VILLA GROVE — The city has generated a quarter of a million dollars to help support emergency services in town, because of a 1 percent sales tax that was incorporated three years ago.
Money for the fire and police departments and the ambulance service contract is included in the town's general fund. The council transferred $150,000 from the sales tax fund into the general fund to reimburse the city for the money already paid out of the general fund for emergency services.
Another $100,000 will be set aside in an interest bearing account to generate more money for future emergency service needs.
The fire department and ambulance service will need to be relocated, when construction begins on a proposed new water plant at the current location of the fire station. Alderman Stan Miller said the money being saved now will help the city with those expenses.
The sales tax revenue was earmarked for emergency service use only, in an effort to keep from increasing property taxes for these services.