DeKALB – A 2-cent motor fuel tax increase that could generate $360,000 a year for the repair of DeKalb’s underfunded roads might be voted on during the City Council meeting Monday.
The ordinance passed its first reading during the council’s Dec. 11 meeting, but a request to waive its second reading, which would require a two-thirds supermajority, was defeated by the “no” votes of 1st Ward Alderman David Jacobson, 3rd Ward Alderman Michael Marquardt and 6th Ward Alderman Mike Verbic.
Local gas station owners have been largely against the proposal and are worried that motorists will drive to a station in a neighboring town – Sycamore, for instance – to get a better deal.
The local motor fuel tax rate currently is 3.5 cents a gallon for streets and the needs of the DeKalb Taylor Municipal Airport. Since collections at the new rate of 5.5 cents a gallon are proposed to begin March 1, the estimated revenue for fiscal 2018 will be for about $300,000.
During the previous fiscal year, the city devoted about $300,000 to fund about 80 percent of the city’s roads. The remaining 20 percent of streets fall within the city’s two tax increment financing districts and were funded by $1 million in TIF dollars.
Should the ordinance be approved, more than $2 million will be devoted to street maintenance, $1.5 million of which would go toward non-TIF roads.
The council will meet at 6 p.m. in the council chambers of the DeKalb Municipal Building, 200 S. Fourth St.