SEPTEMBER 2020 NEWSLETTER To promote, educate and advocate for the Residential Building & Remodeling Industry; providing resources that benefit industry professionals and consumers in the communities we serve. Bobby Robinson & Ken Heidbreder with Fulford Home Remodeling were honored with a Certificate of Congressional Recognition by Congressman Mike Bost for building intubating boxes to support those in need during the COVID-19 pandemic. While Ken & Bobby built these boxes on a doctors request, they never had accolades in mind, but the HBR staff stepped in and made sure they were appreciated for all they do. WHATS INSIDE 1st Place Team with a score of 128 C.A. Jones, Inc. Bury the Hatchet Event Review Upcoming Event Registrations Sep 18 - Sport Clay Shoot Challenge Oct 1 - Go Kart Racing & Bowling Event Oct 13 - Membership Event Nov 5 - Trivia Night From left to right: Nick, Tom, Tricia Buehne (PWB Chair), Justin and Travis savoring the moment with their trophies in hand and cash winnings. Another :shout out” to Justin becoming our first Axe Master with a score of 56. New Home Starts Report Home Building Impact of Local Gov’t Revenue Membership Renewals & Incentives Statewide Sexual Harassment Training HBA of Illinois “ Vote NO Progressive Tax Coalition” NAHB Eye on Housing - Single Family Home Size NAHB International Builder Show Illinois Policy Institute - MidAmerica Airport financial burden Page 1
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Alliance Brothers SCORE =126 1ST Arrowhead Building Supply SCORE=128 CA Jones A & B A SCORE =184 B SCORE=128 First Mid Bank & Trust SCORE=23 3RD First Nat. Bank of Waterloo SCORE=43 Fulford Home Remodeling / Providence SCORE=68 Light Brite SCORE=131 2ND EDC Drywall/Blindquest/Metro Marble & Granite SCORE=62 R.P. Lumber/Pella STL SCORE=89 SLD Enterprises A & B A SCORE =139 B SCORE=54 SNACK & SODA SPONSORS Yaekel & Associates A SCORE=106 Yaekel & Associates B SCORE=130 Page 4
SPONSORED BY First Place TEAM NAME CA Jones CA Jones Light Brite SLD Enterprises CA Jones Fulford Home Remodeling Arrowhead Building Supply Yaekel & Associates Insurance Yaekel & Associates Insurance SLD Enterprises TEAM CA JONES SECOND Place Yaekel & Associates Insurance Alliance Brothers Pella STL CA Jones Arrowhead Building Supply CA Jones Light Brite CA Jones CA Jones Alliance Brothers Yaekel & Associates Insurance Alliance Brothers EDC Drywall Yaekel & Associates Insurance Arrowhead Building Supply People’s National Bank SLD Enterprises Metro Marble & Granite SLD Enterprises SLD Enterprises TEAM SLD ENTERPRISES THIRD Place 1st National Bank of Waterloo Light Brite SLD Enterprises Yaekel & Associates Insurance Arrowhead Building Supply Light Brite Alliance Brothers RP Lumber Yaekel & Associates Insurance 1st National Bank of Waterloo Yaekel & Associates Insurance CA Jones Fulford Home Remodeling Providence Bank Fulford Home Remodeling RP Lumber 1st National Bank of Waterloo BlindQuest First Mid Bank & Trust TEAM LIGHT BRITE Page 5 1st National Bank of Waterloo SLD Enterprises Metro Marble & Granite SLD Enterprises Laura Mergelkamp Lacy Hartlieb Steve Dill Jack Klopmeyer Tim Murphy Doug Meyer Matt Chacon Joe Knox Jody Crossno Alexis Phillips Chris Finnerty Mike Needles John Snapat Karen Rainge AXE THROWER SCORE 56 55 52 51 50 49 46 44 43 42 42 42 39 37 36 36 35 35 34 34 33 30 28 27 26 26 26 26 25 24 23 22 22 22 20 20 20 19 13 12 12 9 8 6 5 5 5 5 4 3 3 3 0 Justin Lowder Tom Patton Tyler Soulcer Brian Rauk Mark Davitz Bobby Robinson Tony Schult Jim Lugge Derek Klopmeyer Craig Lovell John Klopmeyer Anthony Brian Gaskill Nick Lovelace Dean Johnson Tom/Nick/Justin Tom Kuhn Travis Hermyn David Frazier Brock Spindler Jay Russell Robert Chacon Matt Mullinex Jerry Yaekel Jessica Johnson Beth Zabala Brett Furlow Drew Halliday Brad Spaulding Michelle Rauk Kent Recklein Aaron Klemme Lauren Smith Lisa Worman Kris Dempsey Sheila Haselhorst Christine Kuhloff Harry Klaus Amanda Schulte
