Gillett city officials will review revenue-generating suggestions provided by residents at a public meeting Thursday before acting on a $20 wheel tax to raise funds for street repair and maintenance.
Residents recommended the city charge ATV users and snowmobilers a parking fee at Zippel Park where they park their trailers, collect a “ton tax” from truckers driving on city streets and delineate truck routes to restrict travel on side streets.
At a finance and personnel committee meeting that followed the public meeting, committee members agreed to delay action on a wheel tax until these alternatives and other suggestions could be studied. The committee meets again at 5:30 p.m. Thursday, Dec. 18.
The council proposed the wheel tax as a way to generate revenue for a list of costly street updates.
A proposal to totally redo First Street would cost an estimated $1 million. Work on East Main Street is also estimated to cost $1 million, although the county would share the expense.
The Department of Transportation proposal to update state Highway 22 in the city in 2023 would require the city to replace the infrastructure under the highway and cover the expenses associated with parking lanes. In today’s dollars, that would cost the city $150,000-$200,000, according to the city’s projections, although the cost will likely increase over the next nine years.
In addition, replacement of an aging box culvert on Washington Street is estimated to cost $500,000.
Mayor Irene Drake said people don’t realize the expense associated with street projects, which she estimated at $300 per foot for total reconstruction and new infrastructure.
“You start looking at all the miles of streets we have, and it adds up,” she said.
“We’re trying to move the city forward,” said Alderperson Terry Nelson. “It takes money to move the city forward.”
“I can assure you, it’s not an easy decision to make,” Drake said. “We’re trying to come up with the least painful way to do this.”
The tax would be charged to owners of vehicles registered in the city, including cars, vans, SUVs and trucks up to 8,000 pounds gross weight. Motorcycles are exempt. The tax is projected to raise about $38,000 annually, based on the estimate of 1,900 registered vehicles in the city.
Nelson said a wheel tax will be assessed to homeowners and renters, not solely to homeowners, some who are elderly and on fixed incomes. The city sends out 700 property tax bills annually.
If enacted, the wheel tax would be in effect for as long as the council desires. Nelson estimated the tax will remain for at least 10 years, in order for the city to “do projects that need to be done.”
Resident Howard Smith opposed the tax, saying the city should charge Zippel Park fees instead.
“Most of the people are on a fixed income. Now you’re going to add another $20 or $40. Why charge that?” he said.
Resident Owen Farrell agreed.
“We’re looking at another tax on the people in the community. They don’t need it. They don’t want it,” he said. “We can cut some of the fat in the city and get by with a lot less.”
Drake responded by saying the city has strict levy limits that control the amount of taxes it can collect, and taxes have remained the same for the past few years. She invited residents to review the 2015 proposed budget and attend a budget hearing at 6 p.m. Dec. 1 at City Hall.
“We have to run the city. We have to have money to keep it going,” said Alderperson Debbie Erickson.
Resident and business owner John Baumgartner said street improvements would improve the city’s appearance for visitors.
“I think we need to do something,” Baumgartner said. “If you want to make the city grow, if you want to make it go ahead, you have to make it presentable to people.”
“It’s a $1.66 a month — a cup of coffee,” Drake said.
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