Clarendon Hills
Home Rule
Informational Session
January 18, 2012
Home Rule Discussion in
Clarendon Hills
Current Financial Condition of
the Village
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AAA Rating given in 2011
Only 2% of municipalities in Illinois have
attained a AAA rating from Moody’s,
Fitch or S&P.
Until now have maintained at least 40% of
annual costs in reserve
General Fund
Expenditure Summary
Misc.Administration/
Transfers
3%
President/Board/
Commissions
1%
Administrative/
Finance
10%
Community
Development
5%
Public Works
15%
Police
44%
Fire
17%
President/Board/Commissions $85,680
Administrative/Finance $620,970
Police $2,700,805
Fire $1,044,700
Public Works $902,915
Community Development $326,960
Misc.Administration/Transfers $400,150
*Not Including POC Firefighters
Fire Costs Vs. Calls
Contracting and Shared Services
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Engineering
Building/plumbing/electrical inspections
Plan reviews
Information technology
Various Public Works services
Shared 9-1-1 dispatch
Regional major crimes investigations
Automatic mutual fire aid agreement (Hinsdale)
Library shared services: IT, payroll, tax levy, snow removal,
phone
Liability and health insurance pools participation
Exploring shared police service model with Hinsdale
Budget Reductions

Budget Reductions = $227,065 in FY 11-12

Budget Reductions = $1.76 million in
FY 08-09 through FY 10 -11

Total Budget Reductions = $1.98 million;
including $1.1 million in cuts, $904,000 in
deferrals
Budget Reductions
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Elimination of out-of-state employee training/benefits, reduction in
other training
Establishment of new compensation plan eliminated cost of living
increases for non-union employees
Reduced infrastructure maintenance, tree trimming, sidewalk
replacement and general beautification
Elimination of downtown sidewalk snow removal program
Reduction of downtown planting program, replacement with
sponsorship program
Elimination of positions in Community Development, Finance, and
Police Departments
Deferral of several capital purchases
Increase in employee insurance copays
Personnel vs. Non-Personnel Costs
General Fund
Budgeted Revenues
History of General Fund
Revenues and Expenditures
Future Concerns
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Reduction in revenue sharing from the State
Additional unfunded mandates
Aging infrastructure
Costs out of Village’s control
21% of the General Fund’s expenditures go
toward pension and healthcare premiums
Future Concerns


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Lack of sales tax base
Slow down in real estate growth
Dependence on property tax
General Fund Balance Projections
No Additional Revenues
*Assumes expenditures increase by 5 percent.
General Fund Projections
Revenue Assumptions
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Taxes increase by 2.5%.
Intergovernmental Revenues (Income Tax, Sales
Tax, State Use Tax) increase by 1%. Also
includes estimated revenues from Infiniti
dealership.
Licenses and Permits increase by 2%.
Services Charges increase by 2%.
Fines and Miscellaneous increase by 3%.
Investment Income equals 2% of prior year fund
balance.
General Fund Projections
Expenditure Assumption


