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W ' 't • Pltindeilcr newt Mrvice photo numerous volunteers. Surphis government cheese ana other commodities also are distributed free to the needy. McHenrym «since 187 5 amdealer 2 Sections 42 Pages 25* <#• Wednesday June 13, 1984 Number 89 Volume 108 Bond bill draws concern in Illinois Three contestants featured By Anthony Oliver Plaindealer staff writer HB 4170 is a term that has had people concerned with the economic development and viability of Illinois and its communities up in arms. Entitled the Tax Exempt Bond limitation Act of 1983, HB 4170 imposes a ceiling on the amount of tax exempt bonds that may be issued by a government or state agency. The measure was sponsored by Rep. Daniel Rostenkowksi, D-Ill., and won approval in the U.S. House of Representatives last month. More recently, Gov. James Thompson issued an executive order that will allow state agencies to issue up to $380 million in tax exempt bonds. The order makes it possible for businesses to get the bonds, while still complying with the pending bill. Essentially, the Rostenkowski bill limits the amount of bonds a municipality may issue to the population multiplied by $150. Under the Mil, Illinois would have a total bonding level of $1,714 billion eligible tor tax- exempt status. Of this amount, home rule municipalities would receive about $953 million, wMle non-home rule communities (McHeury) and state agencies would split the remainder, which equals about $380 million each. James Baldwin, regional marketing manager for the Department of Commerce and Community Affairs (DCCA), said the executive order would probably have little effect in­ dividual cities, like McHenry, Woodstock or Crystal Lake. The bonding power of those municipalities would be governed by population. But, if a city could not meet the bonding needs of a business located there, the company could approach one of the state agencies with bonding authority. Those agencies in­ clude DCCA, Illinois Farm Development Authority, Illinois Development Finance Authority (IDFA), Illinois Housing Development Authority, Illinois Independent Higher Education Authority, Illinois State Scholarship Commission, Illinois Health Facilities Authority and the Illinois Education Facilities Authority. "If a community did not want to issue bonds for all, or part, of a project because of the cap, they could go to other state agencies and try to top off," Baldwin said. "Before IDFA can issue tax-exempt, bonds, we have to get a sign-off from the municipality." For example, if a company sought bonds for an $8 million expansion project and a municipality's bonding limit was $5 million, either $3 million would be taxed, or, funds would have to come from a state agency, Baldwin said. The bond ceiling has many local legislators upset, par­ ticularly at the council level, because they will be forced to rate the tax-exempt bond requests and give one business priority over another. "I've seen reams of literature from economic development commissions and lobby groups," Baldwin said. "Nobody involved with economic development is in favor of this bill." The Rostenkowski bill was spurred by abuses of the program and the government's loss of millions of dollars in tax revenue. "What happened was that people were issuing these bonds for a tavern down the street or for a fast-food restaurant, and that's not the purpose of the program,". Baldwin said. According to the 1980 Census figures, McHenry's population of 11,949 would give the city a bonding power of about $1.79 million. In Crystal Lake, the population of 18,590 would permit about $2.78 million, and Woodstock, a population of 11,725 would yield bonding authority of approximately $1.75 million. The county population of 147,897 would give an authority in excess of $22 million. Council okays IRB's with a new twist By Anthony Oliver Plaindealer staff writer A local business seeking $1.2 million in industrial revenue bonds (IRBs) found favor with the McHenry City Council Monday night, but, with a slightly different twist. While the council approved unanimously a resolution which allowed the city to enter into a memorantam w igfWiMii with McHenry Opticians, it did so with a new disclaimer. The new clause in the memorandum of agreement, which is one of the first steps in the issuance of bonds, states that both parties are aware of the possible effects of HB 4170, the infamous Rostenkowski bill. The bill, sponsored by U.S. Rep. Daniel Rostenkowski, D- HI., seeks to limit the amount of tax-exempt bonds (like IRBs) that a governmental unit or may issue, based upon ion. HB 4170 was ftp- in the Hflutft last nw# and |s awaiting Senate action. "What if the status of the Rostenkowski bill?" asked Aid. Frank McClatchey (3rd). "Muddled," replied Bernard Narusis, city attorney. Narusis commented that even though the bill had the backing of the Democratically-controlled House and the Administration, its passage was not assured, due primarily to the groundswell of opposition from local govern­ ments, regardless of party. In the rough draft of the memorandum, the City does not commit to any bonding authority it does not possess, Thousands in county live at poverty level McHenry County is an affluent county, ant of the wealthier a>unties in the state. But there is also poverty, here and In neighboring counties. Starting In today's Plaindealer, the extent of poverty In McHenry and Kane counties, and what is being done to help the needy, will be atamined in a special series written by several Shaw Free Including Plaindealer's Anthony Oliver. This first Installment is an overview the extent of poverty in our area and the problems the poor face. By Angela Burden Plaindealer News Service Some people find it hard to believe that poverty exists in the northwest suburbs, even in affluent areas such as Kane and McHenry counties. "The number of people in McHenry County living below the poverty level has grown in the past few years," said Naney Briscoe, execu£pr director