rolls, it looks like a mansion that has increased significantly in value.

The value of your home goes down. But not Mayor Daley's salary or Todd Stroger's salary. You pay more. And Daly and Stroger know of stupid you really are, so gullible you will believe anything they say and still vote for them in exchange for a new garbage can lid -- the bartering system set up when the Chicago Machine was first built by slaves in the 1950s.

And the taxes on your home go up.

And the lies and twist, and turns, and spin from the elected officials, including King Dan, continue. No accountability at all. They just decide they will break their promise to off-set the Orland Park home rule sales tax increase of .75 percent by rebating our full property tax. They did it just long enough to win your votes. Gain your confidence. And then. WHAM!

They shove it up your tax bill.

Merry Christmas everyone.

-- Ray Hanania
www.RadioChicagoland.com

Inundated with letters and thanks ...

I am humbled by how many people now read this blog in Orland Park and by all the email letters I am receiving. Thank you.

I try to reply to every email. I know that Orland Park is run by a vindictive dictator so I am careful when I do post a letter I will not post your name to protect you from Mayor McLaughlin's wrath. The guy is just mean.

But clearly, from the emails from within the and from the employees, there is a LOT of dissastifaction in Camelot.

Residents are upset about the rising fees, and the taxes, and the mayor's broken promise on the tax rebate. You should be. You deserve better.

If Orland Park is going to be the great town all the fluff and PR claims it already is, the mayor will have to do a better job of managing the excess waste in government and trim the fat, starting with his office.

It is amazing how the Mayor is responding directly to this little blog by pushing fluff press releases in the local newspapers that talk about how great he is and how great his programs are and how great everything he does is.

Congratulations Your Greatness!

-- Ray Hanania
http://www.orlandparker.com/

Also, sign up for my new newsletter for my radio show, columns and blogs. Go to

http://www.TheMediaOasis.com/tv/Newsletter.htm

Okay, here's a simple question for Mayor McLaughlin

If you gave us the property tax rebate as a way of off-setting the .75 home rule sales tax you imposed -- telling us that by returning the property tax through rebate it would compensate for the sales tax increase (and keep it focused on non-residents who come to orland Park to shop.)

Well, now, you'r trimming the property tax rebate, but you're kepping all of the .75 sales tax. It sounds like an election gimmick?

Bet that's a question you won't read in the local newspapers :)

-- Ray Hanania
www.RadioChicagoland.com

Orland Park tax Rebates WILL be lower, not "might be"

Orland Park officials said it clearly that the budget problems (and didn't say their failure to look ahead) would cause them to alter the way they define the village tax rebate and return only a portion of it to taxpayers.

That's a reversal on their promise to return the entire village tax rebate to homeowners that they insisted they were doing not as a political move but to compensate for the huge amount of retail stores they had attracted to Orland Park which has caused an enormous traffic jam in the village for the past decade. The traffic has been terrible.

The village said they would deduct a portion to pay the pension bill for the village to cover the enormous pension benefits for the villages elected officials -- why not just give yourselves a pay increase, too while you are at it, and hire a second over-salaried person to work with the high-salaried Village Manager you already hired, Paul Grimes. Or, maybe, buy a few more homes including from a few people you know, and then try to resell them to help them out -- not the village of course.

It would be nice if the media pretending to cover the Village of Orland Park "full time" at least got the story right. Everyone else int he village knows the facts.

Tragic.

-- Ray Hanania
www.RadioChicagoland.com

Orland Park's officials must think we're just plain stupid

First it was the "official spin." Don't worry, everything is fine in Orland Park. We (government elected officials) haven't screwed up, it's the bad economy that blind-sided us. We didn't know it was coming. We have a little budget problem ($4.8 million) short of what we need to cover the services we have been providing, but we have a new village manager from Rhode Island who will take care of it all. (He's staying in one of the homes that the village stupidly bought and is having a hard time re-selling for what it paid.)

Then it was, everything is "intact," including the Property Tax Rebate. Don't worry people of Orland Park. No need for you to worry your empty little brains. You haven't cared before, so why should you care now? We'll take care of it.

