First installment of new fuel tax in Lake County brought in $945,000
The first installment of Lake County's 4-cent-per-gallon gas tax, approved in March as a new revenue source for transportation-related projects, is in and on target with initial estimates.
A check for $945,000 recently received by the Lake County Division of Transporation represents the proceeds for July, the first month the new tax was collected. State disbursement typically arrives a few months after the tax is collected.
One month is a snapshot, but it's a good sign for the measure, known as the county option motor fuel tax.
"Until we have a year or two or three, we don't really know what this fund source will provide," said Shane Schneider, director of the transportation division. "We think $10.4 (million a year) is a good place to start."
Lake County didn't have authority to impose the tax until 2019 and became the last of the collar counties to do so.
Supporters said a new source of revenue was needed to help address $1.7 billion in improvements identified in the county's 2040 transportation plan.
After considerable debate, the original proposal for an 8-cent-per-gallon tax was reduced to 4 cents per gallon. The county board approved it in March by a 14-7 vote.
The county option motor fuel tax is one of five revenue sources - not including federal or state grants - in LCDOT's proposed $85 million capital budget for the next fiscal year, beginning Dec. 1.
Four projects are proposed to be funded by the county option motor fuel tax in the 2022 budget year:
• Design engineering for the realignment of Cedar Lake Road from between Hart and Nippersink roads in Round Lake.
• A preliminary engineering study of the Fairfield Road corridor from Route 134 to Route 60 in Avon Township.
• Feasibility study of grade separations of the CN Railroad at Monaville Road near Lake Villa and Peterson Road in Libertyville.
• Work associated with Hart Road improvements at the Flint Creek bridge in Barrington.
Schneider presented the information Wednesday at one of three sessions this week on the proposed $601.5 million overall county budget for fiscal year 2022.
A much larger source of transportation revenue is the Regional Transportation Authority sales tax. Lake County has dedicated its quarter-percent share solely to transportation projects.
In 2022, LCDOT is proposing $34.9 million for 14 projects from that source for its capital program. That's up 12.6% from this year.
"We are expecting a full recovery from COVID numbers," Schneider said.
LCDOT's overall recommended budget is $109 million and includes $24 million for operations.