Editor’s note: On Monday, September 29, 2014, City Administrator Barry Dykhuizen anticipated public questions about the proposed Morrison, IL, 1% Sales Tax Referendum, which will be presented to voters at the Tuesday, November 4, General Election. Whatever questions you find unanswered, know that he is available to discuss them in person at City Hall, 200 W. Main Street, Morrison, or by telephone at 815-772-7657.
Why is this question on the November ballot? The City’s aging infrastructure needs attention, and revenue distribution from the State of Illinois has been declining in recent years. The 1% Sales Tax is an appealing option, because it generates revenue for Morrison’s critical needs from those passing through the Community. Therefore, others that use the City’s infrastructure share in the cost. The burden does not lie solely on residents.
What will Morrison do with this tax revenue? By State Law, the funds must be used for infrastructure improvements, such as Morrison’s roads. The Mayor and each City Council Alderman have made the Street Improvement Plan their top priority. Street renovations would get underway as soon as 2015, with a total estimated cost of $3.5 million.
Editor’s note: These include portions of Winfield, Jackson, Wall, Orange, and Main Streets. See photos below of some of the worst areas, per a Monday, May 12, 2014, City Council display by Fehr-Graham Engineering & Environmental, Rochelle, IL. Shawn Ortigiesen, PE, offered the PowerPoint presentation.
Is the 1% Sales Tax good for the local economy? Reliable infrastructure is critical to retail business, industry, real estate, healthcare, and education.
What does a 1% Sales Tax mean to the consumer? For every dollar you spend on certain purchases, an additional penny would be paid in sales tax.
How much revenue will be generated? Calculations indicate approximately $200,000 per year would aid the City.
Do other communities have this tax? The Sales Tax is extremely common in Illinois. Hundreds of communities use it as a funding mechanism, rather than increasing property taxes. Regionally, Fulton, Rock Falls, Sterling, and Dixon, IL, all have a local Sales Tax to help their communities.
Are certain products exempt from the 1% Sales Tax? Yes. The tax increase will not be applied to many significant purchases. The following will remain at the current sales tax rate:
- grocery items
- prescription drugs, non-prescription medications, and medical appliances
- agricultural equipment/supplies
- titled and registered vehicles and/or equipment.
What are the alternatives? There are three options. Two alternatives are to fund these necessary infrastructure improvements through increased property taxes or continue to increase utility rates. Doing nothing is also an alternative, but it is not the correct option for proper management of the Community’s assets. The first two options put the entire burden on the residents of the Community. The 1% Sales Tax spreads the cost burden to those who live outside City limits, but make purchases in Morrison.
E. Winfield Street at Portland Avenue
E. Wall at S. Jackson Street
N. Orange Street at Union Pacific Railroad crossing
N. Orange Street to Norrish Road
W. Main Street west of N. Orange Street
100 block of E. Main Street