Expenditures increase by 5% annually.
Average Increase over past 5 years
General Fund Balance Projections
No Additional Revenues
*Assumes expenditures increase by 4 percent.
Capital Fund Balance Projections
No Additional Revenues
If additional revenue sources are not obtained, the Village would need to choose between
funding operations or capital improvements. Based on the Village’s current ten year capital
plan, the Capital Fund balance would be depleted by FY2019.
Impact of continued cuts
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Slower administrative response times due to reduced hours
Reduction in community event support
Reduced CBD beautification/maintenance
Slowing down of road/capital program implementation
Scaling back or elimination of new rolled concrete curb
installation’s throughout town
Elimination/scaling back of non-core functions such as
DARE
Decreased ability to review operational efficiencies
What is Home Rule?
What is Home Rule?
Constitution of the State of Illinois:
Adopted at special election on December 15, 1970
Article VII, Section 6: Powers of Home Rule Units
A County which has a chief executive officer elected by the
electors of the county and any municipality which has a
population of more than 25,000 are home rule units. Other
municipalities may elect by referendum to become home rule
units. Except as limited by this Section, a home rule unit may
exercise any power and perform any function pertaining to its
government and affairs including, but not limited to, the
power to regulate for the protection of the public health,
safety, morals and welfare; to license; to tax; and to incur
debt.
Source: http://www.ilga.gov/commission/lrb/conmain.htm
Home Rule in Illinois
Addison
Algonquin
Alsip
Alton
Arlington Heights
Aurora
Bannockburn
Barrington Hills
Bartlett
Batavia
Bartonville
Bedford Park
Belleville
Bellwood
Benton
Berkeley
Berwyn
Bloomingdale
Bloomington
Bolingbrook
Bridgeview
Bryant
Buffalo Grove
Burbank
Burnham
Cahokia
Calumet City
Calumet Park
Carbon Cliff
Carbondale
Carlock
Carol Stream
Carpentersville
Carterville
Champaign
Channahon
Chicago
Chicago Heights
Chicago Ridge
Christopher
Cicero
Collinsville
Country Club Hills
Countryside
Crainville
Crystal Lake
Danville
Darien
Decatur
Deerfield
DeKalb
DePue
Des Plaines
Dolton
Downers Grove
DuQuoin
East Dundee
East Hazel Crest
East St. Louis
Edwardsville
Elgin
Elk Grove Village
Elmhurst
Elmwood Park
Elwood
Evanston
Evergreen Park
Fairview Heights
Flora
Forest View
Freeport
Galesburg
Glen Ellyn
Glendale Heights
Glenview
Glenwood
Golf
Granite City
Gurnee
Hanover Park
Harvey
Harwood Heights
Hazel Crest
Herrin
Highland Park
Highwood
Hillside
Hodgkins
Hoffman Estates
Homer Glen
Hopkins Park
Inverness
Jacksonville
Johnston City
Joliet
Kankakee
Lake Barrington
Lake Bluff
Lake Forest
Lake in the Hills
Lansing
LaSalle
Lincolnshire
Lincolnwood
Manhattan
Marion
Markham
Mascoutah
Maywood
McCook
McHenry
Mettawa
Midlothian
Moline
Monee
Monmouth
Morton Grove
Mound City
Mount Prospect
Mount Vernon
Muddy
Mundelein
Murphysboro
Naperville
Naples
Nauvoo
New Lenox
Niles
Normal
Norridge
North Chicago
North Utica
Northbrook
Northfield
Northlake
Oak Forest
Oak Lawn
Oak Park
Oakbrook Terrace
O'Fallon
Old Mill Creek
Onarga
Orland Park
Oswego
Palatine
Park City
Park Forest
Park Ridge
Pekin
Peoria
Peoria Heights
Peru
Phoenix
Plainfield
Posen
