Libertyville Extends Some Utility Taxes, Rolls Back Natural Gas Tax

Libertyville trustees approved extending the sunset clause on some utility taxes to April 20, 2013, but reduced natural gas utility tax at a recent Village Board meeting.

“One of the primary reasons to put in a sunset clause was this was our safety, this was what we were able to enact to prevent us from going into default,” Trustee Richard Moras said during the meeting. “It’s important that we reset this safety so that if we find ourselves in another economic downtown that we have the ability to save ourselves once again.”

The simplified municipal telecommunications tax will remain at 6 percent. The electric utility tax, based on a per kilowatt-hour electric use, will remain at 5 percent.

The taxes are two of three additional revenue sources the Village Board approved in 2009 to replace the reduction in sales tax and other revenues. These taxes had been set to expire April 30, 2012.

Village sales tax revenue has improved slightly over last year, but state income tax revenues continue to decrease, which is why officials recommended extending the two taxes.

The third revenue source, the natural gas utility tax, was reduced to 2 percent due to a slightly better financial outlook for the 2012-13. In December 2011, the natural gas tax was reduced to 4 percent from the 5 percent approved in the 2009 ordinance.

Since the taxes were enacted, the village has restructured outstanding bonds and reduced its annual debt payments by about $1 million annually for the next four years, according to village documents.