Galesburg aldermen voted 4-to-2 in favor of implementing a new tax on gas and electric utilities for residents and businesses.
Aldermen Corine Andersen, Peter Schwartzman, Wayne Allen, and Jeremy Karlin voted in favor of the plan, while Angela Bastian and Russell Fleming voted against it. Alderman Wayne Dennis was not at the meeting.
Gas will be taxed at 5%, while electricity will be taxed on a tiered system that decreases with higher usage. The city estimates the tax will raise around $2.35 million annually. The revenue is intended for capital projects and infrastructure improvements throughout the city.
During this week's city council meeting, City Manager Todd Thompson said aldermen will ultimately decide what projects and improvements to fund.
Mayor John Pritchard said the tax would cost him several thousand dollars more personally, but he believes it's worth it.
“I think it’s an investment in the basic streets and sidewalks and roads which all the public use. When visitors come here, they’ll see that. And I think it’s part of the things that we ought to be doing anyway,” Pritchard said.
Schwartzman said after the meeting that his "yes" vote came with reservations.
“There are many people in our community (for whom) energy costs are a major issue. They spend a disproportionate amount of their monthly income on keeping warm in the winter. And I think we want to make sure every one of them is warm in our cold, frigid winters,” Schwartzman said.
Schwartzman said ideas to lessen the impact on low-income residents are already being proposed. He said they include educational courses about home energy efficiency and training programs to assist in weather-proofing older homes.
