The Peoria City Council endorsed the creation of yet another tax Tuesday night. This time, the tax is on natural gas:
By a 7-2 vote, the council endorsed a “hybrid tax” in which two different assessments will be levied on natural gas users. The first, which will affect residential, commercial and industrial customers, is a 3.5 percent tax on gross receipts resulting in about $33 to $34 more for the typical residential user each year.
The second is a $0.0035 (35 hundredths of a penny) per therm tax on larger consumers who purchase natural gas on the open market.
The tax is expected to generate $2.2 million in 2011, and $2.4 million in years thereafter. The 2011 tax will be assessed on February’s Ameren bills.
So now, during the coldest month of winter, the City is going to start taxing everyone for their natural gas usage. Councilman Eric Turner said (according to the Journal Star), “There is no one around this horseshoe who wanted to do this. (But) we did not have a choice.”
I suppose it’s true enough that the council had no choice but to raise revenue in some way, but that’s not really the whole story, is it? The truth is that the council left itself with no choice because of prior poor decisions.
For instance, there was the Firefly loan guarantee that cost the City over a million dollars. There was the $2.8 million-appraised Kellar Branch rail line that the City gave to the Park District for $1. And the $10 million Sears block that the City gave to Peoria County for another dollar. Let’s not forget the $55 million the City spent to overbuild the Civic Center and the $34 million they’re poised to spend on a hotel to connect to it (this amount includes a developer fee of $9 million).
Some of that money was in assets that could have been sold. Some of it is debt that we are or will soon be paying. And some of it is in cold hard cash. But all of that money is flying out of our pockets due to poor decisions. Now the chickens are coming home to roost, and we suddenly do “not have a choice” but to raise taxes on Peoria residents.
It’s like a guy who spends his paycheck on cigarettes, alcohol, and poker games coming home and telling his wife, “Gee, honey, we have no choice but to pay our bills with the credit card this month.”
No choice, indeed.