And then, it was, well, the Property Tax Rebate is going to be cut because some of the money should be going to cover the pensions, which means money that was going to cover the pensions can be used someplace else.

Then they fed the media stories about how Orland Park's Property Tax Rebate is far more generous than other communities, setting the stage for the big scissors.

Now, it's the Property Tax Rebate is going to be "capped."

Next thing, the Property Tax Rebate is going to be eliminated.

I have one question -- it's not easy getting questions answered from this administration -- they only want to talk to the media that embraces their spin (in exchange for advertising, of course): Do you think the village is in trouble because it paid millions to purchase certain, selected homes alleged to have had serious flooding problems -- while so many others that had flooding problems were ignored -- and the village can't resell those homes today to recoup the money they spent?

Or, possibly, is it because the village failed to see the economic signs, claiming as recently as Mayor Dan McLaughlin's speech to the Orland Park Area Chamber of Commerce that everything is fine. What's to worry? So no one did?

Or possibly, the village is trying to scurry to come up with enough obfuscation so that when it comes time for their re-elections -- in a few months -- they won't have to worry about losing their jobs?

Just some questions from an Orland Park taxpayer.

At least one newspaper is talking truth about Orland Park's budget problems

It amazes me how easily local newspaper reporters have allowed Mayor McLaughlin and the Orland Park Village Board to tell residents, "Don't worry, everything is intact." There is a $4.8 million budget shortfall, a word the village doesn't like, and no one seems to really care, and the only real answer so far is to cut the property tax rebate by 35-40 percent.

The biggest mistake is in accepting the false claims by the village that "everything is okay" with the property tax rebate and that increases in fees are okay because there are other places that charge far more. Isn't that why Orland Park is BETTER than other communities?

The truth is, things are not going to be okay, even though Mayor McLaughlin is on record only a few months ago patting himself on the back claiming Orland Park is financially sound and has no problems.

The Regional, at least, has outlined the cuts in services and the increases in costs that the Village is considering. And increases in fees are soft tax increases because "fees" are a form of taxes.

The Regional's mistake was to play the property tax rebate at the bottom of their story. It's the LEDE! It's what people really care about. The real headline that every newspaper missed is this:

Village Proposes Major Cut in Property Tax Rebate

Every paper has been afraid to say that. Too bad. That's the real story out here. That's what everyone is talking about. That's what concerns everyone.

How about some real reaction from real residents of the Orland Park, instead of printing word-for-word the press releases issued from McLaughlin's office? I can read the same press releases on the village web site (which is very good because the village has one of the nation's top IT Departments and staff). Why do I need to read them in a local newspaper. Word-for-word?

The village has a $3 million hole in the pension fund and they need to take it out of the capitol budget so they are going to cut the property tax rebate by as much as 40 percent -- that's huge -- and shift the savings to the pension funds.

That's outrageous! Do the math, people. You're getting screwed. But maybe you don't care. Or more likely, you think there is nothing you can do about it.

There is something you can do about. Make your voices heard. Tell the village that just because some things are great in Orland Park (some dude in New York working at Money Magazine says we're one of the best places to live, not as great as last year but still on their list, way down), it's not acceptable for them to hide behind that to do things that are not so great.

Orland Park is one of the best places to live not because of the government doing their job, but because of the people who live here. We're a great community.

Although nothing has been formally approved by the village yet and all the proposals from our newly hired village manager Paul Grimes are just that, proposals, you, the community, can still stop the changes. Each and every trustee has to vote on the changes. You can make your voices heard.

Recreation Department fees may increase 10 percent. That's huge.

Costs for other services are going to increase, too.

They're not talking about the routine increases that the news media has failed to cover like the increases int he Water Bill -- 60 percent of which are unrelated to the increase in the cost of water. (That's only 40 percent of the bill.) The village is increasing fees for sending you the water bill, and collecting garbage, sewer services and rain water drainage.

I say if the village board can't protect the property tax rebate, then they don't belong in office any more and we should find someone else. And Paul Grimes can go back to where he came from. He's starting to sound more like a Chicago Machine Bean Counter than someone who understands what makes Orland Park what we really are.

