Responsible financial management in Orland Park?

I have received dozens of emails and heard many comments from Orland Park residents who are outraged that the Village finance department and village Manager Paul Grimes, and some of our arrogant village trustees, decided to wait until AFTER their re-elections to disclose that the village was in a financial mess.

I spoke with Mayor McLaughlin and he assured me before the election that things were tough in the village because of the downspiraling economy but we would survive. Now, he looks foolish. And so does the staff of the village, where some of the complaints have originated over the past week.

I am shocked, but not surprised. It is politics as usual in Orland Park. Mislead or even lie to the voters and paint a rosey picture before an election, and then when the election is over and you don't have to worry about repurcussions, casually let the cat out fo the bag.

Pathetic! I think Village Manager Paul Grimes should apologize for this lapse in judgment and failure to make this all public 10 WEEKS AGO! I also think Trustee Kathy Fenton who just ran for re-election should also apologize to the voters for allowing this to sneak past everyone, and she suddenly now shows concerns for the village's financial situation. It's phony!

Over $12 million in capital improvements in the village have been put on hold, we are now being told.

The newspaper reports are sketchy at best and not one reporter has a handle on how bad the situation really is. Is it $2 million or $3 million that had to be cut fromt he budget? How big is the budget deficit?

Mayor McLaughlin owes it to the people of Orland Park to put together a proper and complete statement and tell us precisely how bad things are. Put it in numbers and maybe issue it with the press releases that are always filled with happy talk, good news and events.

That's your job. Don't sit back and let Grimes do all the shuffling and waffling and obfuscation, mayor. Put together a detailed report on how bad things are and distribute it to the residents of the village. You are only making things worse letting it trickle out piecemeal through some incompetent village underlings and colleagues.

Give us the full picture!

-- Ray Hanania
http://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.

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

Give the TribLocal credit for hitting taxes on the head

TribLocal Reporter Heather MacDonald hit the nail on the taxing head in her story Thursday in the Chicago Tribune's popular weekly community newspaper insert (www.TribLocal.com). The lead was right on the mark, "Orland Park grapples with budget shortfall."

But more important than the spin that Village officials have been pushing hard to sell -- arguing it's not a "shortfall" but just a budget adjustment -- is that MacDonald also nailed the real issue in the story, the FACT that the Village Board is considering revoking the annual tax rebate it gives to its citizens.

Among cutbacks and savings the village is examining closely, MacDonald writes, "One issue still on the table for the village board is whether to continue the practice of rebating Orland Park's share of the property tax collected by Cook County, which totals $5.3 million."

Not every caught that point, which village officioals are telling everyone is not an issue. (Afterall, there is a village election coming up and I don't care how many "awards" the village wins, they don't add up to the benefit of rebating property taxes, which average around $250 per homeowner.

Other cuts include not spending the $24,000 for a "new filing system" for the Village Clerk, David P. Maher's office. (I guess that means paying to have Maher attend an Illinois Open Meetings Act workshop is out of the question?)

Ray Hanania
www.OrlandParker.com

Orland Park officials fight the use of the word "deficit"

Get ready to have sugar sprinkled all over your heads by Mayor Dan McLaughlin.

The Southtown/Star changed their headline to remove the word "deficit." Mayor McLaughlin, who only four months ago painted a rosey future of Orland Park's development for the Orland Park Area Chamber of Commerce, told members of a Village Board at a meeting that was intentionally not publicized Monday, that the village is about $4.8 million short. The village fiscal year begins Oct. 1 and during this next budget session, the village will expand the budget year by three months to carry it through all of 2009 and re-align the new fiscal year to begin Jan. 2010, village officials told the OrlandParker.com.

Officials insist that they have a "hole" or a "gap," and they desperately don't want to call it a "deficit" or a "shortfall," even though that is exactly what it means to have a budget that is short on revenues to pay for programs that are ongoing.

Either the village can find new monies or can trim existing programs.

The budget "shortfall" is no small amount. For example, $4.8 million represents about 4 percent of the village's estimated $127 million budget -- McLaughlin told the Chamber it was $127 and Grimes says it is $129. There's $2 million gine right there, or $2 million more. Who knows?