St. Clair County 2016 2017 2018 2019 2020 Madison County 2016 2017 2018 2019 2020 Monroe County 2016 2017 2018 2019 2020 Clinton County 2020 YTD Jan 32 32 32 23 22 Jan 14 11 19 17 21 Jan Feb 12 8 12 6 6 5 8 11 7 4 Jan Feb 3 1 Feb 30 27 23 25 20 Feb 19 24 20 18 20 Mar 8 10 6 6 7 Mar 3 Mar 44 39 35 22 28 Mar 29 28 23 20 25 Apr 10 9 7 5 4 Apr 6 Apr 30 38 28 25 20 Apr 30 22 25 23 24 May 40 29 29 22 31 May 40 21 22 21 22 May 18 7 7 7 6 May 4 Jun 34 37 29 20 33 Jun 27 19 21 19 39 Jun 15 9 5 8 6 Jun 8 Totals 213 202 176 137 154 YTD Totals 159 125 130 118 137 YTD Totals 71 52 38 35 38 YTD Totals 25 5 Carlyle 3 Aviston, Bartelso, Breese & St. Rose 2 Germantown 1 Centralia, Jamestown, Patoka & Trenton 18 Unincorporated 17 Columbia 3 Waterloo 31 Edwardsville & Glen Carbon 27 Highland 25 Troy 23 Unincorporated 5 Alton 4 St. Jacob 3 Maryville 37 Unincorporated 27 O’Fallon 25 Shiloh 15 Mascoutah 14 Swansea 12 Lebanon 11 Fairview Heights MarketGraphics provides the HBR with these permit reports and offers many other housing and subdivision analysis reports. Contact them today to see how they can be of service to you Joe Zanola zanola@zanolaco.com Page 6
THURSDAY, OCTOBER 1ST THE EDGE, BELLEVILLE, IL 701 S. BELT W 4pm Go Kart Races Prizes for 1st, 2nd, & 3rd Place Best Race Times 5pm Food & Drinks Pizza and 2 Drink Tickets 6pm Bowling Two Games with prizes for 1st, 2nd, & 3rd Place Primary Contact: Company Name: Phone Number: Email Address: Bowler Name: Bowler Name: Bowler Name: Bowler Name: Bowler Name: $50 PER BOWLER / GO KART RACER (NO FLIP FLOPS, SANDALS, OR HEELS OVER 1”) BOOZE BARROW RAFFLE TICKET Tickets: 1 for $5, 3 for $10, or 10 for $20 Limited number of chances sold. Winner does NOT have to be present to win EVENT SPONSORSHIPS $100 Go Kart Track Sponsor Logo on drink tickets & signage at the race track $350 Strike Sponsor Includes team, bowling lane signage & invitation logo TOTAL DUE $: INVOICE (members only) CHECK ENCLOSED VISA / MC (credit card payments will be charged a 4% convenience fee) CC # EXP DATE CVC SIGNATURE Cancellation will be accepted 5 days prior to HBA PWB Event ~ No refunds or credits will be given for cancellations or no-shows. Home Builders Association Professional Women in Building Metro East, 6100 West Main St., Maryville, IL 62062 Page 7 ZIP CODE
Vote NO on the Progressive Tax Bill Ward – Executive Vice President – HBAI Pritzker has pledged $51 million of his own money to pass the amendment, which will need 60% approval of those voting in Illinois General Election in November. The coalition has a website: noprogressivetax.com. There, you can: learn why to vote no; how to get involved; contribute to the cause; and, buy items like shirts and coffee mugs that say, “Vote No on the Progressive Tax.” The Home Builders Association of Illinois has joined the “Vote No on the Progressive Tax Coalition” to defeat Governor J.B. Pritzker’s plan to bring a progressive, graduated income tax law to Illinois. HBAI joins forces in this effort with the Illinois Chamber of Commerce, the National Federation of Independent Businesses, the Illinois Farm Bureau, and the Technology & Manufacturing Association to fight back at higher taxation. HBAI has pledged a $5000 contribution to the coalition through its political action committee, HomePAC. In return, the coalition is providing HBAI with 250 yard signs and 1000 brochures asking our members to Vote No on this tax proposal. The proposed constitutional amendment will appear on the November ballot asking voters whether the state should move from its current flat income tax to a system in which different rates are applied to different income levels. The current flat tax prevents the Governor and the Illinois General Assembly from picking and choosing who will pay for future income tax increases and how much each income bracket will be burdened with the tax. Under the Governor’s proposal, $3.7 billion new dollars would be raised by taxing families and businesses earning $250,000 or more. To support his initiative, Governor Page 8 Illinoisans already pay: •The 2nd highest property taxes in the Nation •Highest Gas Taxes in the Midwest •Highest Sales Tax Rates in America •Highest Wireless Tax Rate in the Country. Given the tools that state government already has to raise revenues, and given that we have the highest debt of any state in the U.S., how can we possibly trust them to use new funds wisely and efficiently? If you believe you already pay too much taxes in Illinois, you owe it to yourself to go to noprogressivetax.com right now and sign up for this campaign. Our coalition is small now but will build in the days and weeks ahead. HBAI is proud to be a part of this coalition and we will do everything we can in the days ahead to protect you and your hard-earned income. 2 Minute
