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SOME CITIES MAY RAISE TAXES TO MEET ADA REQUIREMENTS By ROBIN JOHNSON and NORMAN WALZER

With cost factors cited as the major reason for widespread noncompliance with the Americans With Disabilities Act (ADA), municipalities in Illinois are struggling to fund required structural changes as they deal with limited budgets, public resistance to tax increases and, in suburban areas, tax caps that limit revenue growth.

Nearly 30 percent of Illinois municipalities may have to increase taxes to comply with ADA according to a recent survey undertaken by the Illinois Municipal League, the Local Government Affairs division of the Office of the Comptroller and the Illinois Institute for Rural Affairs (IIRA) at Western Illinois University. Surveys were mailed to Illinois' 1,282 municipalities during late 1994. Statewide, 450 responses were received for a 35.1 percent response rate.

The survey collected information on compliance efforts by Illinois municipalities, associated costs and innovative management approaches. This article examines costs involved with compliance.

Associated Costs. When ADA passed in 1990, there were dire predictions that local governments would have to spend billions of dollars to comply. For example, Mayor Edward Koch of New York City claimed that it would be cheaper for the city to pay cab fares for all disabled New Yorkers rather than make the subway system accessible to the disabled,1

Now that the deadline for compliance has passed on January 26, 1995, local officials have found that even though compliance has not been cheap, it has not been prohibitively expensive either. In the Illinois survey, 44.8 percent of municipalities report that costs incurred were about what they expected and 38.3 percent report compliance costs were more expensive than anticipated.

Municipalities completed some required structural improvements through ordinary replacement of activities. For example, Peoria installs curb ramps in its sidewalk participation program and during replacement or construction of intersections, roadways, curbs or gutters. This is more cost effective and orderly than replacing all curbs at once. Still, the city will spend $200,000 to $400,000 in local tax revenues each year during the next decade to install curb ramps.

Also, program accessibility does not always mean construction and added costs. "Reasonable accommodations" in the law may simply involve a policy change or offering services and programs at different locations. In multi-level buildings, employees can bring documents to wheelchair-bound citizens instead of installing a passenger elevator.

Funding sources. Most municipalities relied almost exclusively on local sources of funding for ADA improvements because Congress provided no funds when it passed ADA. State government provided limited Community Development Assistance Program (CDAP) grant money for structural improvements which was utilized by approximately 140 municipalities, according to the Department of Commerce and Community Affairs (DCCA).

Approximately three-fourths of survey respondents report they spent municipal funds to comply with ADA. Small towns were less likely to spend funds than larger cities because most have few, if any, structures to renovate. Costs increased with size of municipality because larger cities offer a greater variety of programs and services requiring accessibility. Also, labor costs tend to be higher in larger cities. For example, the typical small town in Illinois will spend approximately $700 to replace each curb with a ramp while in larger cities, the cost is approximately $1,200 per ramp. Equipment and materials costs vary little. The difference is almost entirely because of higher wage rates in larger cities. Obviously, larger communities also have more ramps to install.

More than half (57.2 percent) of the respondents prepared cost estimates for compliance with ADA. Nearly a third of those with cost estimates, however,

February 1995 / Illinois Municipal Review / Page 25

expect to do less than the estimated amount. Municipalities will be required to come up with the financing to complete the required structural changes needed for compliance.

The options for municipalities to obtain financial resources needed to make structural improvements include:

— Raising revenues;

— Borrowing funds;

— Diverting expenditures from other areas; and

— Requesting state grant money.

Of those surveyed, 28.7 percent report they may have to raise taxes to fully comply with ADA. Currently, only 5.8 percent of municipalities have raised additional revenues for ADA. Among those, nearly 70 percent have increased property taxes. Only 4.2 percent borrowed funds to comply with the law. Larger cities are more likely to borrow than smaller towns.

More than one-third (36.1 percent) of municipalities responding said they diverted expenditures from other purposes to comply with ADA mandates. Larger cities are more likely to divert funds than smaller towns. Many municipal officials feel that the costs of unfunded mandates, such as ADA, require them to forego spending priorities like police, fire protection and infrastructure and limits their decision-making authority on spending.

Program areas most likely to be reduced are streets (47.5 percent), equipment replacement (40.7 percent) and general administration (38.3 percent). Other spending areas likely to be diverted include capital expenditures, police protection and parks and recreation.

