We were surprised to learn about the proposed increase in sales taxes in Carbondale. Mayor Brad Cole and City Manager Jeff Doherty are offering a .5 percent increase in sales taxes that may generate about $2.3 million annually. The revenue will be used to address capital projects such as a police station and a fire station; develop open space with the addition of bikeways and sidewalks; and contribute about $1 million a year to Saluki Way, the initiative at SIUC that includes the replacement of McAndrew Stadium and an upgrade to SIUC Arena.
It was this last item, a $1 million per year donation to SIUC for 20 years - that had us scratching our heads. It is simply unprecedented. As Mayor Cole acknowledges there is not an example of this sort of thing in any college town in Illinois, and perhaps anywhere in the United States.
Maureen Berkowitz, the Chief County Assessment Officer of Jackson County said that she was puzzled as well. Mayor Cole opposed the .5 percent sales tax increase for a county public safety tax, an initiative that failed narrowly in a referendum. "I remember that Mayor Cole took a reporter to Best Buy and pointed out the increase in costs caused by taxes in a big screen TV," she recalled. Berkowitz was also concerned that this increase would "close the door" on other tax initiatives since it will raise the rate to 7.75 percent - a dangerously high level. Southern Illinois University already benefits from Jackson County property taxes of $792,254.53 that went to the Southern Illinois Airport Authority in 2006. While SIU pays a portion of the fees at the airport, without the tax levy the costs would be substantially higher. The Airport Authority began taxing in 1946, no doubt with the idea that it would bring commerce to the region. But there are no commercial flights, according to Airport manager Gary Schaffer, and haven't been since 1996.
Councilman Joel Fritzler points out that "SIU students are responsible for a large portion of the sales tax that the city collects. Last year, the sales tax for on-campus purchases was increased 1 percent when SIU annexed property into the city under threat of losing fire protection�.with the already substantial increase to student fees (to fund Saluki Way), another increase in the sales tax would be unfair."
What our neighbors want to know is what is the best thing for the community and the university? Many of us thought that improving the town so that it is a beautiful, safe college community is the best way to attract and retain students, faculty and staff. The sales tax increase does pay for some of that with police, fire and greenspace. But, the $1 million a year for a sports complex, at a state institution, is hard to follow. Why not place the money "inside the city?"
Mayor Cole argues that "I think we have to consider SIU as 'inside the city.' If we don't, one day it won't be and there will be no city. They need our help, that is no secret. Maybe this is or is not the best way to provide help, but it is 'a' way and that's what I'm proposing."
Oddly, the city of Carbondale has no property tax. Since 70 percent of the residential property is rental, then landlords are the major beneficiaries of windfall of millions of dollars.
Perhaps it would be worthwhile to explore a property tax to fund some of these projects, instead of a regressive sales tax that taxes students twice. Remember, we're trying to increase the enrollment at the university. And sales taxes can take a nose dive in tough economic times. Then what do you do?
It's a great turn of events that the city and the university are becoming closer partners. But, this particular initiative may not be best for the city or the university. To obligate the city to 20 years of $1 million payments for a state-owned sports complex is a difficult proposition. But, by far the most important thing is to involve our citizens in this discussion. A referendum seems in order. This is a mighty big decision.
D. Gordon and Jane Addams are residents of the Arbor District in Carbondale. They write about neighborhood concerns.
Posted in Guest on Sunday, July 29, 2007 12:00 am
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