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New Single-Family Home Size Leveling Off? BY ROBERT DIETZ ON AUGUST 19, 2020 New single-family home size trended lower during the second quarter 2020 at the beginning of what we are forecasting will be a pivot to larger home size over the next two years. According to second quarter 2020 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area ticked down to 2,264 square feet. Average (mean) square footage for new single-family homes decreased to 2,458 square feet. On a less volatile one-year moving average, the tentative beginning of a leveling off of new singlefamily home size can be seen on the graph above. Since Great Recession lows (and on a one-year moving average basis), the average size of new single-family homes is now less than 5% higher at 2,482 square feet, while the median size is less than 8% higher at 2,265 square feet. The post-Great Recession increase in single-family home size was consistent with the historical pattern coming out of downturns. Typical new home size falls prior to and during a recession as home buyers tighten budgets, and then sizes rise as high-end homebuyers, who face fewer credit constraints, return to the housing market in relatively greater proportions. This pattern was exacerbated during recent years due to market weakness among first-time homebuyers and supply-side constraints in the building market. However, declines in size over recent years were a reflection of builders adding more entry-level homes into inventory. Going forward we expect a different post-recession pattern. Home size is expected to level off and then increase, given a shift in consumer preferences for more space due to the increased use and roles of homes (for work, for study) in the postCovid-19 environment. Eye On Housing National Association of Home Builders Discusses Economics and Housing Policy Page 10
1st, 2nd Thursday November 5TH CASH prizes for and 3rd ___ $25 per Participant INCLUDES dinner & 2 complimentary drinks ___ $200 Full 8 person team ___ $100 Round Sponsor ___ $300 Event Sponsor (Full Team & Round) __________________________________________________________ Primary Contact __________________________________________________________ Company Name __________________________________________________________ Phone # / Email Address Player Names Bella Vista Winery 6633 E Main Street Maryville, IL ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ METHOD OF PAYMENT: ___ Check Enclosed ___ Invoice ___ Charge to Visa/Mastercard* * credit card payments will include an additional 4% convenience fee ______________________________________________ ____________ Card # Exp Date _____________ _______________________________________________ CVC Signature Cancellation will be accepted 5 days prior to TRIVIA NIGHT. No refunds or credits will be given for cancellations or no-shows. Home Builders & Remodelers Metro East Association, 6100 West Main St., Maryville, IL 62062 O: 618. 343.6331 - Fax: (618)343-6335 - Email: tbutler@hbrmea.org Page 11 place
in St. Clair County The Impact of Home Building The Home Builders & Remodelers Association recently conducted this report thru the NAHB to capture the effect of construction activity, the ripple impact and ongoing impact that results from new homes becoming occupied. Below is a detailed breakdown of each phase for the local wages & salaries side of this impact. We will continue to share this information, in parts, for you to know that our industry has one of the biggest roles in our local economy. This information is available to our members and will be shared with our municipalities in the near future. The distinguishing aspect of local government revenue shows industry structure accountability while being consistent with revenue being collected by all governments in the area of analysis. During the Construction & Ripple phase its important to point out that developer infrastructure is dedicated to municipalities that have minimal upkeep needs for years to come. Local Government Revenues are typically set income formulas to offer services and stability to our communities. Page 12
