Category Archives: Legal Issues

Freeport City Council Meeting Tonight November 18, Vote on Rental Ordinance Scheduled – And Mr. Gitz – Read My Lips!

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If you tried to watch the Freeport City Council meeting on November 4, you discovered that there was no sound. It is sad that the Gitz adminstration and this council cannot even insure that the sound system is working twice a month for council meetings. Remember this is not the first time. Can the Gitz administration and this council be trusted with anything? And don’t foreget the City receives $375,000 in Cable taxes each year paid by the citizens of Freeport. Let’s not offend Comcast. You decide who is to blame. Don’t they test the system prior to each meeting. The answer is obvious.

The Freeport City Council meeting is at 6:00 pm in the City Council Chambers at 524 West Stephenson Street, 3rd Floor. If you have Comcast Cable, go to channel 17 to watch live (hopefuly with sound).

For a complete agenda go to

Click to access A20131118.pdf

Some items of interest on the agenda:

2nd reading of Ordinance on Residential Rental Property Regulation – Returned from Committee of Whole on Nov 12 with no changes. Scheduled to be voted upon. Read comments on proposed ordinance in Good Day Illinois on November 4.

Resolution that levy for next year less than 105% of the final preceding year levy.

Monthly Meeting of the Stephenson County Board Tonight – Online Information Limited!

Next meeting on November 14, 2013 at 6:30 pm at the County Board Room at the Stephenson County Court House, 15 N. Galena Avenue, Freeport.

Although there is an agenda online, information to be discussed on the agenda is not included making it impossible to evaluate items to be discussed and voted upon.

Some items to be covered this meeting:

Adoption of the Annual Appropriation Ordinance for Fiscal Year 2013-2014 (not attached)

Adoption of the Property Tax Levy for Fiscal Year 2013-2014 (not atttached)

Approval of Real Estate Agent Contract to represent the County in the sale of Mill Race Crossing Property (Agent not named on Agenda)

For a brief outline of the agenda go to
http://co.stephenson.il.us/board/Minutes/2013/CoBrd/11-14-2013.pdf

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Case of the Week – If You Make Noncash Donations – Those Appraisals Made by Employees of Charities May Be Worthless!

The Tax Court disallowed charitable deductions for clothing valued at $9,500 by the taxpayers because they did not obtain qualified appraisals for the contributed property. The taxpayer said that while they could not definitively identify the various persons whose initials appeared on the appraisals submitted as evidence, they assumed the appraisers were volunteer employees of the thrift shop. The court said that the regulations preclude the charity or an employee of the charity from serving as a qualified appraiser.

See Haskett v. Comm’r, T.C. Summary 2013-76 (9/26/13)

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We are experiencing higher than normal system traffic. To avoid long wait times, please try to access the system during non-peak periods – weekdays, before 9:00 am or after 6:00 pm or on weekends. We apologize for the inconvenience.

The above is a recent notice on an IRS website – translated this means:

We have spent billions on our computers, but they still do not work. We recommend that if you wish to get through to us that you contact us between 1 and 3 am. Our agents will be sleeping at that time, but will review your message during normal working hours. Please avoid any profanity when leaving messages since we have computer programs written by the National Security Agency that automatically delete messages containing profanity or obscene gestures. These deleted messages are then forwarded to the appropriate governmental agency for further action. And frankly we don’t give a damn if this inconveniences you. Remember we non-essential employees have had to go to back work and deal with people like you which we find rather inconvenient.

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Case of the Week Decided November 1, 2013 – United States Court of Appeals for the Seventh Circuit Rules Against Titan Tire Union in Freeport, Illinois

An arbitrator ruled that Titan Tire of Freeport must pay the salary of the Union President which was nearly $80,000 and about $50,000 for the Benefit Representative. The ruling was upheld by the Federal District Court. Titan Tire appealed the ruling, and the decision of the District Court was reversed. The Court Stated:

The arbitrator found that the labor agreements between Titan and the union required Titan to pay the full-time salaries of Local 745’s President and Benefit Representative. However, such an agreement violates the plain language of Section 302(a) of the LMRA and is not exempt by Section 302(c) because the President’s and Benefit Representative’s full-time salaries are not vested rights earned “by reason of” their former employment at Titan. Rather, the President and Benefit Representative earn their current salaries because of their service to Local 745 members. Because the arbitrator’s order to Titan to reinstate direct salary payments to the President and Benefit Representative would require Titan to violate Section 302, its decision must be vacated. For these and the forgoing reasons, we REVERSE and REMAND for further proceedings consistent with this opinion.

For the full ruling see Titan Tire Corp. of Freeport, Inc. v. United Steel, Paper and Forestry etc., No. 12-1152 (November 1, 2013) at
http://media.ca7.uscourts.gov/cgi-bin/rssExec.pl?Submit=Display&Path=Y2013/D11-01/C:12-1152:J:Manion:aut:T:fnOp:N:1233682:S:0

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City Council Meeting Tonight – 1st Reading of Residential Rental Ordinance- Citizens Beware!

6:00 pm at City Council Chambers at 524 West Stephenson Street, 3rd Floor
If you have Comcast Cable, go to channel 17 to watch live.
See complete agenda at http://www.ci.freeport.il.us/citygovernment/Agendas/A20131104.pdf

Some items of interest at meeting:

Presentations on following: rental property registration process in other municipalities, housing demolitions to date and estimated costs, and City Hall alternatives.
These presentations should all be interesting and worth watching!

