Who likes taxes? Business doesn’t like to be taxed. Residents don’t like to be taxed. Nobody likes to be taxed. And Naperville city officials don’t like to add taxes, especially if those city officials are city council members serving two-year terms which includes, lowest incumbent vote-getter, JudyBrodhead, Kevin Coyne, lowest overall vote-getter Kevin Gallaher, and John Krummen.
The City of Naperville has a projected $6.8 million budget deficit for fiscal 2016. The current municipal debt is over $120 million and increasing daily. Unless something is done to get these negative numbers under control, it can threaten the city’s AAA bond rating. The city is currently paying $13 million yearly to reduce its debt level. This is not a good position for the City of Naperville to find itself, and the City of Naperville is us. If the City loses, we lose, if the City benefits, we benefit.
It took City officials over a decade to dig this hole, and as city manager Doug Krieger recently stated, “the way to fill the hole is with cash, and the way to get cash is from rate payers”. Watch and listen to Naperville city manager Doug Krieger:
In other words it’s time for residents, and businesses, and consumers to ante up and fill the hole with cash.
The question is no longer, will the City impose a first-time-ever sales tax. The answer is a resounding ‘yes’. The question is will it be 1/4%, 1/2% or 1%. It’s anticipated that a .25% tax will bring in about $15 million, a .5% tax will bring in about $30 million, and a full 1% tax could see up to $60 million rolling in. That’s a lot of dollars to help fill a huge hole.
Watch and listen as Naperville business owner, and the mayor of Homer Glen, George Yukich shares his thoughts and experience on the benefit of creating a city sales tax:
Homer Glen (near Lockport) has no debt, they save their money for capital purchases, and have no municipal property tax. They don’t spend what they don’t have. It sounds like the same type of advice we give our children. It works.
I am not excited about another tax being inflicted, however since it is going to happen, I say let’s shoot for the stars and go with 1%. If I’m going to the oral surgeon to have a tooth extracted, I don’t want the surgeon taking a fourth out now, another fourth later, and then the final half after that. Let it happen all at once and move on.
It’s a consumption tax. If I don’t consume, I don’t pay. It’s my choice. Whereas most taxes are paid without choice. With those taxes I either pay now, or pay more later with interest, or in fines, penalties, or incarceration.
So now rather than something costing me $1.00, I will be paying $1.01. I can live with that. Plus I get four pennies back in change for my grandsons’ piggy bank.