RENEWING MEMBERS Alliance Brothers - 1 year Bank of Hillsboro - 9 years CMI Construction - 13 years DRS Construction & Landscaping - 3 years First Mid Bank & Trust - 2 years Fischer Lumber - 24 years Garrett E. & Herschel E. Johnson RE & Dev - 37 years Heneghan and Associates PC - 2 years Homes by Deesign - 10 years Negwer Materials - 20 years PASS Security - 28 years REMODELERS COUNCIL Chesley Fence & Deck Henges Interiors Srogus Construction PROFESSIONAL WOMEN Homes by Deesign Light Brite IN BUILDING COUNCIL Page 13
Visit our Showroom 850 South Mulberry Street Millstadt, IL 618.476.1345 www.custommmarble.net Manufacturer of the finest Cultured Marble products for over 40 years. Provider & Installer of Solid Surface, Quartz & Granite countertops. Page 14
2020 WWW.HBRMEA.ORG/JOIN-HBR-TODAY Page 15
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Each year St. Clair County taxpayers must add money to keep MidAmerica St. Louis Airport open. COVID-19 could turn a hefty financial burden into an albatross. St. Clair County taxpayers had to add another $7 million to keep MidAmerica St. Louis Airport open in 2019, according to auditors. That brings the total subsidy to $111.3 million since 2002, when auditors first reported the amount needed to balance the airport’s books. That $7 million infusion was up from nearly $6.3 million needed in 2018, and came even though auditors said rising passenger service and other operations added $338,000 over the prior year and expenses were cut $1.2 million. “It is anticipated that the County will not be able to increase budgets again and that general fund balances will continue to help finance Airport operations in the near future,” auditors wrote, noting that cuts in state revenues and increases in unfunded state mandates were driving overall county budget problems as well. The bigger question may be how much cash will be needed during 2020, as COVID-19 decimates the airline industry and chokes passenger traffic. Current passenger traffic data for MidAmerica was unavailable, but the only passenger carrier there offered 10 destinations a year ago and currently lists only seven. Airlines nationwide saw a 96% drop in passengers during the first full month of the pandemic. On Aug. 27, passengers remained at 28% of what they were the prior year, according to the Transportation Security Administration. St. Clair County homeowners should be concerned that scarce resources are flowing to a project unable to turn a profit. They should also ask how bailing out the airport is affecting their property taxes and home values, especially the value of a rural home where they rarely see a sheriff’s deputy on patrol because that money is keeping an airport staffed. Since the Great Recession, St. Clair County home values fell by 23% after adjusting for inflation, according to data from the Bureau of Economic Analysis. Also from 2007-2017, Illinois Department of Revenue data show property tax bills in St. Clair County grew 5%, after adjusting for inflation. County leaders have said increases in passenger traffic will improve the airport’s finances. Traffic did increase slightly in 2019, with 153,753 passengers getting on or off a plane. That was just shy of 1,500 more than in 2018, according to Federal Aviation Administration data. But it also meant taxpayers essentially handed nearly $46 to each passenger in 2019, up from just over $41 in 2018 when the cash used to balance the airport’s books is divided by the number of passengers. Interest paid on airport debt was $4.2 million in 2019, which continues to be a major expense although it was down slightly from the prior year. The aging airport also depreciated by $6.1 million. That drove the airport’s $2.8 million reduction in net position, which is similar to net worth. The airport originally cost $300 million. In 2015, St. Clair County leaders decided to refinance the remaining $40 million in construction debt and stretch out repayment to 2045, a move that increased taxpayers’ debt burden to $88 million. And, as auditors stated, “interest continues to be a major expense of the Airport.” St. Clair County received $40 million as its share of property taxes in 2019, which was $1.7 million more than the county budgeted for. Where did the windfall money go? Apparently it was sucked into a jet engine and shredded. Brad Weisenstein, Editor Page 17
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6100 West Main Street Maryville, IL 62062 Phone: 618-343-6331 E-mail: tbutler@hbrmea.org Web: www.hbrmea.org Page 20
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