Chicago Daily Herald
Kate Grusich Daily Herald Staff Writer
December 12, 2000
Providing some New Year's cheer to Wauconda residents, Mayor Jim Eschenbauch is calling for a repeal next month on the village's 5 percent utility tax.
The tax was implemented nearly four years ago to generate revenue to fund repairs to the village's old, leaky sanitary sewer system. Eschenbauch pledged to lift the tax when the money was no longer needed.
Now that the village has a signed an Illinois Environmental Protection Agency consent decree accepting final sewer repairs, the board has decided to vote in January on an ordinance lifting the tax.
"The first item on the agenda for the new year is an ordinance to get rid of the utility tax," Eschenbauch said. "That will be the end of it."
Village treasurer Cheryl Adams said the tax, imposed on utilities that provide telecommunications, natural gas and electricity, pulled in an estimated $500,000 a year.
Added to money already set aside by the village, utility tax revenue helped cover the cost of the nearly $9 million repair project.
Eschenbauch said the upgrades and repairs ran smoothly, thanks to the patience and assistance of the village residents and the state environmental agency.
"We saved a lot of money with this tax, rather than having a general obligation bond and paying interest for the next 10 years," he said. "Now there's only about a year and a half of repair left and no more cost. We have enough money set aside."
Village officials are now tallying up numbers to find the exact amount of money generated by the tax.
While the ordinance is expected to be voted on at the Jan. 2 meeting, Village Attorney Rudy Magna said the utility companies might need a little more transition time before removing the tax.
"There will probably be about a 90-day lag time after the ordinance goes into effect," he said. "So residents shouldn't be surprised if they get a bill in January with the tax still on it. It takes a while for the companies to update their records and remove the bill."
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