Excerpts from nwherald.com:
The firefighters' union in Crystal Lake is taking legal action against the city after it blocked a proposed use of a tax fund that was meant to cover items like Fitbits, coffee beans, and other personal expenses for firefighters. This lawsuit has the potential to heighten tensions between the union and city officials, especially after nine firefighters, including two who were arrested, faced disciplinary action following 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 the city violated state laws by eliminating the foreign fire insurance tax, which brings in over $60,000 annually. The suit also alleges that the city council improperly dissolved the tax board and withheld funds that had been collected from out-of-state insurance companies, intending to return them to the companies.
However, the city council never actually took those actions. Instead, they passed a modified version of the original ordinance. An earlier draft had called for dissolving the tax board, but the council never even voted on that proposal.
Mayor Aaron Shepley claimed that the tax board provided the city council with a draft of the lawsuit before a meeting on August 1, suggesting it was an attempt to intimidate council members. He also pointed out that the board did not update its legal documents to reflect what the council had actually done — which was simply setting the tax rate to zero and agreeing to use the remaining $150,000 in the fund until it ran out, as stated in city records.
The conflict began when the tax board requested approval to use foreign fire tax money for personal benefits for firefighters, such as Fitbits, gym memberships, duffel bags, and child care while they used the gym. Some of these expenses, like coffee, were already covered by the city.
According to city code, the foreign fire tax is intended to support the Crystal Lake Fire Rescue Department, including equipment, training, and certification fees. Fire Rescue Chief Paul DeRaedt, who serves as a trustee on the tax board, expressed concerns that the recent spending requests were more about individual benefits rather than department-wide needs.
“Items like Fitbits, gym memberships, and coffee beans are more personal than professional,†DeRaedt said. “It feels like we're spending extra on things we already provide.â€
Historically, the tax funds have been used for important purchases like exercise equipment, a new alert system for all three fire stations, and additional firefighting gear. However, recent decisions have sparked controversy.
In 2015, the board approved $44,000 annually for gym memberships, and in 2016, it allocated $14,000 for Fitbits and $2,600 for monthly coffee supplies. The city already spends about $1,270 a year on coffee for all departments. PI Coffee Roasters, the company supplying the coffee, is run by firefighters and donates part of its profits to charity.
The latest controversial expense was nearly $57,000 for legal services, which would consume most of the annual $61,000 collected 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 is expected to collect about $61,000 again this fall before being suspended indefinitely unless the city and board can agree on how to use the funds. Mayor Shepley criticized the current board for shifting its focus away from the department's needs, saying it has taken a “complete U-turn†from past practices.
DeRaedt noted that changes in board leadership have led to disagreements with city officials over what qualifies as a legitimate department expense. In July, the board voted to hire legal counsel to update its bylaws and seek reimbursement for funds it believes were unlawfully withheld.
Shepley also criticized the union for getting involved in matters unrelated to their collective bargaining agreement, which expires on April 30. Negotiations are expected to begin in the spring.
As for future discussions about the foreign fire insurance tax, DeRaedt said he is not aware of any scheduled meetings between the board and city officials, but he remains hopeful for a resolution.
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