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TO: Mayor Richard C. Irvin
FROM: Stacey Hamling, Interim Chief Financial Officer
Alex Alexandrou, Chief Management Officer
DATE: November 29, 2017
SUBJECT:
An ordinance amending Chapter 44 of the City of Aurora Code of Ordinances entitled "Taxation" (Municipal Gas Use Tax).
PURPOSE:
Attached for your consideration is an ordinance proposing a scaled increase in the city's Municipal Gas Use Tax.
BACKGROUND:
The City Council adopted a municipal gas use tax in 1997 at the rate of one (1) cent per therm (O97-108). The tax has not been adjusted since the initial implementation.
DISCUSSION:
The preparation of the 2018 budget was accompanied by new challenges, driven largely by the loss of approximately $3 million dollars due to state mandates. The Local Government Distributive Fund (LGDF) and the Personal Property Replacement Tax (PPRT) saw significant reductions in addition to a new two (2) percent administrative fee on sales tax collection.
The attached ordinance proposes a scaled increase of one (1) cent in 2018 and one (1) cent in 2019. The chart below illustrates the increase.
|
2017 |
0.01 per therm |
|
2018 |
0.02 per therm |
|
2019 |
0.03 per therm |
The proposed rate change will not impact Resolution R98-51 (attached), which established a Municipal Utility Tax Rebate (Electric and Natural Gas Use) for senior citizens and persons with a disability. The rebate process will remain the same.
IMPACT STATEMENT:
The proposed increase, if accepted to account for the loss of revenue created by the State. The increase is scaled to minimize the impact on residents
RECOMMENDATIONS:
It is respectfully requested that the Finance Committee forward this to the Tuesday, December 5, 2017 Committee of the Whole meeting.
cc: Alderman O’Connor, Chairman
Alderman Mesiacos
Alderman Bugg
Alderman Mervine, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Amending Chapter 44, Article V, Section 44-63 of the Code of Ordinances of the City of Aurora Entitled "Taxation" (Municipal Gas Use Tax).
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, pursuant to the City’s home rule authority, it is necessary and desirable for the City of Aurora to amend its ordinances regarding taxation by increasing the municipal gas use tax.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That Section 44-63 of the Code of Ordinances of the City of Aurora is amended by adding Section 44-63(f) to read as follows:
"(f) Effective January 1, 2018, the tax imposed by Section 44-63(a) of this Code shall be two (2) cents per therm. Effective January 1, 2019, the tax imposed by Section 44-63(a) of this Code shall be three (3) cents per therm."
SECTION 2: That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form as provided by law.
PASSED by the City Council of the City of Aurora, Illinois, on .
AYES ____ NAYS ____ ABSENT ____ NOT VOTING ____
APPROVED AND SIGNED by the Mayor of the City of Aurora, Illinois, on _______________________.
______________________________
Mayor
ATTEST:
_______________________________
City Clerk