Joliet hearing Tuesday on budget with hike in gas taxes, property tax rate

The Joliet City Council on Tuesday will hold public hearings on a budget that includes higher gas taxes and a levy with an uptick in the city’s property tax rate.

The budget and tax levy also are on the agenda for a council workshop meeting at 5:30 p.m. Monday. The Tuesday meeting is at 6:30 p.m.

Council members did not object when told earlier this month by Finance Director Kevin Sing that the proposed budget includes increases in the city fuel tax.

The local tax on gas for passenger vehicles would go from 4 cents to 5 cents. The tax on diesel fuel would go from 4 cents to 11 cents.

The city property tax levy will increase about 6.5%, generating an additional $3 million.

All but 1% of that levy increase will be covered by new development, Sing said.

The other 1% will be paid by current property owners.

That means a Joliet property owner could see the city share of property taxes go up by 1%, assuming the assessment stays the same.

The city property tax rate will nudge up from less than 1% this year to a fraction over 1% next year.

The entire city budget proposed for 2025 is $662 million, up from $643 million.

The city’s general fund, which covers most day-to-day expenses, would increase from $221 million this year to $236 million in 2025.

Items in the budget include:

• 29 new city employees, including 14 police officers and eight positions in the fire department

• About $18 million for city roads and sidewalks

• $18 million for the downtown city square and Chicago Street improvement project

• $1.1 million for maintenance and upgrades at Slammers Stadium

• $1.6 million for repairs at the Ottawa Street parking deck

• $3.6 million for 38 new city vehicles

Sing said all revenue collected from the proposed hike in the city fuel tax would be used to pay for new city vehicles. The city already uses 3 cents out of the current 4-cent local gas tax to pay for city vehicles.

“We have over 750 vehicles and pieces of equipment in our fleet,” Sing told the council at its Nov. 19 meeting.

Most of the city budget beyond the general fund goes to the water and sewer fund, which is primarily funded by water and sewer rates.

Much of the water and sewer fund will be used to pay for an ongoing water main replacement program, which will cost $101 million in 2025, with 30 miles of new water mains being built.

The city also will fund $22.7 million in system improvements to prepare for the switch from underground wells to Lake Michigan water in 2030. Another $28.7 million will be spent on engineering for the Lake Michigan project.