The Champaign City Council voted 8-1 on passing the bill to increase the rate of city’s home-rule sales tax to 1.50%, which is 0.25% more than Urbana, to maintain the library service, as well as help funding the police and fire department at its meeting Tuesday.
The state of Illinois explains that home-rule sales tax is “a tax upon all persons who are in the business of selling tangible personal property at retail in their jurisdiction.”
These funds will go to the police patrol staffing and overtime, fire department overtime to operate the second company at station four and library operations. The rate increase will provide $688,068 in order to restore six police officer positions. $45,000 in patrol overtime and $461,490 in recurring service levels for the second company at fire station #4 will also be acquired. $500,000 in maintaining the current Champaign Public Library service will be funded by the increase.
According to the city’s report, the home-rule sales tax increase will prevent the most regressive taxes such as utility taxes from being raised.
Thomas Bruno, deputy mayor, said that it is always painful to raise taxes. He said he has been receiving emails and phone calls from local, small business people regarding this issue. Although some people disagree, he said it is better to increase the tax than cut off the budget from other departments.
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He said it is true that the government should live within its means, but these days, there are many more factors involved. He said the costs for many things have gone up and increasing the revenue is one of the most effective way to address issues.
“Living within our means would mean that we ignore thoroughly when buildings start to leak,” Bruno said. “I think it’s time to figure out ways to start repairing some of that damage.”
Bruno said it’s time to start repairing infrastructure, as well as restore their short staff. He thinks the people in each generation should pay for their own needs.
“Nobody wants to pay more money to the government,” Bruno said. “But we have different needs to take care of.”
Council member Marci Dodds, district 4, agreed that increasing the city’s revenue is a way to solve the problem. She said that in the past few years, the city has cut off the possible budget, and now there is no other way.
“Champaign finance had been well and conservative with manage, and we have made the hard decisions all the way long,” Dodds said.
Council member Will Kyles, district 1, said the city council had thought carefully about all taxes in the city, and the tax increase is the best solution to the problem.
“It’s for the quality of life of all citizens,” Kyles said.
The new home-rule sales tax rate will be effective starting from January 1, 2014.
Earn can be reached at [email protected].