Naperville to raise motor fuel tax, garbage collection fees
Naperville will raise its motor fuel tax and garbage collection fees to help fill its budget shortfall.
The city also will divert some of the money it uses for cultural grants to its general fund, and will use some of the money in its reserves.
"I would like to pull all of those levers to some extent so we don't stress any one of them," Councilman Jim Boyajian said.
Councilmen approved the tax increases Monday following months of discussion. The city has been battling to fill what remains of the once $14.1 million budget hole.
The council voted 7-1 in favor of adding 2 cents to the current 2-cent-per-gallon motor fuel tax, despite pleas from area gas station owners.
Councilmen said they like that it is a user fee that will go toward road improvements. The increased tax will generate $1.4 million a year.
Mayor George Pradel and councilmen Paul Hinterlong, Jim Boyajian, Richard Furstenau, Kenn Miller, Robert Fieseler and Judy Brodhead voted in favor. Doug Krause voted no and Grant Wehrli recused himself, as his brother was representing gas station owners.
Residents will also start paying a $2 monthly fee for garbage collection that will generate $960,000 a year.
Both the garbage collection fee and motor fuel tax increase are less than what councilmen considered just weeks ago because they plan to use $1.39 million of the $2.4 million excess money in reserve funds.
Wehrli said he wanted to use all $2.4 million instead of raising the garbage collection fee and that he doesn't believe the city will lose as much state money as some fear.
"I am not going to let Gov. Quinn's draconian scare tactics badger me into charging people more," Wehrli said. "If he wants to reach into taxpayers pockets it's on him, not me."
However, others said they wanted to keep some of the excess reserve money just in case. Boyajian said doing so will give the city additional flexibility.
The council voted 6-3 in favor of the $2 monthly garbage fee after rejecting $1.50, $1.75 and even $2 in previous votes. Ultimately Brodhead, Fieseler, Miller, Furstenau, Boyajian and Pradel voted in favor of $2, while Krause, Wehrli and Hinterlong voted no.
Naperville also plans to divert 25 percent of the money collected from its citywide food and beverage tax to the city's general fund, generating $750,000 for the fund. Money from that tax currently funds Special Events and Cultural Amenities grants, but some say it is generating more for those grants than ever intended.
The council voted 7-2 in favor of the proposal. Furstenau, Wehrli, Brodhead, Fieseler, Miller, Boyajian and Hinterlong voted yes while Krause and Pradel voted no.
Krause voted no on all three revenue proposals, saying he would rather use more of the reserve money that taxpayers have already turned over to the city or raise property taxes, which are tax-deductible.