Normal is considering creating a local gas tax to help generate more revenue. (Photo courtesy Flickr/MikeMozart)

By Adam Studzinski

NORMAL – A lack in sales tax revenue is prompting the Town of Normal to propose a new local gas tax and increase in garbage collection fees.

City manager Mark Peterson said staff is recommending a $.04 per gallon local gas tax, similar to what Bloomington implemented last year. He added despite Bloomington's local fuel tax he's noticed little, if any, difference in gas prices.

"We really don't think this will change overall gas prices," said Peterson. "It does provide us with a nice revenue source that we can then use for street repair, and street maintenance, and those kinds of things."

The gas tax would create an estimated $600,000 in funding for the town.

Meanwhile, Peterson said they're also proposing to raise garbage fees from $12 to $18 per month.

"As we have surveyed other communities, $18 a month for the service level that we provide is still a bargain. It is still very, very inexpensive compared relative to what we've seen in other communities based upon our service level," he said.

Raising garbage fees would create about $757,500 in revenue.

Peterson explained sales tax makes up the most significant part of revenue in the town's general fund.

"We've seen the growth in sales tax really moderate the last 24 months," said Peterson. "It's gotten a little bit better the last couple of months and we think there will still be a little growth, but we've really slowed down."

Peterson added a drop in employment is likely one factor hurting sales tax proceeds.

"That means there's fewer consumers out there," he said.

Peterson said the overall budget is a "status quo" budget with no new full-time employees or significant new programs.

Adam Studzinski can be reached at [email protected].