Galesburg Council discussed the home rule sales tax increase on Monday that would increase revenue by about $950,000 annually.
City Manager Gerald Smith says this is a means to funding infrastructure improvements and a portion of a community center, possibly in the form of issuing bonds and paying off the bonds with the new revenue.
Smith says this is not an uncommon strategy for fixing capital infrastructure adding many city roads that have gone years without significant improvements.
Right now about $400,000 annually is earmarked for capital projects.
Alderman Bradley Hix says he’s worried that borrowing or taking out bonds would be too costly because of high-interest rates.
Alderwoman Jaclyn Smith-Esters asked if it was possible to reduce the food and beverage tax by .25%.
Finance Director Gloria Osborne says that would impact the General Fund by about $200,000, and because public safety is funded out of the general fund, Osborne says she wouldn’t recommend that.
Mayor Peter Schwartzman says the sales tax is a way to tackle infrastructure and a community center without dipping into the General Fund.
Wayne Dennis says that the residents made clear in a survey that roads were a greater priority than a community center.
Public Works Director Wayne Carl says over 20 years if the current level of funding is maintained, the city would be about $55 million short to maintain the quality of roads we have now.
It appears the Council will vote on putting the sales tax increase to residents in the form of a ballot question in the April 2023 elections.
Three aldermen need to support a measure to bring it to the agenda, and Aldermen Cox, Hix, and Dennis said they would.
Aldermen only had the tax increase on first reading and will vote on the matter on Dec. 19th
