Motor fuel tax approved for formal vote in Urbana
URBANA – It looks like motorists will start paying a little more to gas up in Urbana starting in October.
Members of the Urbana City Council voted 4-3 to forward a proposed ordinance to the regular council meeting with a recommendation to adopt a 2-cent-per-gallon local motor fuels tax.
If, as expected, the tax is given formal approval next week, it will take effect Oct. 1. The local tax rate of 2 cents per gallon will generate an estimated $340,000 a year.
One condition of the ordinance calls for an automatic escalator of 0.4 cents per gallon each year, unless the city council suspends the increase. The ordinance also allows retailers to retain 1 percent of the local motor fuels tax to pay for their costs in collecting and paying the tax.
Urbana Mayor Laurel Prussing suggested a local gas tax at the time she released the city's budget in April as a way to help pay for street maintenance. The deficit in the city's motor fuels tax fund has been made up from the general fund, she said again Monday.
"This is a very modest proposal." Prussing said. "If you think it is expensive to maintain streets, I would suggest that it is even more expensive to not maintain them."
Opposition to the escalator clause of the plan was voiced by Durl Kruse on Monday. His was the only comment from the audience, but some council members also expressed concern about the escalator clause.
Alderman Charlie Smyth, D-1, said the city needs to "make it clear that these new funds are for maintenance that otherwise would not take place."
Smyth said he would like to somehow separate the new tax revenues from previous revenues and the new street projects and maintenance of existing roads.
He also called for the annual increase to be dedicated to road safety improvements, and for the increase to be automatic for only for three years. At the end of the three years, the tax would be subject to a sunset clause. He said the tax itself would be subject to the regular council review of taxes and fees. There will also be an annual review of the projects and the money, Smyth said.
He said he liked the automatic escalator because the 2-cent-per-gallon tax rate is not enough to cover the city's costs. With the 0.4-cent escalator, it will increase gradually, he said.
Diane Marlin, D-7, said she opposed the escalator clause and favors a strict limit on how the local motor fuel tax would be used.
"I think if we are going to do this, the money should be targeted for maintenance and repair," Marlin said. "That's what I'm hearing from people. These are hard times."
Brandon Bowersox, D-4, said he thinks something needs to be done to cover the costs of road maintenance but said the timing with the economy is a bad time to raise any taxes.
Bowersox, Marlin and Heather Stevenson, R-6, voted against the motion, but Smyth, Robert Lewis, D-3, Dennis Roberts, D-5, and David Gehrig, D-2, voted in favor.
What's sad is Urbana politicians have spent more than their budget once again. A percentage tax increases or decreases but the percentage of money stays the same. Failing to insure that new purchases absorb this decrease when negotiating is what has brought Urbana another tax. Short sighted and irresponsible. Business as usual for the givers of our tax dollars and the recipients of those tax dollars. Now that they've failed to fight for the Urbana citizens the politicians replay their same old ads of we have to maintain this or its more expensive if we don't. Where in that sentence is there any reference to responsible spending and ensuring everyone absorbs their share of a depression? With this kind of logic, philosophy and responsibility anyone can see that no matter what the future brings the citizens of Urbana will continue to be enslaved with more taxes creating lower paying jobs for the majority. Women have always been known for spending too much money even to the point of a divorce. I believe that time is long overdue.
You cant expect these gasbags to care about the citizenry. When the mayor makes coments, like..." We will not lay off any city employees.", it's pretty clear that EL taxpayer will again feel the brunt of these tax increases. I suppose it would be too much to ask for the city to stay on budget like our homeowners do. I"ll take every opportunity I can to NOT PURCHASE any gas in Urbana.
State and local funds are very low and maintaining services for citizens costs money. People who like to complain about taxation often take services provided by the government for granted. How many folks in Champaign have been waiting for the city to repair drainage in their area to prevent flooding and backups? Many people want action by their government to solve such problems but they don't want to pay for it. BTW, ignorant comments like "Women have always been known for spending too much money..." have no place in mature public discourse.
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