Imagine the impact on the city of Chicago with it's budget of $3.2 billion (for the corporate budget only) if they had a 4 percent deficit or a shortfall -- and Chicago City Hall reporters would use exactly those terms to describe the budget "hole."

The budget shortfall would be the equivalent of $128 million, and that would be a huge tax hole to fill.

The only way to fill deficits and shortfalls is to raise new revenues. In this economy, which was bad when McLaughlin addressed the Chamber of Commerce and sugar-coated them to applause and absolutely no critical challenge (who wantsto be on the bad side of a vengeful mayor?), it is going to be tough to raise any new revenues.

County Board dictator, er President Todd Stroger's repressive 1 percent sales tax hike slammed Cook County this week, forcing everyone to drive from the Southwest suburbs to Will County where the sales tax is far lower to save huge costs. The last thing we need is a tax increase in Orland Park.

You may not have noticed but home after home in Orland Park is being confiscated by the demons who work for the local banks, who donate huge monies to the political coffers of our elected officials. People can't pay their mortgages and it's not just that many had those rip-off balloon mortgages that exploded with increases. Gasoline prices are sky-high, thanks to President George W. Bush and a phoney war on terrorism he ordered to that Vice President Dick Cheney's company, Halliburton, can make billions in profits from the war profiteering and the crappy equipment they provide to our soldiers.

It's all tied together. No taxpayer is an island!

In the next few weeks, I'll start posting the forms and information about the procedures you will need to run for office in Orland Park and in the Southwest Suburbs. We need new faces, new ideas and a new enthusiasm if we are going to survive. There are some great leaders in office in Orland Park and other government offices, but there are far too many incompetents who think that doing what they are supposed to do is enough to earn your accolades. It's not!

Ray Hanania
www.OrlandParker.com

An Orland Park official I trust insists there will be no property tax increase

An Orland Park official who will remain nameless, who I trust, told me that the Village of Orland Park has no plans to increase taxes in Orland Park to address the projected budget "shortfall."

I normally do not trust elected officials given the past history of dishonesty I've encountered in 32 years of covering Chicago and suburban politics, but this one official I do trust.

The official also said that they may have to trim some programs back that have not received the kind of public buy-in that other more popular programs have received, in order to save money.

The economy has not been good for anyone, including in Orland Park, so these kinds of challenges, the official said, should be expected. The official said it isn't a "deficit," although my experience as a government reporter tells me a "shortfall" in any antiicpated budget is a deficit until it is filled.

As for the Public Notice, maybe saying "Not for Publication" was not a smart thing.

But, if this was the first budget meeting for the village, Mayor McLaughlin sure didn't start on the right foot of building public confidence by calling it in such short notice (Friday, June 27, for Monday, June 30 meeting). It made it seem like it is an emergency rather than "a normal process of reviewing the budget challenges" that face Orland Park, as the official, whom I respect, insisted.

More to follow (see other related stories below):

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

TALL GRASS CARTOON: Orland Park's budget woes ...

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Orland Park's sudden budget woes
"Tall Grass Cartoons"
July 1, 2008
Village of Orland Park
Read the post below on the story.
By Ray Hanania
http://www.orlandparker.com/

Orland Park has a What? Budget deficit? Since when? TAX Increase on the way!

Mayor McLaughlin broke the bad news to the Village Board Monday night, June 30, at a special meeting of the Village Board called by Clerk David Maher on June 27. The Village of Orland Park has a "budget deficit" of $4.8 Million. Considering the village budget is only $127 million, that's a huge deficit of about 4 percent. Huge!

Here is my prediction: Mayor McLaughlin is setting the stage to RAISE ORLAND PARK TAXES BIG TIME!

Here are some issues I have with the announcement:

I -- The first is a possible violation of the Illinois Open Meetings Act:

Maher may have violated the Illinois Open Meetings Act in posting the notice of the meeting: The notices are supposed to be posted publicly at least 48 hours in advance. But, in posting the notice of the Special Meeting, called on Friday June 27 for 6 PM Monday June 30 (the Open Meetings Act requires that notices be posted publicly at least 48 hours in advance ) , Maher added a little provision on his own to the top of the notice:

Posting publicly 48 hours ina dvance means posting it "publicly." But you can read the posting of the notice for the special meeting yourself and see that the Special Meeting Notice posted by Maher begins at the very top by stating "NOT FOR PUBLICATION."

