City council addresses tax hike options

By Shivangi Potdar

DeKalb City Council held a special meeting at 6 p.m. Monday for residents’ input on the fiscal year 2004 budget.

“The city’s only answer to the sluggish economy is to raise taxes and not curb spending,” DeKalb resident John Anderson said. “Once it’s incorporated, you have it for life. It’s just like a cancer; it keeps eating away at society.”

Anderson said when he was a boy, the tax was 1 cent on a 99-cent purchase and it has only been growing from there.

Second Ward Alderman Kris Povlsen backed the idea of a sunset clause to revisit the tax hikes in two years, as suggested by the residents.

He was in favor of the 2-cent increase in the gasoline tax and a 1 percent increase in restaurant and bar tax.

Povlsen was against mandatory vehicle stickers that would generate additional revenue as he said it would be an “administrative nightmare.”

“The gasoline tax is something we should do more immediately as we can put it into place right away,” said 3rd Ward Alderman Steve Kapitan.

He didn’t support the restaurant and bar tax, as he said it was already at 9 percent.

“A lot of people end up having to eat out [due to] time pressures,” Kapitan said.

Fifth Ward Alderman Pat Conboy said he was opposed to funding the total debt and was wary of the sunset clause.

“It’s second nature for people in power to say we need the money, become accustomed to it and it’ll become a sunrise clause,” Conboy said.

A former advocate of the restaurant and bar tax, he opposed it saying the restaurants already are paying 2 percent more than the rest of the retailers.

Some of the aldermen supported a partial increase in taxes. Sixth Ward Alderman Dave Baker supported a 1-cent increase in gasoline tax. Conboy and 7th Ward Alderman James Barr supported a quarter-percent increase in sales tax instead of a half percent.

Baker suggested selling signage on the Harvestore Drive water tower, vehicle stickers, selling city property and increasing the tobacco tax.

Barr said he would support the sales tax increase only with the caveat that in six months the property tax of the city will be decreased from 63 cents to 55 cents to provide a tax break for the residents. This could cost the city another $200,000.

“We’re at the mercy of two different levels of government,” Mayor Greg Sparrow said. “Local government is where the buck stops. The half-percent sales tax gives us the best opportunity to become more self sufficient.”

At the city council meeting that followed, the Garden Road parking issue finally was resolved.

On July 16, four aldermen met with student representatives from NIU and residents of Garden Road to discuss the issue and came up with a solution.

The council passed an ordinance designating Garden Road as a no-parking tow zone with the exception of north of Barsema Hall to Hillcrest Drive and south of College View to Barsema Hall. These areas will be no-parking zones from 2 a.m. to 9 a.m. Monday through Friday except legal holidays.

Barr said the new law will be reviewed before the start of the spring semester, in early November.

Baker said flyers will be handed out to educate the students about the parking changes.

Adam Novotney, SA director of governmental affairs, said no-parking and tow-zone signs will be posted and the actual towing will be enforced by a towing company to relieve the police of the burden of issuing tickets.

The council also passed a resolution approving the distribution of Tax Increment Funds to city agencies like the park district, school district, sanitary district and library.