St. Charles aldermen split on proposed 2-cent gas tax
Faced with a potential budget shortfall in the next few years, St. Charles aldermen on Monday were split on whether they should implement a new gasoline tax to help fill that gap.
At 2 cents per gallon of fuel, the proposed tax would be expected to generate about $400,000 annually to fund roadway maintenance projects, Finance Director Chris Minick said. The city staff recommended the tax go into effect in November at the city's nine gas stations.
Aldermen acting as a government services committee shot down the measure in a 4-3 vote, with most opponents saying they'd prefer to explore a property tax levy increase. Despite the negative recommendation, however, the tax will go before the city council at an upcoming meeting, where the vote has the potential to change because three more aldermen could vote.
Alderman Todd Bancroft, the committee chairman who was unable to vote Monday, indicated he would support the gas tax as one of multiple revenue sources the city should be evaluating.
“We should use every tool we have in the bag,” he said. “I think we've got to continue to be creative.”
Aldermen Ron Silkaitis and William Turner were absent from the meeting. If the city council vote is tied, the tiebreaker would be cast by Mayor Ray Rogina, who previously voiced his support for the additional revenue.
The gas tax initially was proposed during budget discussions this spring, when Minick said the city would not be able to finance infrastructure improvements planned for the next three to five years without new revenue sources. Officials held off on making a decision at the time, saying they wanted more information.
After hearing a handful of alternate funding options Monday, most aldermen said they'd like to consider raising the property tax levy, which has been frozen at about $12 million for the last nine years. Those discussions would likely continue in the fall, Minick said.
Alderman Steve Gaugel, who voted against the gasoline tax, said he believes the city should determine how much money it needs for capital improvements and implement one revenue source — likely a property tax hike — that could sustain that.
“I think we have to do one or the other, and I don't think we can do both,” he said, noting he doesn't want to “keep piling on” taxes.
Alderman Lora Vitek took an opposite approach, saying she thinks the city should be looking at multiple sources of income. She voted in favor of the gas tax and also asked the city staff to create an ordinance to increase the city's local alcohol tax by 1 percentage point.
Her request, which she called a “no brainer,” received a 4-2 vote from the committee, meaning aldermen will revisit the concept at an upcoming meeting. The proposed increase would bring in an additional $550,000 annually, Minick said.
Aldermen Dan Stellato and Rita Payleitner also favored the gas tax. Gaugel and Alderman Art Lemke both voted against considering the alcohol tax hike.