Tax increases on way in Warrenville

Residents and businesses in Warrenville have until next summer to prepare for the first in a series of tax increases city council members adopted to help pay for road repairs and other capital improvements.

The council on Tuesday agreed to create three new taxes, increase an existing one and redistribute another to raise revenue to fill a projected $1 million deficit in Warrenville’s capital improvement plan.

“What we are trying to do here is to look after the best interest of the assets of the community,” Mayor David Brummel said after the 6-2 vote. Aldermen Stu Aschauer and Fred Bevier voted against the measure.

Most of the roughly $1.9 million Warrenville spends each year on capital projects is devoted to roads, sidewalks, storm sewers and streetlights. About $288,000 of the total is set aside for building equipment and vehicles for the police and public works departments.

A decade ago, Warrenville adopted a capital infrastructure plan that established a 15-year maintenance cycle for its roads. But the sources of revenue officials identified at the time haven’t kept up with increasing needs. So the higher taxes are needed to address the deficit, officials said.

Brummel said the move wasn’t an easy decision for council members.

“None of us are sitting pretty,” he said. “I’m on a reduced income. My business is down substantially for the last three years. I can’t afford this any more than anyone else, but I’m willing to make that sacrifice.”

Residents and businesses in Warrenville won’t start paying higher taxes until July 1, 2012. That’s when the city is scheduled to begin collecting a 6 percent telecommunications tax. That’s an increase from the tax’s existing rate of 4 percent.

The city doesn’t have to implement the increases right away because it’s going to spend about $700,000 of its reserve cash to pay for capital improvement projects next year. As a result, three new taxes won’t take effect until May 1, 2013. The new taxes are: a 3 percent natural gas utility tax, a 1 percent electric utility tax and a 4-cents-per-gallon gasoline tax.

While Warrenville has the authority to enact all the changes without voter approval because it has home-rule powers, officials chose to delay a final decision until residents had enough time to provide input. The proposal was revised last month after officials sponsored a series of public meetings to get feedback.

Officials originally were considering whether to suspend the city’s hotel-motel tax grant program so its $200,000 in annual funding could be used for capital expenditures. Now the grant program will be cut in half and still provide $100,000 a year to help pay for local events, including farmers markets, art shows and summer concerts.