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Channahon prepares for possible loss of point of sale income

CHANNAHON – The village of Channahon is taking planning measures to better prepare itself for the possible loss of its point of sale income.

Finance Director Bob Guess told the Channahon Village Board earlier this week he may give them various scenarios with the proposed budget next month regarding dollars in the village’s rebate fund.

Since 1999, the village has been involved in a sales tax rebate program where several businesses that are not totally based in Channahon, have the village on record as their point of sale location to take advantage of Channahon’s lower sales tax. The program brings in an average of around $1.5 million a year to the village.

However, the Illinois Department of Revenue last month issued an emergency amendment establishing new regulations preventing municipalities from collecting sales taxes when the sales did not occur in a “meaningful way,” in their city limits.

At the Village Board meeting, Guess acknowledged the amount of income the village will be receiving from the tax rebates is in a “flux” at this time.

“We don’t know when and how much they’re going to withhold,” Guess said of the Department of Revenue.

He said he may create three budget scenarios to present to the board – one where the revenues to the rebate fund remain status quo; another where the revenues are totally withheld; and a third that would be somewhere in between.

Village President Joe Cook said the changes will not affect day to day operations of the village.

“The good news is that the board has followed Bob’s advice from day one and not used [the income] for operations,” Cook said.

Those dollars always have been used for capital projects, he said, such as building the current village hall.

Next year, the items the village planned on using the fund for included some technology, vehicles for the police and public works department, ongoing road programs and a few other expenditures.

Cook added that the village is expecting new revenue in the near future from businesses that will be going up around the Route 6 and Interstate 55 exchange.

The board also received good news about its drinking water situation. One of the two wells that was down should be back online by the end of next week, according to Public Works Director Ed Dolezal.

The town has four wells – two deep and two shallow. One of the deep wells, number four, already had been taken off line for scheduled maintenance when the village’s other deep well, number six, went down in mid-January, blowing the main breaker.

The maintenance has just been completed on well four, and Dolezal said it’s been flooded with fresh water, and the system will be televised this week.

If all is well, water quality will be tested, and the well could be producing again in about a week.

Pump equipment in the well that failed has been removed, and there was evidence of electrical arcing at the cables that enter the motor.

Dolezal said it’s possible water seeped into the equipment.

If so, he said the motor may not be damaged, but it will still undoubtedly be some time before that well is back online.

• Reporter Jessica Bourque contributed to this

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