What is the purpose of Township Government?

Set by law, Illinois townships are charged with basic functions. In accordance with Illinois law the City of Champaign Township provides: General Assistance for the indigent; the assessment of real property for the basis of local taxation, and is a responsive, respectful, cost effective service in partnership with our community.

Township Government is the oldest form of government in our country. It has specific statutory responsibilities of property tax assessment and general assistance for those in need; unlike municipalities, the Township relies almost entirely on property taxes as a source of revenue. Townships do not receive sales tax or other fees and fines, allowed by county and municipal governments.

Property Assessment

The City of Champaign Township Assessor establishes the value of all real property in the Township. The Township Assessor is the only elected governmental official who must pass approved courses of instruction before standing for election to office.

The General Assistance division of the City of Champaign Township provides food, shelter and relief for eligible needy people who reside in the township. Township assistance helps meet the most basic maintenance needs for the general health and well being of our poorest, most vulnerable citizens.

Why does the City of Champaign have Township Government?

The township form of government was formed in 1860 to bring government closer to the people they served, and is divided into districts with 36-square–mile boundaries. The City of Champaign Township was formed in 1916 encompassing the City of Champaign, whereby it became a coterminous Township.

There are over 1400 townships in the State of Illinois and the City of Champaign Township is one of only 20 coterminous townships. Coterminous townships differ in responsibilities in that they don’t have responsibility for Road Districts, as this function is handled by the City.

Township Government is mandated by law to provide Property Assessment and General Assistance services. According to the U.S. Census 2000, there are 13,398 (22.1%) individuals in the City of Champaign whose income is below the poverty levels. The City of Champaign Township serves roughly 4% of these 2,400 non-student individuals living in poverty. The demographic data clearly shows that poverty crosses all ages, genders and ethnicity in Champaign County. General Assistance is a mandate by the state to preserve the health and well-being of eligible residents who are poor and ineligible for other sources of support.

Who are the residents seeking Township assistance?

• About 30% to 40 % of the township caseload consists of individuals unable to work due to mental and/or physical disabilities.
• Some Township general assistance clients are under-employed - thus they are the working poor. Their income from employment is so little they are still eligible for some township relief.
• Township clients are the poorest of the poor in our community. Most of them are homeless and/or near homeless, have no access to health care, have little or no job skills, and often do not have a high school education.
• Many of those with education are facing some mental or physical challenges and have no source of income and/or are too sick to be gainfully employed.

What is the Township’s obligation to serve the poor?

Under the Illinois Public Aid Code, any individual who satisfies the eligibility requirements (essentially financial need and residency) is entitled to receive aid through the Township General Assistance fund.

Specifically, the code states that “the Supervisor of General Assistance shall receive and pay out monies raised by taxes or allocated by the State for public aid purposes and shall provide public aid to all persons eligible” (emphasis added). See also 305 ILCS 5/6-1 (stating that “financial aid in meeting basic maintenance requirements shall be given under this Article to or in behalf of persons who meet the eligibility conditions” (emphasis added) Significantly, the Township Supervisor’s obligation to provide assistance to qualified persons does not depend on the availability of General Assistance funds.

What is the cost of the proposed tax increase City of Champaign Township residents?

A 0.0870 (8.7 cents) rate in the Township generates an annual levy of $998,346

• Total tax increase for the owner of a $ 80,000 home-$10.88 per year
  ($0.91cents/month, $ 0.21 cents/week)
• Total tax increase for the owner of a $100,000 home- $14.22 per year
  ($1.19/month, $0.27cents/week)
• Total tax increase for the owner of a $150,000 home- $22.59 per year
  ($1.88/month, $0.43cents/week)
• Total tax increase for the owner of a $350,000 home- $56.06 per year
  ($4.67/month, $1.08/week)

Source – Richard Schnuer, Director of Finance, City of Champaign

How does City of Champaign Township compare to other Townships?

The tax rate for the City of Champaign Township is much lower than average, and would still be lower than average if increased to the 0.0870 rate.

A survey of other Illinois townships was provided to the Town Board with a comprehensive set of data to look beyond our borders to our neighboring townships and other coterminous townships to determine how the City of Champaign Township compares. This analysis revealed that the City of Champaign Township’s tax rate is substantially lower than average for comparable Townships. In addition to tax rate questions, the survey also reviewed the number of people receiving General Assistance on a per capita basis and number of staff per case–and again, the number of people receiving General Assistance in the City of Champaign Township is lower than average.

How will the funds be used?

There are two divisions to the City of Champaign Township - Property Assessment which is the responsibility of the City of Champaign Township Assessors office and General Assistance which is the responsibility of the City of Champaign Township Supervisor. Tax monies are used to operate both offices as well as meet the legal obligation of the Township Supervisor to provide assistance to qualified persons.