Ray Hanania
www.OrlandParker.com

Budget shortfall Shell Game -- Everything is "Intact!"

Click comic strip to view larger image
Ray Hanania's World Comic Strips
July 30, 2008
The Village of Orland Park claims that all of the village services and the highly touted property tax rebate is "intact." Not fully intact, but intact!

When you scale back a rebate, you are raising taxes

Orland Park officials are very creative. They've done a great job in spinning the budget deficit of $4.8 million, according to news reports this past week. It is really amazing. What's more amazing is residents of Orland Park don't care that they are going to pay more in taxes, even though village officials are saying they are not raising taxes.

Let me give you a civis lesson in municipal budgets.

When you collect a tax and then give it back. It is called a rebate. When you rescind all or part of a tax rebate, you are raising taxes.

In otherwords, you can't have it both ways and claim you are doing the taxpayers a favor by rebating the village portion of their property taxes, and then claim you are doing the taxpayers a favor when you say you will scale back the rebate by as much as 1/3.

The headlines of the news stories about the issue are hysterical, especially if you don't care about the rising taxes in Orland Park.

The Orland Park Prairie, my favorite local newspaper, wrote:

At a budget meeting held Thursday, July 24, the revised, balanced budget was presented to the board with village services left fully intact."We've balanced our general fund budget by making cuts, none of which will affect the services the village offers," Finance Director AnnMarie Mampe said.

Village services left intact. Maybe I read that wrong. Fees are going up. Some recreation programs are being shuffled around and trimmed. The Village Portion Property Tax Rebate that Mayor McLaughlin and the board have touted as proof that they are the best leaders in the Southwest Subrubs is being curtailed DRAMATICALLY. It really amounts to a significant increase in your property taxes, because, well, THE BOTTOM LINE IS YOU ARE GOING TO BE PAYING MORE.

But then, maybe you don't care. Chances are your home hasn't been foreclosed on by the bank so you have lots of money to spare. Or maybe, you are one of the mayor's chums and are doing pretty well with that connection.

This is what the Southtown/Star wrote:

Orland Park has found a way to make up for a $4.8 million budget shortfall in its operating budget without cutting village services or raising taxes. The village's annual practice of rebating local property taxes also is safe, but the formula likely will change.

I know the sigh of relief that we're going to get our village property taxes rebated is overwhelming. Well, it will remain "intact."

Well, not really "intact," though.

Later in the story, the reporter wrote:

The board is proposing to change the way it rebates residents' property taxes, Mampe said.
The change would provide more money for the village's capital improvements, Mampe said.
Under the existing formula, if a taxpayer pays $200 in property taxes to the village of Orland Park, then the village uses what it collects in home rule sales taxes to rebate the entire $200. The rebated amount includes what is levied for pensions.
Under the proposal, the taxpayer who pays $200 in property taxes to the village would receive $133 back, and the remaining $67 - the amount levied for pensions - would go toward capital improvements.

Can you say SHELL GAME.

Ah. I paid $200 in taxes and used to get it all rebated. Now, under the rebate plan that the media reports isn't really changing, I'm only going to get $133 back and the remainder will go to fund the pensions of, well, the people who are making the decisions in the village. Not you, the taxpayer, the circus people at Village Hall.

So, they have split up the village property taxes into two parts. One if the actual property tax, and the other is the property tax (that goes to fund the pensions.)

Hmmm.

There is no question in my mind that McLaughlin really understands creative financing.

I want to keep paying my "Water Bill" but since the Water Bill doesn't just include water, but also garbage removal and a hefty tax increase in village fees for the administration of that bill, I will just deduct the 60 percent of the "Water Bill" that isn't really the "Water Bill" and, according to village logic, valla! I will have restructed the Water Bill payment, keeping it "intact." I just won't pay it.

I don't think McLauglin would go for that at all.

Shell Game. It's a new program the village is going to offer as a part of its Winter programs to keep their salaries (and raises) "intact."

Ray Hanania
www.OrlandParker.com