The Commercial-News, Danville, IL

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November 28, 2009

Aldermen consider sales tax increase

STAFF REPORT

DANVILLE — The Danville City Council will consider financial matters this week:

-- A 1 percent sales tax increase to the current 7.75 percent city sales tax

-- A 1 percent decrease in the current 2 percent food and beverage tax, and

-- An increase in the rental registration fee from $10 to $20, with a $2,000 cap.

But Ward 6 Alderman Steve Nichols may propose more budget cuts — which likely would cut in the police and fire departments — than the proposed $420,000 cuts next year, and propose increasing the sales tax only by one-half percent and decreasing the food and beverage tax by the same.

“I don’t want to support any tax increase,” he said.

Ward 5 Alderman Jerry Askren said aldermen have not seen the $420,000 in proposed budget cuts yet. While most probably won’t like those, more cuts will be worse.

Mayor Scott Eisenhauer said the tax levy and budget plans provide the necessary revenue to meet city service levels that residents demand.

The sales tax and 4.63 percent property tax increases are to cover about a $1.8 million 2010-2011 budget deficit and build up general fund and infrastructure fund reserves with about $1.6 million.

WHAT’S NEXT

The Danville City Council will meet at 6 p.m. Tuesday at the Robert E. Jones Municipal Building, 17 W. Main St.

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