The City of Champaign Township is a unit of local government and must meet certain statutory requirements. These are enforceable by law and involve every function of Township duties and responsibilities. While the Township is small, with nine full-time staff members (five in the Assessor’s office and four in the Supervisor’s office), its services are accessible, responsive and cost effective.

Why does the Township need to increase the tax rate?

In order to prevent the City of Champaign Township from a possible lawsuit for illegal accumulation of funds, the General Assistance levy for 1999 was reduced to $10,042, thereby forcing the use of cash reserves. The levy was kept artificially low as the fund reserves were spent down as required by law. In the meantime, tax caps were enacted. Tax caps require a voter referendum in order to levy the taxes needed to adequately fund the Township.

Prior to 1996 the Township enjoyed healthy fund balances. Historical data for the City of Champaign Township shows the tax rates for the ten years prior to 1995 (1983 – 1984) a rate much similar to the rate if passed of 0.087%. Additionally, Historical data from 1995 – 2005 shows how tax caps and the required fund balance limits brought down the tax rates beginning in 1996 through 2001.

This process not only impacted General Assistance, but eventually affected the Town Fund as well. As a result, the City of Champaign Township was basically caught between tax caps and fund balance requirements. Over a period of five years from 1997 to 2001, the Township’s total levy for the General Assistance Fund was $41,854, with an average of only $8,370 per year. During this period the Township was forced by the “blunt instrument” of tax caps into a lose/lose situation. In 2001 this process actually lowered the tax rate over 39%. While the Property Tax Extension Limitation Law appears to be successful in preventing growth of taxing bodies, it limits the township’s ability to expand fund balances when needed without a referendum.

Are there other tax options besides a property tax increase?

Townships can qualify for state money to “supplement local funds for public aid purposes” under certain circumstances. In order to receive state aid, the Township Board must “levy . . . a tax of an amount which, when added to the unobligated balance available for [public aid] at the close of the fiscal year preceding the fiscal year for which the tax is levied[,] will equal 0.10% of the last known total equalized value of all taxable property” in the Township for just the General Assistance levy.

It is important to note that the Township’s requested levy amount of 0.087 that will appear on the November 7 ballot funds both the Assessor’s office and the General Assistance office and is lower than the levy amount required by the state(.10%) to apply for state aid for General Assistance alone.

Additionally, there are many ongoing procedures needed in order to receive funding from DHS on a monthly basis. If the Township does not meet the monthly threshold as calculated by DHS funds to the Township are withheld. There are no guarantees that a monthly state allotment will be awarded. Additionally, the Township would be required to spend the amount of money specified by the state, thus taking funds needed for Town Fund Expenditures.

When was the last time the Township had an increase in tax levy?

A review of Township records indicates that this appears to be the first referendum for the City of Champaign Township, and the amount requested doesn’t even represent the Township’s maximum rate allowable by the state statute. Essentially, the requested tax increase lifts the tax cap limit for the next year allowing for a one year release and then the tax caps are back in effect for the following tax year after the referendum.

The statutes have maximum tax rates for the different funds- e.g. 1.00 for general assistance. Prior to tax caps, there would only be a referendum if the Township wanted to levy for a fund that the statute said needed specific approval ( e.g. a building fund for a township building or more commonly in the rural townships what was called a ” hard road” tax.) Or if the Township wanted to exceed the maximum statutory rate, then there might have to be a referendum. This Township has never needed to exceed the statutory maximum rates, so no referendum was ever necessary. Unlike school districts which were often at their max rates needed referendumS frequently to get extra monies.

The above process changed completely with tax caps- because the max rate the Township can capture each year is no longer the highest rate allowed by statute but rather the rate the Township budgeted in their last year + 5% or the Consumer Price Index(CPI), which ever is lowest. As a result almost any change in circumstances may require a referendum. And also because the tax cap law effect is to actually reduce the rate you can levy so you’re even further from the max rate.

Why has there been an increase in the number of Township clients?

Despite the state mandate to serve all eligible residents who were in need, it was common knowledge that the City of Champaign had not been responsive to the needs of the poor over many decades. Many artificial barriers were set up to prevent the town’s poorest, most vulnerable citizens from accessing necessary Township services.

In May of 2005 after a change in the administration, the Township was approached by social service agencies, who expressed concerns about the past policies and rules that governed the township. When it was apparent that the Township intended to adhere to the legal mandate to serve the poor, social service agencies began to advocate for the poor by assisting their clients through the township process of eligibility. City of Champaign Township not only responded to the need but began to address policies that prevented our poorest citizens from accessing mandated services. Township services are the last resort safety net services to many citizens in crisis to prevent homelessness and other catastrophic circumstances to vulnerable citizens.
For More Information
Contact:
Linda Abernathy at lindacofcsuper@aol.com.
or educate yourself on additional facts by visiting www.cctownship.com.