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DEC 28 1979

VILLAGE OF BENSENVILLE, ILLINOIS

P.O. BOX 330 700 W. IRVING PARK RD. TELEPHONE 766-8200 ZIP CODE 60106

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Many thanks for the letter of December 10 relative to your views on the revenue sharing program.

I, too, agree that to allow this program to expire would constitute a severe financial hardship for our communities, and the program does put the decision making power in the hand of the local government, who have a direct knowledge of the current and long term needs of the specific area.

The recent experience we had in DuPage County and the lack of concern about it point up the need for this type of program.

As mentioned in our earlier communication, there is much work to be done in the Village of Bensenville as regards fire protection and in assisting our residents in meeting their transportation needs, and these funds are essential to sustain that process.

Please continue your supoort of the revenue sharing program, for there is a definite need.

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In response to your letter, being local officials are very
concerned of the expiring of revenue sharing. The expiration
of revenue sharing will definitely become the burden of the
Village of River Grove. The Village, at the present time,
does not incorporate revenue sharing in the fiscal budget.
Allocations received are used for recreation programs, senior
citizens, purchase of vehicle for public works, purchase of
Police and Fire vehicles.

Our revenue sharing allocation enables us to give to the citizens
of River Grove the benefits to provide for the welfare and safety
of our community.

The Mayor and Board of Trustees sincerely thank you as our
representative for the effort and support you have shown to
reinstate revenue sharing. We urge that your Committee and Congress
adopt legislation to extend the program for four additional years
which is so vital to the areas that we serve.

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This letter responds to your letter of December 11, 1979 concerning the continuation of the present revenue sharing program.

It is our judgment that the federal revenue sharing program
should be continued beyond September, 1980; that any phaseout
of the program should be done gradually over a period of
years to permit communities to adjust to the phasedown; and
that any decrease in revenue sharing funds as presently
distributed should not be retargeted to federally controlled
spending programs in urban areas--or elsewhere--but might
better be applied to balancing the federal budget.

Those in the Administration and Congress who continue to
insist that suburban areas are "affluent" might do well to
take a good look at the financial "crunch" we have experienced
in the last few years. Inflation has kept our expenditures
spiralling upward far in excess of municipal revenue increases.
This squeeze has probably been much more pronounced in the
suburban communities than in the urban areas. Further, revenue
sharing allocation to so-called "affluent" suburbs have a
damper put on them by the formula used to compute the
allocations.

More specifically, we have used our revenue sharing allocations in different ways from year to year as the corporate authorities have decided it is best to apply the funds--for equipment replacement, building maintenance, or priority programs-wherever the need is greatest at the time. What is important

is that without the revenue sharing funds we would either have to increase other taxes or do without a new fire

truck or garbage truck, and that we make the decisions in the course of our overal deliberations in the appropriation and budget cycles.

With best regards.

Sincerely,

Buur & lilaustur

Bruce D. Clausonthue
Village President

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I have received your December 11, 1979 letter concerning Federal
revenue sharing funds and requesting comments on the program.

It was our understanding that the revenue sharing program was
to be a continuing program to support needs at the local level
without undue Federal restrictions. It should be kept that way.

Our residents and taxpayers realize that what River Forest receives
in revenue sharing funds is less than a pro-rata share of the
Federal taxes paid from River Forest into the revenue sharing pot,
but they look on the funds as at least a partial return.
them out completely by retargeting the program would be
un acceptable.

To cut

River Forest has used revenue sharing funds as it has used funds
from any other general fund source--where the need is greatest
at the particular time. To remove this source would have the
same adverse effect as chopping off another source of revenue,
with the resulting reduction in personnel, services or equipment.
We support your efforts to retain and maintain the revenue
sharing program in its present form.

Best regards.

Sincerely,

en

Emerson K. Houser
Village Clerk

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