cover
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...
Click here for full text