W. Dundee discusses proposed new taxes, fees

West Dundee officials are giving themselves another meeting to go over how they can fill an estimated $300,000 shortfall in the upcoming budget.

Monday night, the board kicked around three ideas: charging residents in single-family homes for refuse collection, imposing a 1 percent tax on food and beverages, and establishing a 2-cent-per-gallon tax on gasoline.

Trustee Patrick Hanley said the looming closure of Target in May as well as that of Best Buy and increased payouts to police and fire department pensions are the reasons the village finds itself in the red.

Most trustees, including Village President Chris Nelson, were against residents paying for their trash collection, a service expected to cost $580,000 in the next fiscal year.

While the two proposed taxes would be spread among residents and nonresidents, West Dundee residents would carry the sole burden of the trash collection fee, Nelson said.

But Hanley said the village can no longer afford to subsidize trash collection.

“The public needs to pay for services they get, plain and simple,” Hanley said.

The board was much more amenable to the idea of the gas, food and beverage taxes because they aren't completely on the backs of West Dundee residents.

One of the caveats to them is that collecting them is the village's responsibility, which means they would require the village to hire a part-time employee to help, officials said.

The gasoline tax would generate about $200,000 a year, and Hanley expressed concern that people may bypass West Dundee to refuel in neighboring towns that do not tax gasoline, including Elgin, Algonquin and East Dundee.

The food and beverage tax, as proposed, would apply to alcohol and restaurant cuisine and generate between $250,000 and $275,000 a year.

While Trustee Tom Price questioned whether that tax would scare away would-be merchants, Community Development Director Cathleen Tymoszenko said it would not affect the village's ability to attract and retain businesses. In her experience, nobody has never questioned whether that tax exists, she said.

The next budget discussion is scheduled for 7:30 p.m. April 14 at village hall. Trustees hope to adopt the budget April 21.

The next fiscal year begins May 1.