Municipalities also funded structural improvements for ADA compliance with grant money. Survey findings show that 16.3 percent of municipalities received CDAP grant money for ADA-required structural improvements. These funds were directed to municipalities less than 50,000 in population and not located in an urban county receiving entitlement funds directly from the U.S. Department of Housing and Urban Development (HUD). Grants were awarded for renovation projects and for essential public services in municipalities that had completed the self-evaluation and transition plan. There was a ceiling of $150,000 per grant.

According to DCCA staff, approximately 75 percent of 190 applications were accepted.. In 1993, $2 million were awarded and $4 million in 1994. Grants ranged from $1,500 to the maximum of $150,000. A decision on whether to fund ADA projects from CDAP money for 1995 is pending.

Page 26 / Illinois Municipal Review / February 1995

Job accommodation costs. Most municipalities incurred minimal costs to provide "reasonable accommodation" for employees with disabilities. According to the survey, 65.9 percent of municipalities with disabled employees spent less than $500 to provide reasonable accommodation. This is similar to other studies of job accommodation costs.2 The average cost of reasonable accommodation used by the federal government when hiring a disabled person is less than $100. According to the Job Accommodation Network, a federally sponsored organization that works with disabled people, 50 percent of accommodations in small businesses cost less than $50.3 Experts in rehabilitation estimate that 80 percent of workplace modifications cost less than $500.4

Tough decisions ahead. Most municipalities are making progress in complying with ADA requirements. However, many were not in compliance by the January 26 deadline due to financial considerations. As cities move toward completing all the required projects, they will encounter difficult decisions on how to pay for the remaining costs. Regardless of the availability of additional CDAP money, local leaders must choose between diverting expenditures from other areas or raising additional revenues.

"Crucial funding decisions lie ahead for municipalities completing their structural modifications," said Ken Alderson, executive director of the Illinois Municipal League. "The next several years will be particularly challenging for many municipal officials."

March 1995 Municipal Calendar

This calendar is based upon the most current information, court decisions and legislation of which the League has knowledge as of the date of this publication. It supercedes similar information contained in all other League publications.

By March 31st of each year, the corporate authorities shall cause the zoning map to be published. If there are no changes from the preceding year, no map shall be published. (65 ILCS 5/11-13-19).

Where the Act has been adopted, members of the Board of Fire and Police Commissioners are to be appointed by the mayor or village president with the consent of the council or board. However, no such appointment shall be made by the mayor or president within 30 days before his term of office expires. 65 ILCS 5/10-2.1-1, 10-2.1-2).

MUNICIPAL Exchange SERVICE

Provided as a public service to member municipalities . . .

FLEET SERVICES SUPERINTENDENT

The Village of Glendale Heights has an immediate opening for Fleet Serv. Supt. Under direction of Public Serv. Dir. to manage & establish the priority for Fleet Div. operations & staff assignments. Must demonstrate effective leadership & goal oriented motivational skills to effectively achieve mission in a teamwork & quality assurance format. Ability to communicate verbally & thru written policy & programs to expedite work flow, create standard procedures, support decision making, maintain employee evaluations & establish division reports is essential. Regularly prepares reports that analyze & project the resource needs of the Div., takes personal response ability for purchasing, maintaining & replacing the entire Village Fleet. Specialized training in: mechanical diagnostic, repair & maintenance functions; a proven history of safety awareness & practices; computerized maintenance management systems, determination & energy to manage all facets of the Fleet Serv. Div. Grad from high school with diploma or GED equiv., plus extensive specialized training in mechanics, maintenance management or a closely related field. Seven years of increasingly responsible experience relating to the repair & maintenance of automobiles, trucks and heavy construction equip, or any equiv. combination of education & experience. Salary Range: $38,480-$45,298. Salary will be determined based on qualifications & experience factors.

Applications accepted thru March 1, 1995 to Village of Glendale Heights, 300 Civic Center Plaza, Glendale Hts., IL 60139, Attn: Human Resources Dept. An EOE.

CITY MANAGER

City Manager for newly created position in East Dubuque, IL, a city of 2,000 adjacent to a city of 65,000. Good growth potential, budget of $1,337,000,11 full time employees. Salary range in mid 30s plus benefits. Master's degree preferred in public administration/finance. Require 3-5 years manager/assistant manager experience.

Resume to Darly Barklow, Chairman, Search Committee, P.O. Box 259, East Dubuque, IL 61025-0259. Prefer applicants from the Midwest. Closing date is March 1, 1995.

February 1995 / Illinois Municipal Review / Page 27