DeKALB – A 2-cent increase to the city’s motor fuel tax to provide more revenue for street maintenance was seen a small sacrifice to the DeKalb City Council as it authorized the measure during Monday’s meeting.
With the increase, gas tax revenues are anticipated to generate an additional $300,000 this fiscal year once it becomes effective March 1.
The ordinance was approved by a 6-1 vote with 6th Ward Alderman Mike Verbic voting no. Third Ward Alderman Michael Marquardt, who voted against the proposal in its first reading, was not in attendance.
The proposal was initially for a 1-cent increase during 2018 budget talks, but some council members felt that would not provide enough revenue for street maintenance to be worthwhile. Some members even said their constituents would be OK with a 4- or 5-cent increases.
Several residents voiced their concerns on how the proposal might affect local business or how much of an effect it could make on the roads.
DeKalb resident Dwayne Brown said that since Sycamore stations can sell alcohol, this tax increase would perpetuate the border effect between the two communities. He said that gas tax revenue has often been reverted to other nonstreet projects, such as the construction of the new DeKalb Police Department.
Second Ward Alderman Bill Finucane said road funds being diverted to those types of projects stopped after the state lockbox amendment protecting transportation funds from being used for other purposes went into effect about a year ago.
Council members also disagreed with the idea that there would be a significant loss in business once this increase takes effect.
First Ward Alderman David Jacobson said this would be the most appropriate tax to raise because of the shared community concern of poorly maintained streets and would be less of a burden than the half-cent home-rule sales tax increase proposed during budget discussions. He said that he has never driven past two neighboring gas stations with different prices and seen an overwhelming amount of traffic going into the less expensive station.
DeKalb Mayor Jerry Smith said he is sorry some feel that the proposal would make the purchase of motor fuel prohibitive in DeKalb but pricing fluctuates wherever you go.
“For someone driving looking at prices, gas prices are all over the map,” Smith said. “I was in Dixon and it was 10 cents more than it is here.”
The council also approved the appropriation of nearly $1.5 million of motor fuel tax funds to maintain various streets and highways.