By: Diane Benjamin
The Town of Normal has done the same thing with Enterprise Funds that Bloomington did. Segregate funds, like water, and then insist the fund pays for itself. These essential services were formally funded by taxes you already paid. You continue to pay all the old taxes, but new taxes are levied for the Enterprise funds. Those rates are continually raised to balance the fund.
Here’s the problem. They can tell you the fund doesn’t balance with no proof. They can throw as many expenses in the fund as they want, in Bloomington’s case the Enterprise funds are charged Administrative fees that are constantly increasing (hundreds of thousands of dollars). I haven’t had time to check if Normal does the same thing.
Last night Normal raised water rates again and they are planning to do another rate study in a year or two which will of course say the rates are too low.
Before the Town took that action however, they transferred the cost of two employees to the Water Enterprise Fund. Those two employees inflated expenses for the fund. Because THEY increased costs in the fund, you must pay more.
In theory, Enterprise funds can be a tool for looking at costs verses revenue. In practice both Towns are forcing you to pay more while claiming revenue doesn’t cover the expenses they chose to put in the fund. Since no transparency exists, they can transfer General Fund expenses to a fund they created and force you to pay more.
Thanks to Trustee Kathleen Lorenz for bringing it up, Just hit play: