The DeKalb City Council voted on its initial acceptance to increase the city’s sales tax and create a gas tax after a lengthy, and at times heated, series of public comments.

During the March 10 regular meeting, council members voted unanimously to create a two cents per gallon motor fuel tax.

Voting on the increase in sales tax, from 7.5 percent to 8 percent, was more divisive. Sixth Ward Alderman Dave Baker voted against the ordinance after his proposal for a more modest increase of .25 percent failed to gain support from other council members.

Baker’s comments reflected the worries DeKalb citizens and business owners and managers expressed before the vote took place.

Celeste Cullivan, manager of Lowe’s Home Improvement in DeKalb, was one of the residents who spoke against the increase, saying the higher tax increase would turn shoppers away from DeKalb businesses, lessening any increase in revenue the city hopes to see.

“My major competitor is in Sycamore,” Cullivan said. “You’re asking your local businesses to take on the burden.”

Other councilmen, including Bertrand Simpson (Ward 1) and Kris Povlsen (Ward 2), responded to public concerns by stating their dislike of any tax increase. However, Povlsen repeated the hopes he expressed at an earlier meeting, saying he thinks the city has a good plan to stay within the budget created.

Simpson responded to citizen comments accusing the city of “crisis budgeting” made by Herb Rubin, who supports the tax raise but expressed concern over the budgeting process.

“I’ll accept the need for more taxes,” Rubin said, adding that problems such as “crisis budgeting” needed solutions.

Simpson, citing flooding in fall 2007 and higher-than-expected snowfall this year, said if DeKalb does not manage crises when necessary, the town would be unable to function. Accepting the tax increase does not mean he is pleased about it.

“Let’s be clear on this folks,” Simpson said “No one on this dais embraced this tax increase.”

The two taxes voted on are part of the city’s response, including a hiring freeze and five-day furloughs for all city employees, to ongoing budget woes that led to threats of layoffs. A strong, persistent American Federation of State, County and Municipal Employees (AFSCME) presence over the past two months at council meetings led the city to further negotiations with AFSCME, scrapping of the 20 planned layoffs after five workers voluntarily retired and five open positions were eliminated through attrition.

A second reading of the tax-increase ordinance will take place during the March 24 council meeting.

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