St. Charles Considers 2-Cent Gas Tax Hike

ST. CHARLES, IL — A gap in St. Charles' project funding has city officials considering ways to raise extra revenue rather than dipping into the reserves, according to reports. One potential solution, a 2-cent gas tax, would more than cover the gap.

The Daily Herald reported city officials as saying the gas tax is a necessary fix in order to balance next fiscal year's budget, starting May 1. If the gas tax is passed, officials estimate, the city will see between $425,000 and $500,000 more annually, more than covering the $212,000 gap in the budget.

Finance Director Chris Minick said the tax would be a reliable source of revenue designated for road maintenance and construction, the Herald reported. Alderman Ron Silkaitis said that may not be enough to cover increasing expenses.

"I wouldn't mind doing more research," Silkaitis said, according to the Herald. Alderman voted Monday to reconsider the proposal in June, the Herald reported, with a 6-2 vote.

Officials will look at other possible sources of revenue, such as the city council raising the property tax levy, which has been frozen at around $12 million for nine years, according to the Herald.

"To me, it's one or the other," Alderman Steve Gaugel said, the Herald reported. "I don't think we can do both."

Similar tax increases were approved lately in Plainfield and Oswego.

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