Journal & Topics Media Group

Rolling Meadows Discusses New Revenue Streams


Increased ambulance billing, a natural gas tax and video gaming could soon contribute to Rolling Meadows revenue streams.

Aldermen were expected to discuss all three possibilities Tuesday during their committee of the whole meeting. No action was expected.

For at least 15 years, the city has charged a $600 ambulance fee per trip, for an average annual revenue collection of $500,000.

As some other area municipalities have recently increased their fees, Rolling Meadows staff recommended the city increase the fee to $1,500 per transport for an additional $350,000 in revenue. Arlington Heights also charges this much per transport.

“The funds generated would help the General Fund build fund balance reserves for pensions, road improvements and to hedge against the State of Illinois’ uncertainty in distributing revenues,” said a staff memorandum.

While Rolling Meadows is looking to end its vehicle sticker program, the city will most likely institute another fee in its place — a natural gas tax.

Just before the new year, city council discussed plans to end the vehicle sticker program, which costs most car owners $30 per vehicle and generates an average net revenue of $400,000 for the city annually.

Ald. Nick Budmatz (4th) criticized the program as a time consuming and inefficient way to raise funds, a stance most other city council members agreed with. Issuing stickers and enforcing penalties for expired ones takes up a great deal of staff time, Budmatz said.

If approved, the natural gas tax would be added to residents’ Nicor bills. As each penny per therm (measuring unit of gas) is expected to generate $100,000 in revenue, staff recommended charging $0.04 to $0.05 per therm. Annually, this would cost the average Rolling Meadows household $20 to $50 per year, according to a memorandum from city staff.

Other local municipalities who have a similar tax include Arlington Heights, Des Plaines, Niles, Northfield, Palatine, Park Ridge and Wheeling. Most of these communities also collect an electric utility tax.

For the Rolling Meadows, the natural gas tax would create $400,000 to $500,000 in revenue per year.

Staff recommended the city begin collecting the tax this year, though the vehicle sticker program will still be in place. Like ambulance revenue, natural gas taxes collected in 2018 would be used for city’s pension funds, road improvements and as a safety net for missing or late state funds.

Eventually, the tax would be used as a stable source of income for road projects, staff said.

One final income stream discussed was allowing video gaming terminals to be installed in the city. Wheeling, Prospect Heights and Elk Grove Village are among local towns allowing the terminals.

Staff recommended an ordinance allowing video gaming, saying the machines could help food and beverage sales and aid in economic development.

Rolling Meadows would collect 5 percent of the video gaming revenue.

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