Glen Ellyn Food And Beverage Tax Meetings Complete; Workshop Next

GLEN ELLYN, IL — Glen Ellyn officials just wrapped its third and final public meeting about a proposed 1.5% food and beverage tax. The meetings, attended by dozens of residents, covered everything from why the village feels it needs a food and beverage tax to how the food and beverage tax will roll out if it gets a green light from board members.

The village's main impetus behind proposing the food and beverage tax involves funding ongoing capital projects and street improvements that village officials say are now underfunded.

According to information presented at the food and beverage tax meetings, Glen Ellyn had been funding a 20-year referendum on street projects on a pay-as-you-go basis. The village is hoping to use a food and beverage tax, in part, to keep funding the referendum, which was approved in 2000.

On the topic of capital projects, the meeting's presentation focused on the Taylor Street pedestrian underpass project and the newly revamped police station, which had a price tag of $13.5 million. According to information presented at the food and beverage tax meeting, Glen Ellyn's current five-year capital project plan reflects a 5-year deficit.

Officials said the food and beverage tax could benefit additional capital projects that they project are coming up short. Below is a roundup of these projects and the village's estimates of how much additional funding is needed to complete each one:

• Taylor Street underpass (up to $5 million additional funding needed)
• Glen Ellyn Civic Center parking garage (up to $15 million additional funding needed)
• Central business district streetscape work (up to $4 million additional funding needed)
• Improvements on Roosevelt Road ($500,000 additional funding needed)
• Renovations to Glen Ellyn Civic Center ($1.4 million additional funding needed)

Currently, these capital projects are primarily funded by property taxes, utility taxes, and real estate transfer taxes, with the remainder being provided by by grants and miscellaneous revenue.

Village officials said a food and beverage tax levy would prevent an increase in property taxes and make up for a decline in utility tax revenue. Another benefit of the proposed tax, they assert, is that it will apply to non-residents dining in Glen Ellyn instead of placing the tax burden solely on residents.

If implemented, the proposed food and beverage tax would add a 1.5% tax to:

• Food and drinks (alcoholic and non-alcoholic) purchased at restaurants, coffee shops, bars
• Pre-packaged alcohol sold in stores

Officials say it would not impact food items sold at non-profit establishments, such as hospitals, or common grocery items.

At the meetings, Glen Ellyn officials offered some proposed alternatives to the 1.5% food and beverage tax and noted that without any additional taxes, new projects would be tabled and current projects would be "revisited."

Alternative funding options include:

• New .75% food and beverage tax and .25% home rule sales tax increase
• A .5% home rule sales tax increase

The next step in the food and beverage tax approval process is an Aug. 27 Glen Ellyn village board workshop that is open to the public. After that, the ordinance will be up for a first reading on Sept. 10 and a second reading and adoption on Sept. 24.

If approved, the food and beverage tax will take effect starting March 2019.

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