COVID-19 effect: Decrease in motor fuel tax revenue to affect McHenry County road repair programs

With people driving less under the state’s stay-at-home order, revenues from the motor fuel tax are decreasing, making some local cities in McHenry County concerned about delays to road repair programs.

In January, Woodstock imposed a 3-cent gas tax to help repair its crumbling streets. The average road in Woodstock is in poor condition, reported engineering firm Hampton Lenzini and Renwick Inc. Road repairs needed “aggressive” action, Woodstock Mayor Brian Sager said in a previous meeting.

Issuing a $10 million bond, and investing $2.5 million each year over five years was a major stride to repair roads in Woodstock. But the city might be falling behind on plans. City officials expected to begin construction May 1 and aimed to rehabilitate 20% of the roads by 2020.

“We’ve definitely talked about what the council and staff and staff are aware of and they will adjust it as needed. If we have to as far as how much of the bonding amount we actually get and use,” said Mike Turner, deputy mayor of Woodstock.

Woodstock last week awarded an $8.6 million contract to Plote Construction after soliciting bids. Woodstock still is undergoing construction from last year and is expected to begin new construction from the increased gas tax in the next few weeks, Turner said.

Turner said that as a result of fewer people driving, interest rates, material and petroleum costs are lower.

“That will have an impact of making the making more funds available at a lower interest rate and stretching how far the money goes in doing the roads,” he said.

Oil and gas prices already were falling before the pandemic due to plummeting demand. But when the virus hit, “the price really collapsed,” said U.S. Rep. Sean Casten, D-Downers Grove.

“Since the beginning of March, total gasoline demand fell almost 50% in the U.S., and has rebounded a bit at about 70% of where it was,” Casten said.

The city of Woodstock will discuss the issue in future City Council meetings.

“The road program and what we’re considering for the future because there’s still additional need, will absolutely continue to be one of the top priorities of both the current council and future,” Turner said.

Other cities are facing similar concerns over infrastructure but it’s still too early to determine the actual impact on city road projects, McHenry Mayor Wayne Jett said.

However, the city of McHenry does expect a 15% decrease in revenues from the motor fuel tax for road repair.

“I looked at how this revenue affected us in 2008 and it was definitely different times but the motor fuel tax didn’t take as big a hit as others. We will have to see what type of impact this really has on us in the upcoming months,” Jett said.

Although the decrease in revenue will affect larger road programs, Jett said, McHenry doesn’t expect to have issues with minor patching work.

McHenry last year spent about $2 million on the city road resurfacing program and projects on Curran Road and Pearl Street.

“There is a huge need in our community and others as it pertains to infrastructure needs,” Jett said.

Turner said he hopes the guidance from the governor’s office will be different than currently exists in McHenry County.

“I’m hopeful that we’re able to pull out of this as a city and state sooner rather than later,” he said.