of the MeHgnryjCounty Housing Authority She said statistics from the 1980 census revealed there were /-about 8,000 people in JicHenry County below the federal poverty level Briscoe said it appears more people need assistance now because those who were laid off and have not been rehired or are unable to find another, job have used up unemployment benefits. According to the Elgin Housing Authority director, mote than 500 households in Elgin receive rent assistance and there are three and four-year waiting lists for low-rental units. The federal level of poverty and the level for eligibility for public aid assistance differ con­ siderably, according to B J. Jones,, casework supervisor at the Illinois Public Aid office for McHenry County in Woodstock. "A person qualifying for public aid here has about half the income which the federal authorities consider the poverty level," Jones said. She implied that however low an income level a person has, they don't stand m|M* of a chance of receiving public aid assistance unless they have dependent children, are elderly or blind, or are totally or permanently disabled. Kane and McHenry County public aid recipients fall into the same assistance category. The state is divided into three areas, the southern counties, the central division and the northern counties, for levels of assistance. The northern area has a higher allowance of aid than the south and central areas. In McHenry and Kane counties, for instance, a person with no income who has one dependant child is allowed $250 a month plus a food stamp allowance. "That is not a great amount for this area, where rents are much higher than other parts of the state," Jones said. A mother with two dependant children is allowed $302 per month. "The older the children are, the worse it becomes for them to stretch the money out. What we give them hardly will cover rent and utilities and the older the children become, the more they eat," Jones said. , According to the casework supervisor, a single parent in Kane or McHenry County with five dependent children would qualify for the public aid poverty level with an income of $495 per month. The federal qualifying poverty level for a family of five is a monthly income of $996. Jones said about one and one-half percent of M c H e n r y C o u n t y ' s population are served by public aid, compared to Cook County's 15 percent. This year the Woodstock in Miss McHenry pageant Among the 15 candidates vying for the title of Miss McHenry 1984 are Laura Carlson, Michelle M. Hough and Rochelle Mezzano. Laura Carlson is a 17-year-old student at Johnsburg High School. While in school, she was active in marching-concert band, National Honor Society, Drama Club and she was a Rotary Exchange student in 1983. Her hobbies include playing the flute, aerobics, sewing and crafts, cooking, jogging, swimming, waterskiing and horseback riding. Michelle M. Hough, is an 18- yearold graduate of McHenry High School West Campus, where she was active in the Ski Club. Michelle's hobbies include horseback riding and skiing. Rochelle Mezzano is a 17-year- old student at McHenry High School East Campus. In school, Rochelle was involved in Drama Club, Key Club aqd student council. Rochelle enjoys collecting stationary and elephants, and making silk flowers. ICHELLE HOUGH Narusis said. If HB 4170 is signed into law, then the city and McHenry Opticians simply part company. The petitioner's attorney said McHenry Opticians' owner has a contract to purchase a tract at the corner of Kane and Front Street. The intention is to build a 16,000 square foot building (approximate) to house a number of small stores. The largest of these, 3,000 square feet, would be occupied by McHenry Opticians. LAURA CARLSON ROCHELLE MEZZANO Felony charges brought for battery, restraint Plaindealer news service Two McHenry area men face felony and misdemeanor charges following an incident that occurred in the City of McHenry. Police said two men, David J. Mikeska, 19, 5204 Shore Drive, and Christopher N. Willis, 21, of Route 31, Richmond, have each been charged with intimidation, unlawful restraint, aggravated battery and battery. According to the complaint, Mikeska and Willis allegedly accused the victim of stealing a car stereo. In attempting to elicit information, the two reportedly kept the victim captive in a car with a wire around his neck, cut his right arm and burned his chest with a cigarette lighter. Mikeska and Willis were in custody in McHenry county jail Monday morning. In other incidents: -McHenry Police arrested Patrick S. Marshall, 25, 2711 Apache, McHenry, for disor­ derly conduct, aggravated battery, resisting arrest and battery following a fight in the 1400 block of N. Riverside Drive. -Michael W. Bockhorst, 21, 715 Center St., McHenry, was charged with criminal damage to property under $300 and aggravated assault after he reportedly hit a car with a lug wrench and threatened another person during a dispute near 4502 W. Elm St., McHenry. City gets state grant for new water tower The McHenry City Council received word Tuesday morning that it will be the recipient of a $400,000 state grant to finance the construction of a new water tower. The financing comes through the state's competitive 1984 Community Development Assistance Program, which was designed for state government programs that lead directly to job creation. It is the third grant of its kind the city has received in less than one year. The new 500,000 gallon water tower will be built in Tonyan Industrial Park, which currently is not serviced by city water. At least two companies will benefit directly from the availability of water for safety purposes. One of those com­ panies is Chroma Corporation, which was destroyed by fire in January and is now in rebuilding stages. Further details on the grant assignment will be given in Friday's Plaindealer. A look inside. . . Algonquin Drowning Page 6 Fishing Derby Page 19 Regular features So I Hear Page 4 Obituaries Page 6 Coupon Clipper Section 2, Page 16