Excerpts from nwherald.com:
The firefighters’ union is taking the city to court over its decision to eliminate a tax fund that firefighters had hoped to use for items like Fitbits, coffee beans, and other personal purchases. This legal action has the potential to increase tensions between the union and city officials, especially after nine Crystal Lake firefighters, including two who were arrested, faced disciplinary action in connection with an off-duty incident at a local bar in March.
The lawsuit, filed on August 2 by the Crystal Lake Foreign Fire Insurance Tax Board and the city’s firefighter labor union, claims that city officials violated state laws by canceling the foreign fire insurance tax imposed on out-of-state insurance companies. The tax brings in over $60,000 annually. The lawsuit also alleges that the city council broke the law by dissolving the tax board, withholding fees collected from insurance companies, and returning the money to those companies.
However, the city council never actually did any of these things. Instead, they passed a modified version of the original ordinance. An earlier draft had proposed dissolving the board, but it was never voted on or even considered by the council.
Mayor Aaron Shepley claimed that the tax board provided the lawsuit to council members before an August 1 meeting “in an effort to intimidate†them. He argued that the board failed to update the lawsuit to reflect what the council actually did — which was to set the tax rate to zero and agree to use the remaining $150,000 in the fund until it ran out, as outlined in city documents.
The dispute began when the tax board requested approval to use foreign fire tax funds for personal expenses for firefighters, such as Fitbits, gym memberships, duffel bags, and childcare services while they used the gym. Funds were also sought for coffee beans, despite the city already providing coffee to all departments.
According to city code, the foreign fire tax is meant to support the Crystal Lake Fire Rescue Department by purchasing and maintaining equipment, covering training costs, and funding certifications approved by the fire chief. However, Fire Rescue Chief Paul DeRaedt, who serves as a trustee on the tax board, raised concerns about the board's recent spending proposals, arguing that the money should benefit the entire department, not individual firefighters.
“Things like Fitbits, gym memberships, and coffee beans are more personal than professional,†DeRaedt said. “It feels like we’re spending extra money on things we already provide.â€
In previous years, the tax funds have been used for exercise equipment, a new alert system for all three fire stations, a reserve fire engine, hydraulic tools, carbon monoxide detectors, and backup firefighting gear.
In 2015, the board approved $44,000 annually for gym membership reimbursements. In 2016, it allocated $14,000 for 70 Fitbit devices and $2,600 per year for 36 pounds of coffee beans monthly from PI Coffee Roasters, a company owned by firefighters that donates a portion of sales to charity. The city already spends around $1,270 annually on coffee and filters for all city departments.
The most recent major expense was approximately $57,000 for legal services, which would consume nearly the full $61,000 collected each year from the tax. Since 2003, the Illinois Municipal League has turned over over $780,000 in foreign fire tax fees to the city, according to the union’s lawsuit.
The tax will collect another $61,000 this fall before being suspended indefinitely unless the city and the board can reach an agreement on how to spend the funds.
Shepley criticized the current tax board, saying it has completely changed its approach compared to its predecessors over the past 20 years. “As long as they continue to believe they have the right to do this, it’s better for taxpayers not to bear these costs,†he said.
DeRaedt noted that changes in board leadership — which elects six trustees every December in even-numbered years — have led to disagreements with city officials over what qualifies as beneficial to the department.
The tax board recently voted to hire legal counsel to update its bylaws and pursue any money unlawfully withheld from it. A January meeting featured heated exchanges between union members and city officials.
Shepley also said the firefighters’ union has no right to be involved in discussions unrelated to their collective bargaining agreement. The union’s contract with the city is set to expire on April 30, and negotiations are expected to begin in the spring.
Regarding future talks on the foreign fire insurance tax, DeRaedt said he’s unaware of any scheduled meetings between the board and city officials, but he remains hopeful for a resolution.
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