Des Plaines approves increases in taxes, fees

Des Plaines city officials Monday night gave an early nod to increasing various taxes and fees next year to fund operations with the idea that some of it can be reversed at a later date.

The council authorized the following tax rate/fee increases as part of the 2010 budget with the proviso that there may be changes before final approval:

-a water rate increase of 5.7 percent from the 2009 rate effective Jan. 1, 2010. The new rate would be $3.412 per 100 cubic feet.

-doubling the local option gasoline tax from two cents to four cents a gallon to provide increased funding for street drainage system improvements and the city's rear-yard drainage program in 2010. The new rate would be effective Jan. 1, 2010, with a sunset provision of Dec. 31, 2013.

-an increase to the storm sewer fee of 33 cents per 100 cubic feet to accelerate the timeline of improvements identified in the stormwater master plan. The fee increase is effective Jan. 1, 2010, and sunsets Dec. 31, 2013.

-an increase to the electric utility tax imposed on residential and nonresidential consumers. The new tax rates, determined by kilowatt hours used or consumed in a month, are projected to raise an additional $1.03 million in revenue in 2010.

Several city aldermen questioned whether the city should be raising gasoline and electricity taxes so much during tough economic times.

"I am still having concerns that we are taxing more than we need," 7th Ward Alderman Dan Wilson said adding, city staff initially recommended raising the electricity tax only enough to generate $600,000 more.

City Manager Jason Bajor said the city actually needs more than the $1.03 million the electricity tax increase would generate.

He added, the proposed increases primarily would help the city alleviate flooding in streets and backyards.

Ward 6 Alderman Mark Walsten said Des Plaines' 4-cent gas tax may be among the highest in the area. He feared it would force residents to drive farther for gas and drive independent gas stations out of business.

Several aldermen supported the idea of increasing the gas tax by just one cent, but that motion failed.

"I don't think this is the year to add another tax on residents," 4th Ward Alderman Jean Higgason said. "All of these programs are very important. I just don't believe in this economic climate we should be imposing a 2-cent gas tax. This is not the year to accelerate (flood prevention programs)."

Nonetheless, the council approved the increases with the understanding that the numbers could change before final adoption. Whatever tax and fee increases are ultimately approved, the council would review them annually.

The city council on Monday also approved the 2009 property tax levy for a total of slightly more than $29 million. That's a 1.37 percent increase from the 2008 property tax extension. The city will receive an estimated $39 million from other revenue sources in 2010.

The city's 2010 budget appropriation is expected to be roughly $68.6 million. That includes $54 million for general fund expenditures, $3 million each in contribution toward police and fire pensions, $1.2 million for bond and interest payments, and $6.9 million earmarked for library operations.