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TO: Mayor Thomas J. Weisner
FROM: Carie Anne Ergo, Chief Management Officer
DATE: November 20, 2015
SUBJECT:
An Ordinance Amending Chapter 44 of the City of Aurora Code of Ordinances to Add a New Article II Entitled "Municipal Motor Fuel Tax".
PURPOSE:
Attached for your consideration is an ordinance proposing the implementation of a Municipal Motor Fuel Tax in the City of Aurora.
BACKGROUND:
Over the past decade, Aurora's gaming tax revenues have declined by more than 50% as the State of Illinois underwent a massive gaming expansion, adding brick and mortar casinos, and approving the use of video gaming terminals statewide. As a result Aurora's gaming tax revenues have declined from nearly $16 annually in 2007 to approximately $7 million next year. Compounding the impact of this reduction is the fact that the State of Illinois has refused to disperse gaming tax revenues to cities since July 1. By the end of the year, Aurora anticipates this loss to exceed $3.5 million.
Historically, city gaming tax revenues were used to fund economic development, community programs, neighborhood street resurfacing and debt abatement. As gaming tax revenues continued to decline, the city began shifting expenditures traditionally funded by gaming taxes to other revenue sources. The residential street resurfacing program, which is funded at
$5-6 million annually, was shifted from the Gaming Tax Fund to Capital Improvement A Fund.
The city responsibly spent down accumulated fund balances in Capital Improvement A during the recessionary period to absorb this additional expenditure, however, this is not a sustainable long-term option. In order to continue to improve neighborhood streets while at the same time maintaining other elements of the city's aging capital and technology infrastructure, it is now necessary to generate additional revenue.
DISCUSSION:
City staff considered a number of options to provide a dedicated revenue source for f...
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