Prairie Grove
Quincy
Rantoul
Riverdale
Riverwoods
Robbins
Rock Island
Rockdale
Rolling Meadows
Romeoville
Rosemont
Round Lake Beach
Saint Charles
Sauget
Schaumburg
Schiller Park
Sesser
Sherman
Skokie
South Barrington
South Holland
Springfield
Standard
Stickney
Stone Park
Streamwood
Sycamore
Thornton
Tilton
Tinley Park
Tuscola
University Park
Urbana
Valmeyer
Volo
Warrenville
Washington
Watseka
Waukegan
West Chicago
West City
West Dundee
West Frankfort
Westmont*
Wheaton
Wheeling
Williamsville
Wilmette
Winnetka
Woodridge
Home Rule in Illinois
Addison
Algonquin
Alsip
Alton
Arlington Heights
Aurora
Bannockburn
Barrington Hills
Bartlett
Bartonville
Bedford Park
Belleville
Bellwood
Benton
Berkeley
Berwyn
Bloomingdale
Bloomington
Bolingbrook
Bridgeview
Bryant
Buffalo Grove
Burbank
Burnham
Cahokia
Calumet City
Calumet Park
Carbon Cliff
Carbondale
Carlock
Carol Stream
Carpentersville
Carterville
Champaign
Channahon
Chicago
Chicago Heights
Chicago Ridge
Christopher
Cicero
Collinsville
Country Club Hills
Countryside
Crainville
Crystal Lake
Danville
Darien
Decatur
Deerfield
DeKalb
DePue
Des Plaines
Dolton
Downers Grove
DuQuoin
East Dundee
East Hazel Crest
East St. Louis
Edwardsville
Elgin
Elk Grove Village
Elmhurst
Elmwood Park
Elwood
Evanston
Evergreen Park
Fairview Heights
Flora
Forest View
Freeport
Galesburg
Glen Ellyn
Glendale Heights
Glenview
Glenwood
Golf
Granite City
Gurnee
Hanover Park
Harvey
Harwood Heights
Hazel Crest
Herrin
Highland Park
Highwood
Hillside
Hodgkins
Hoffman Estates
Homer Glen
Hopkins Park
Inverness
Jacksonville
Johnston City
Joliet
Kankakee
Lake Barrington
Lake Bluff
Lake Forest
Lake in the Hills
Lansing
LaSalle
Lincolnshire
Lincolnwood
Manhattan
Marion
Markham
Mascoutah
Maywood
McCook
McHenry
Mettawa
Midlothian
Moline
Monee
Monmouth
Morton Grove
Mound City
Mount Prospect
Mount Vernon
Muddy
Mundelein
Murphysboro
Naperville
Naples
Nauvoo
New Lenox
Niles
Normal
Norridge
North Chicago
North Utica
Northbrook
Northfield
Northlake
Oak Forest
Oak Lawn
Oak Park
Oakbrook Terrace
O'Fallon
Old Mill Creek
Onarga
Orland Park
Oswego
Palatine
Park City
Park Forest
Park Ridge
Pekin
Peoria
Peoria Heights
Peru
Phoenix
Plainfield
Posen
Prairie Grove
Quincy
Rantoul
Riverdale
Riverwoods
Robbins
Rock Island
Rockdale
Rolling Meadows
Romeoville
Rosemont
Round Lake Beach
Saint Charles
Sauget
Schaumburg
Schiller Park
Sesser
Sherman
Skokie
South Barrington
South Holland
Springfield
Standard
Stickney
Stone Park
Streamwood
Sycamore
Thornton
Tilton
Tinley Park
Tuscola
University Park
Urbana
Valmeyer
Volo
Warrenville
Washington
Watseka
Waukegan
West Chicago
West City
West Dundee
West Frankfort
Westmont*
Wheaton
Wheeling
Williamsville
Wilmette
Winnetka
Woodridge
Uses of Home Rule
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Fee recovery
Legal and local control
Stronger Business licensure to prevent fraud and abuse
Intergovernmental agreement flexibility, including
additional opportunities for shared services limited for
non-home rule communities
Not subject to property tax caps
Impact fees on construction and development
Property acquisition and disposal
Broader powers to promote and control economic
development
Ability to eliminate obsolete organizational arrangements
Limits on Home Rule
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Article VII limits certain abilities of home rule municipalities:

