Carpentersville mulls gasoline tax

Carpentersville leaders are revisiting a proposal to impose a motor fuel tax to maintain the village's street and sidewalk improvement program.

The village's audit and finance commission last week recommended the 2-cent per gallon hike to help pay off a $10 million bond the village is expected to issue next spring for street and sidewalk improvements, as well as sewer and water line replacement.

If the proposal is approved by the village board, Carpentersville would become the first municipality in Kane County to impose its own motor fuel tax.

Kane County doubled its gas tax to 4 cents per gallon in February.

Officials in Carpentersville estimate the local tax would generate about $250,000 a year.

Trustee Paul Humpfer, who also serves as the audit and finance commission chairman, said the village will need to take out another $10 million bond before next summer.

"We need to keep that going because we have made too much good progress for us to stop next summer," Humpfer said. "But that's the only scenario I support, is if the money is earmarked for street and sidewalk projects."

The village issued a $10 million bond in June 2006 to pay for a portion of its rolling five-year capital improvement plan.

That fund is expected to last the village until the end of the current fiscal year, officials said.

In February, village officials proposed imposing a 2-cent tax to eliminate a $2.4 million shortfall in the village's capital improvement budget.

The budget deficit forced the village to defer several street and sidewalk repair projects to next year.

"A majority of debt we are incurring is going toward streets and sidewalks in areas of the village that have not been touched in 30 years," Village President Bill Sarto said. "This money will be earmarked for capital improvement projects."

Humpfer, though, cautioned that the revenue from the proposed gas tax would not cover the debt repayment obligations.

"We would still be half a million dollars short," Humpfer said of the $750,000 a year the village would need to repay the $10 million bond. "Fortunately, we don't have to levy for that until next year, but money is not going to magically appear. Our dollar tree has been plucked clean and we need to think ahead."

Other options included increasing ambulance fees, while commissioners nixed a 2-percent food and beverage tax.

Ambulance fees range from $200 to $600, depending on the type of service provided.

Fire Chief John Schuldt said the village is in the process of comparing fees in nearby municipalities.