Libertyville To Reduce Natural Gas Tax to 4%

Libertyville trustees unanimously approved reducing the natural gas tax from 5 percent to 4 percent in response to improving finances in the village.

The tax, one of three instituted in 2009 to offset a significant reduction in village sales tax revenues, generated $500,000 for fiscal 2012. The temporary taxes originally were set to expire Dec. 31, 2010, however they later were extended to April 30, 2012. Trustee Richard Moras, who also chairs the Finance Committee, recommended reducing the natural gas tax “as soon as practical.”

“We were in quite dire straits economically given the reduction in sales tax revenues from the auto dealers, and it was something we had to do,” Moras said during a recent Village Board meeting. “As we look at our five-year plan that we reviewed in a previous meeting, we have some breathing room at this point in time.”

Trustee Jay Justice agreed and said that reducing the natural gas tax by a full percentage point is a correct move.

Some Libertyville firefighters, however, disagree.

“I’m speaking on behalf of our membership and we believe it is not necessarily a good idea to reduce village revenues at this time,” said Mike Hall, president of the Libertyville Professional Firefighters Association Local 3892.

Mike Stanek, treasurer of the Libertyville Professional Firefighters Association Local 3892, says the association would like the village to reinvest the tax revenues into the village.

“It could be used to fund another firefighter and help alleviate stress when the fire department receives multiple calls,” Stanek said.

Hall says even though the village’s financial picture is improving, some departments still are feeling squeezed.

“Even though we are headed in the right direction and we see the light at the end of the tunnel, I know that most of the departments — police, fire — most of them are still at an all-time low in terms of staffing at this point,” Hall said. “So I kind of have a hard time supporting reducing village revenues at this time.”