Issued debt which is paid by ad valorem property tax receipts
may not have a maturity period longer than 40 years

Home rule units have a constitutional debt limit

No home rule unit may define or provide for felonies, or for Class
A misdemeanors without specific statutory authority

The General Assembly can also vote to impose additional limits
on home rule units of government
Village Board still made up of representatives of the community; still
subject to local election
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50% of Board up for re-election every other year
Example of Self imposed limits:

5/6 majority needed to raise property taxes beyond property tax
cap (proposed in Clarendon Hills)
Home Rule in Practice
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Research shows that home rule municipalities do
not have a higher property tax rate on average than
non-home rule municipalities. (Banovetz 2002;
Banovetz and Kelty 2002; Dye and McGuire
1997; Wood 2011)
Historically, voters in home rule communities
want to retain home rule. No community has
rescinded home rule since 1983.
Home Rule Research Committee
Home Rule Committee Process
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Committee was formed in May, all volunteers who stepped forward
were put on the committee.
In June, a presentation by Village Staff on Home Rule, and the Village’s
financial condition. Committee members identified information they felt
they needed to make a decision on the issue.
In July, the information requested by the committee was presented to them.
The Committee requested that guest speakers be invited to the next meeting
that had experience with and knowledge of home rule.
In August, Mayor David Brummel of Warrenville, IL, and Patrick
Lucansky of the law firm Klein, Thorpe, and Jenkins spoke. Village staff
also presented additional financial analysis information requested by the
Committee at the July 7th meeting.
In September, the committee discussed five motions prepared by Village
staff relating to the appropriateness and potential use of Home Rule in
Clarendon Hills. The Committee approved the final report document for
submittal to the Village Board.
Home Rule Committee Findings
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The attainment of Home Rule status is appropriate for the Village
of Clarendon Hills at this time: 10 yes, 2 No
Home Rule status should be utilized to affect an increase in the
Village’s property tax rate beyond the authority allowed NonHome Rule municipalities: 9 Yes, 3 No
Home Rule status should be utilized to affect increases in other
revenues, as determined by the current and future Village Board,
to offset increases in property taxes: 11 yes, 1 no
The Village Board should utilize non-financial Home Rule powers
as they deem appropriate and necessary: 9 yes, 2 no, 1 abstention
If a Home Rule referendum is attempted and fails, the Village
should pursue an increase in property taxes by referendum: 11
yes, 1 abstention
Proposed Home Rule
Revenue Options
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Maintain General Fund balance through
Sales Tax and other existing revenues

Capital Improvements Tax
Home Rule Revenue Options
Home Rule Sales Tax
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Places for Eating Tax
(PFE) could be repealed
and an overall 1% sales
tax could be put into
place
This would generate
$200,000 a year
($100,000 if PFE Tax
were repealed)
Would eliminate local
administration of the PFE
Tax
Sales Tax for Surrounding Communities as
of July 1, 2011
Willow Springs
9.50%
LaGrange
8.75%
Western Springs
8.50%
Darien
8.25%
Downers Grove
8.25%
Hinsdale
8.25%
Willowbrook
8.25%
Oak Brook
7.75%
Westmont
7.75%
Burr Ridge
7.50%
Clarendon Hills
7.25%
General Fund Balance Projections
with Home Rule and Other Existing Revenues
Beginning in FY2013, Home Rule revenues include a 1% Sales Tax and repeal of the
Places for Eating Tax. In addition, Utility Taxes and Rental/Lease Income are
reassigned to the General Fund beginning in FY2017.
Capital Improvements Tax
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Village’s current road program 50% funded by SSA, 50% funded by Capital
Fund
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SSA money is received from property owners who live in the impacted area

Property owners on non-Village roads do not pay into SSAs

Costs to set up the 2011 SSAs totaled $95,000
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If a new “Home Rule Capital Improvement Property Tax” were established,
it could replace the SSA program, be restricted to fund only capital, and
receive funds from all property owners including those who currently do not
pay into SSAs
Capital Improvements Tax
Impact on Taxpayer

$815,000 in additional revenues equals a property tax rate of
0.1517 per 100 EAV. This would provide new revenue and
replace $300,000 a year in SSA revenues.

The owner of a $500,000 home would pay an additional $253
annually; a 26% increase in the Village’s portion of the tax
bill or just 3% of their overall tax bill.

With Home Rule status, the Village could reduce this amount
as further cost-cutting measures are identified and economic
activity improves.
Property Tax Rates per 100 EAV
Current SSAs High
Proposed Capital
Improvements
Tax
Current SSAs Low
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
Village Property Tax – 500,000 Home Value
2009 Levy
* Includes separate fire protection tax, if applicable
Why not a property tax referendum?
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Property tax increase would be
13 percent higher than Home Rule option,
in order to adequately fund operations and
capital improvements
Less flexibility to respond to changing
economic conditions
Eliminates the non-financial Home Rule
benefits
Other Advantages
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Economic Development Advantage
Protection from Springfield
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Supermajority needed to impose a mandate on
a Home Rule Community
Operational Flexibility
Questions?