Reappointments of Jon C. Staben (appointed first time on September 16, 2013) and Stephen Lafferty to Planning Commission
1st Reading of Ordinance dealing with regulation of residential rental property – All residents of Freeport should read this ordinance. To read it go to http://www.cityoffreeport.org/OrdRes/COUNCIL%20ITEM7%2020131104.pdf

Issues that should be addressed:
Will the benefits of this ordinance justify its cost?
Will this ordinance solve or reduce the crime issues facing Freeport?
Will the registration fees pay for the enforcement of this ordinance? The answer to this one is simple – NO. It will create another level of bureaucracy in the City of Freeport and in the end just more taxes will be paid by the law abiding residents of Freeport and small business owners.

The Crime Free Housing Lease Provision required in each lease will not solve the crime or housing issues facing this community. Perhaps, in the past if laws had been enforced with existing police personel and resources properly allocated, the City would not be facing these issues today.

As has been pointed out before, the Gitz Adminstration has many of the same people as in the previous administration. The result – the same failed polices as in the past. More bureucratic regulations will not help if there are not people capable of implementing them.

Example of law abiding citizen penalized by this ordinance:

John Hightaxpayer has a duplex which he has rented for 20 years with no problem. In fact he has never really needed written leases since his tenants tend to stay for many years with no problems, and at the present time his wife’s mother is renting one of the units. Now under GitzCare he must do the following:

1. He must register his rental unit by April 1, 2014 or pay a fine. An annual registration fee of $35.00 must be paid.
2. All of his rental agreements must be in writing.
3. Rental agreement must include 2 pages of Crime Free Housing Provision.
4. His wife’s mother has another daughter who usually visits mother for week or more each year. Surprise – mother must notify John Hightaxpayer in writing of the first and last names of the guest (the daughter) who will be residing in the unit for 7 days or more. Roger Policeman sees that there is a visitor at the John Hightaxpayer duplex. Since Roger Policeman was assigned to seat belt violation duty, he was not that busy. In fact Roger Policeman lives in the same neighborhood. Roger Policeman in a contemptuous mannor contacts John Hightaxpayer, and asks him (oral or written request can be made by police) to furnish the name of the visitor. John Hightaxpayer says it is none of his business and makes some offensive remark to Roger Policeman. The policeman arrests John Hightaxpayer for disorderly conduct. Meanwhile a few blocks away a store is robbed and clerk murdered, but Roger Policeman misses the call since has just cuffed John Hightaxpayer.

Unfortunately, good intentions do not always equal good laws.

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Elder Law Seminar Wednesday, October 30, 2 pm at Oakley Courts at 3117 Kunkle Blvd, Freeport

Attorney Heather McPherson of McPherson Law Offices, Freeport, will present a program on legal issues relevant to all and especially to seniors and their families

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Case of the Week – Noncompetition Agreements in Illinois – Two Years of Employment Required

The First District Appellate Court in a recent decision held that a noncompetition agreement is not valid and enforceable if an employee is fired or resigns within two years. Illinois companies can still require newly hired workers to sign noncompetition agreements, but if the employee is employed for less than two years the restrictive covenant will lack the consideration necessary to be enforceable by an employer. There must be two years of continuous employment to be considered adequate consideration to support a postemployment restrictive covenant.

For details see Fifield v. Premier Dealer Services, Inc., 2013 IL App (1st) 120327

Click to access 1120327.pdf

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Case of the Week – Tax Preparer Could Not Deduct Cost of Hotel So She Could Get a Good Night’s Rest!

Taxpayer testified that she ran Joyce’s Tax Service from her home and that clients would come to her home to have their tax returns prepared. The taxpayer testified that living in her neighborhood was stressful and that she felt harassed by her clients who would call her at home at any hour. For these reasons taxpayer contends that it was necessary for her to travel “just to get rest so that * * * [she] could function.” She provided invoices from a Holiday Inn, a car rental service, and a casino.

Surprise! The Tax Court found that taxpayer’s travel for a good night’s rest was a personal expense, not a deductible business expense.

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A Response to Mr. Gitz – More Government and More Ordinances Are Not the Solution to Freeport’s Problems!

Mr. Gitz in his weekly column in the Journal Standard on October 13 talks about new ordinances to regulate noise and other undesirable conduct in the community. He said problems are contagious. He talks about delapidated houses and the impact of living next to one. He states that he would like every street to be a neighborhood of choice. My reponse to you Mr. Gitz is that the City of Freeport is part of the problem. Mr. Gitz and the present city council should also be concerned about the impact of living and driving on streets everyday in this community that are in such bad shape that they are not even safe. No wonder people fail to maintain their homes. For years they have paid high taxes and have seen few results. Mr. Gitz – there are few neighborhoods left in Freeport which are neighborhoods of choice. Mr. Gitz states that property owners have to act responsibly in order to restore our Freeport. The question is – when is OUR government going to start acting responsibly? Those in government believe that more money (which means more taxes) and more laws will solve all problems. More money and more laws are not the solution. The City of Freeport must allocate its resources where they will do the most good for the majority of people living in this community which means fixing the streets and a police department enforcing existing laws.

Oh, by the way Mr. Gitz, where are the ordinances that say the City should maintain city owned buildings such as the Germania, City Hall, and the Carnegie Library? Is it true that intentional neglect and waste is acceptable in the public sector? What a shock – one standard for those in the public sector and another for those in the private sector who pay the bills!

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