Road funding controversial: proposal to raise the city sales tax by 1 percent

By TONY GRAF, 29 May 2010, LOCKPORT -- Denise Marynowski understands the need for a comprehensive program to fix Lockport's city streets.

However, she opposes the current tax-increase proposal that would fund such a program.

The city council is set to vote Wednesday night on that proposal, which would increase the telecommunications tax and create a municipal tax on electric and gas utilities.

Marynowski has another idea for funding the roadwork. She wants the city to hold a referendum, where voters can decide on a proposal to raise the city sales tax by 1 percent.

With a sales-tax increase, Lockport residents would benefit from out-of-town customers at local businesses, Marynowski said.

This week, Marynowski invited The Herald-News to hear her opinion on the matter -- as well as opinions from four dozen of her neighbors at the Lago Vista subdivision in Lockport.

Almost all of these residents, attending a meeting in the subdivision's clubhouse, agreed with Marynowski's sales tax idea and opposed the utility-telecom proposal.


Vocal resident

Marynowski has attended several city meetings and addressed the council. She has taken a hard look at the issue and kept her neighbors up to date.

The city staff's proposal for funding roadwork involves two tax strategies:

- Raise the city's telecommunications tax from 1 percent to 6 percent.
- Establish a new 5 percent municipal tax on electric and gas utilities.

The money would support a 10-year capital improvement program for roads. Around $1.8 million would be spent on roadwork each year.

Marynowski supports road improvements, but opposes the telecommunications and utility tax proposal.

"It seems to me like an unfair burden on just the residents of Lockport," she said.

"I agree that some of the streets here are a mess, and the past councils haven't bothered to do anything about it," she said. "But it should be put as a sales-tax increase, to be a little more fair -- so that the people who come into Lockport, driving on our roads, can also contribute a little bit."

Marynowski said the city staff's proposal presents a burden on Lockport residents when rate increases are being proposed for water and sewer services.

The city council voted in April to recommend rate increases for the city and for the Lockport Heights and Bonnie Brae sanitary districts, which Lockport manages under an intergovernmental agreement.

Marynowski said the water and sewer proposal would increase her bill by $300 a year, and the roadwork proposal would increase her taxes by $270 a year.


Neighbors speak out

On Monday, dozens of Lago Vista residents gathered at the subdivision's clubhouse to make their opinions known.

Joan Sinadinos said: "I would be in favor of the 1 percent sales tax. It's not going to hit you so hard. And also, if you shop in Cook County, you're used to a higher sales tax, anyway."

Darlene Rusch said the sales tax idea "seems the lesser of two evils. I think the utility tax should be called a mean tax. Because when you're taxing people who heat their homes, cool their homes, cook their meals -- these are the necessities of life. That just doesn't seem to be a very good way to tax people."

Bob Loewe mentioned Mayor Dev Trivedi's historical analysis of the road issue: Trivedi has said past city councils discussed and attempted to fund a road-improvement program, but did not follow up on it.

Now that the roads have deteriorated and need work, Loewe supports the sales tax idea.

"Let some of the outsiders come in and help pay for it, so we're not consistently penalized for a city that over the years has just not followed up with the plans to improve the roads," Loewe said.

Joanne Pitulla has attended meetings on the issue. "I respect the sincerity and the hard work of the mayor and the council. I know they're genuinely concerned with it," she said.

But she opposes the utility-telecom tax idea because "these are essential services, and I think it's very poor public policy to have these huge increases in essential services."


Wednesday night

Marynowski said she is willing to get behind a referendum push for the sales tax idea, if the council chooses that direction.

Since the roadwork item is on Wednesday's agenda, the public may address the council on the issue at the beginning of the meeting.

The council meets at 7 p.m. Wednesday in the third-floor chambers of the Central Square building, 222 E. Ninth St.