What does that mean? Well, it means the Village thinks it can get away with calling a special meeting 48 hours in advance, without letting the public know. (They probably just let the media know so theyc ould be at the meeting and report it afterwards.) But, clearly, the Village Board and Mayor McLaughlin DID NOT WANT THE PUBLIC TO ATTEND TO ASK QUESTIONS.

II -- But the second issue has to do with the deficit itself:

What did Mayor McLaughlin know and when did he know it?

Every year McLaughlin gives a very glossy, shinny "State of the Village" speech to the members of the Orland Park Area Chamber of Commerce. Usually, McLaughlin brags about how great he is doing as Village President/Mayor.

In 2005, for example, McLaughlin told OPACC members:

"The Village has maintained its AA bond rating with both Standard and Poor’s and Moody’s. This is important and a big benefit when we sell bonds. The better bond rating allows us a better interest rate. Our budget for Fiscal Year 2005 was more than $131 million dollars and we are the seventh largest revenue producer in the State. We abated almost $1.5 million in property taxes which is a benefit to all property owners."

And it has been as cheery, and optimistic every year since.

Just four months ago, Mayor McLaughlin gave his most recent State of the Village Speech (February 27, 2008) at the OPACC's Installation Dinner for new officers. It was, once again, boring and very self-congratulating.

"There is a lot to go over in a short period of time. We have again prepared a handout that will be available that summarizes some of the things that have been done over the past year. I think you’ll be impressed."

The president of the OPACC thanked McLaughlin for his comments, saying:

"Thank you again to Mayor Dan McLaughlin for taking time from his busy schedule on Wednesday February 27th to address our Chamber members with his annual "State of the Village" message at Silver Lake Country Club. As always the event was well attended with over 130 chamber members on hand. We believe it is critical for our members to hear from the Mayor and other Village Officials about past accomplishments as well as any upcoming challenges, projects and goals that could impact the local business community."

"Upcoming challenges?" … What "upcoming challenges?"

McLaughlin noted that single-family "new starts" were down (new residential homes), there was an additional investment of $100 million in business investment, mainly many new restaurants in Orland Park …

He said there is still investment taking place and "confidence" in the community.

"The Finance Department received the Government Finance Officers Award for Excellence in Financial Reporting and was awarded the Government Finance Officers Distinguished Budget Award for fiscal year ending September 30, 2007. We continued to rebate the property taxes to the residents. This year we will be rebating over $5 million. We also are continuing to abate property taxes, which is beneficial to businesses.

"This year over $2.5 million in property taxes will be abated in addition to the mount that’s being rebated to the homeowners. The village continues to be ranked eventh in the State in terms of sales taxes and holding strong. This might be the time to mention that we just passed our 2008 budget. The budget is about $127 million. I found in my collection something that might interest you. This is the reasurer Report for the State of Illinois. It says that the amount of all funds in the State Treasury as of this date is $2.4 million. Of course, that was 1878."

No. What would interests us, Mayor McLaughlin, is how in three months, the Village of Orland Park's financial situation went from such a rosey and cheery picture that you painted to one that is bleak and disconcerting?

Coincidentally, our former Village Manager Robert J. Zeder resigned his post on November 5, 2007. What did he know and when did he know it?

He was just replaced by Paul Grimes, who bragged that one of his specialities was dealing with a budget deficits. Grimes, a U.S. Navy veteran, worked in the private and public sectors. He was last a business development executive with United Healthcare in Warwick, R.I. And before thatm he was director of administration for Cranston, Rhode Island, a city of 80,000 where he helped close an $11 million deficit by both cutting services and raising taxes.

The talk now is that McLaughlin says he can cut expenses that he detailed at the SECRET SPECIAL BOARD MEETING where the notice was NOT FOR PUBLICATION.

But not $4.8 million. So it turns out that Paul Grimes is not just the new Village Manager. He's our new Village Political Grim Reaper!

I've emailed questions to McLaughlin, Grimes, Maher and some members of the village board. We'll see how they respond.

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