Council Closes Loophole in Gas Utility Tax

was virtually equalized throughout Highland Park and the between Highway 41 and the Deerfield village limits was delayed Monday by the City Council. 

The council voted 6-1 to closed a loophole that enabled citizens purchasing natural gas from an out-of-state source for delivery by North Shore Gas to avoid paying the city’s 5 percent tax. 

Mayor Mike Belsky was joined by council members Nancy Rotering, Scott Levenfeld, Jim Kirsch, Larry Silberman and Terri Olian in approving the measure. Councilman Steve Mandel was the lone dissenting vote. 

When members of the, 1506 Half Day Rd., objected to the proposed widening of the roadway, the City Council gave its provisional approval to a contract with the Illinois Department of Transportation (IDOT). The deal is contingent on a resolution of differences between IDOT and the church. If no agreement is reached by April 30, the ratification expires. 

The 6-1 vote had the same lineup as the gas tax, again with Mandel as the only opponent. The council delayed its vote on the project two weeks ago to give residents an opportunity to voice their concerns. IDOT was also required to appear and answer questions. 

The project will widen Half Day Road to four lanes, with a landscaped median preventing a left turn in and out of the church’s parking lot and in and out of Mavor Lane. Drivers will have to make a U-turn at Highmoor Road, according to Public Works Director Mary Anderson. 

Rev. Alan Chan of the 200-member church and its secretary, Jed Lam, told the council and more than 40 people at the meeting that the project would impose a hardship on their churchgoers and the neighborhood. 

“My concern is safety,” Chan said. “It will not be safe for them [his members]. The problem is even if you allow the U-turn on Highmoor, traffic will back up.”

The U-turn is permitted by state law unless otherwise prohibited, said Catherine Kibble, section chief for IDOT's consultant services. 

Before Chan and Lam spoke, Silberman asked Kibble if IDOT could modify the project to allow direct ingress and egress for the church’s property. She explained this could only be done if the church paid the cost. 

“This is a private benefit with no benefit to the public,” Kibble said. “The private entity that benefits from it will have to pay for it.”

She said the cost would be between $150,000 and $200,000. Lam said that was far beyond the church’s means. 

At that point, several council members suggested a compromise that would allow a left turn out of the church parking lot but not into it. Kibble indicated the cost would be less.

Kirsch then moved the council delay a vote until its May 9 meeting to allow the church and IDOT to reach a compromise. 

“If we don’t let the contracts by May 1, the contractors do not have to accept them and we may have to relet them [the contracts],” said Kibble, who noted further negotiations could delay the project beyond Aug. 1. 

Levenfeld then suggested a provisional approval giving City Manager Dave Limardi authority to sign the agreement between Highland Park and IDOT only if it satisfies the church. Otherwise, Limardi’s authority would expire April 30.

In another matter, when deregulation of the utility industry allowed customers of companies like North Shore Gas to purchase its fuel from another entity, it created a tax loophole. Anyone purchasing gas from an out-of-state source was not taxed, said Finance Director Elizabeth Holleb. The city has been studying ways to fix the tax glitch. 

“We are proposing a use tax of 4.5 cents per therm. We are proposing a use tax because we can’t measure how much they [customers] buy, only how much they use,” Holleb said. “This is what other municipalities do.” 

Belsky quickly voiced his approval of the measure that had strong support from most members of the council. “This is not a new tax,” he said. “This is a tax fairness proposal.” 

Mandel objected because he considered a use tax for all citizens would be a fairer, more equal approach. 

Before debating these proposals, Belsky declared May 1-8 Holocaust Remembrance Days to commemorate the slaying of 6 million Jews and others when the Nazis ruled Germany. The council also heard a presentation from Highland Park High School sophomore Alex Gordon who sought the creation of next winter to benefit senior citizens and people with disabilities.