Excerpts from nwherald.com:
A local firefighters' union has taken the city of Crystal Lake to court over its decision to eliminate a tax fund that firefighters had previously used to purchase items like Fitbits, coffee beans, and other personal supplies. The legal action could further strain relations between the union and city officials, especially after nine firefighters, including two who were arrested, faced disciplinary actions following an off-duty incident at a local bar in March.
The lawsuit was filed on August 2 by the Crystal Lake Foreign Fire Insurance Tax Board and the city’s firefighter labor union against the city and several officials. They claim that the city violated state laws by removing the foreign fire insurance tax, which generates over $60,000 annually. The suit also alleged that the city council improperly dissolved the tax board, withheld collected fees, and returned the money to the insurance companies.
However, the city council never actually carried out those actions. Instead, they passed a modified version of the original ordinance. An earlier draft had proposed dissolving the board, but it was never officially considered or voted on by the council.
Mayor Aaron Shepley claimed that the tax board provided the city council with a draft of the lawsuit before an August 1 meeting "in an attempt to intimidate" them. He argued that the board failed to update the lawsuit to reflect the actual actions taken by the council, which included setting the tax rate to zero and agreeing to use the remaining $150,000 in the fund until it runs out, according to city records.
The dispute originated from the tax board requesting permission to use foreign fire tax funds for personal benefits to firefighters, such as Fitbits, gym memberships, duffel bags, and childcare while they used the gym. Funds were even requested for coffee beans, despite the city already providing coffee to all departments.
The foreign fire tax is intended to support the Crystal Lake Fire Rescue Department, covering equipment, training, and certification costs, as outlined in city code. Fire Rescue Chief Paul DeRaedt, who serves as a trustee on the tax board, raised concerns about the board's recent spending decisions, arguing that the funds should benefit the entire department rather than individual firefighters.
"Spending on things like Fitbits, gym memberships, and coffee beans felt more like personal expenses," DeRaedt said. "It's almost like we're paying extra for things we already provide."
In past years, the tax funds have been used for exercise equipment, a new alert system for fire stations, re-outfitting a reserve fire engine, and purchasing essential gear like hydraulic tools, carbon monoxide monitors, and backup firefighting suits.
In 2015, the board approved $44,000 annually for gym membership reimbursements, though it's unclear if this included on-site childcare. In 2016, the board spent $14,000 on 70 Fitbit devices and $2,600 a year on coffee beans from PI Coffee Roasters, a company owned by firefighters that donates part of its profits to charity.
More recently, the board allocated around $57,000 for legal services, which would consume nearly the full $61,000 collected each year. 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 approximately $61,000 one last time this fall before being suspended unless an agreement is reached on how to spend the money. Mayor Shepley criticized the current board for reversing decades of previous practices, stating that taxpayers shouldn’t bear these additional costs.
Fire Rescue Chief DeRaedt noted that changes in board leadership have led to disagreements over what qualifies as a beneficial expense for the department. The tax board recently hired legal counsel to revise its bylaws and pursue unpaid funds from the city, according to court documents.
Mayor Shepley also criticized the union’s involvement in discussions unrelated to their collective bargaining agreement, which expires on April 30. Negotiations are expected to begin in the spring. As for future talks between the board and city officials, DeRaedt said no meetings have been scheduled yet, but he remains hopeful for a resolution.
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