Rolling Meadows may add electricity fee

The Rolling Meadows city council may tack on a 5 percent electricity tax to bring in more revenue and help dig the city out of debt.

The fee would bring in an additional $1.3 million annually. About $500,000 of that could pay off debt from 2007. The rest could minimize layoffs facing the city starting in 2009, said City Manager Tom Melena.

"Keep in mind, 62 percent of our tax base consists of commercial and industrial," Melena said. "Those are the folks paying a lot of this."

Rolling Meadows homeowners pay electric bills between $60 and $100 per month. The fee increase would add another $36 to $60 annually and go into effect Jan. 1, Melena said.

Last week, Melena presented a plan that also avoided layoffs by making some positions part-time. However, some council members said layoffs were needed in addition to the electricity tax increase because the city's budget is in such bad shape.

"We have a problem with this budget and we need to deal with it," said Alderman John Pitzaferro. "I believe we've been fiscally irresponsible with the people's money. If people ran their household like this, they'd be out of a home."

Pitzaferro was referring to the more than $2 million deficit in 2009. Rolling Meadows is also facing a $530,000 shortfall from 2007 and a $1 million hole from 2008.

The council may also postpone building a fire station at Algonquin Road just west of Weber Drive until 2010 to save money.

Besides the layoffs, city officials also discussed eliminating refuse bags and making the full-time position at the Police Neighborhood Resource Center a part-time position instead. City officials first established the Police Neighborhood Resource Center in the heart of the East Park Apartments in 1991 as a way to reach out to the mostly Spanish-speaking immigrant community.

About 74 percent of the city's operating budget pays for city employee salaries and benefits.

Finance officials blame the tough economy for the city's budget problems. This year, Rolling Meadows saw a 43 percent increase in fuel and vehicle costs, a 15 percent increase in the price of buying water from Chicago and a 9 percent increase in garbage pickup fees.

The Rolling Meadows City Council will host a public hearing on the budget at 7:30 p.m. on Tuesday. Nothing is final until the council officially approves the budget in December.