New Rock Island tax will pay for road, public transportation maintenance

Rock Island has listened to residents who shared their views on the city's needs and has a new play to pay for them.

The city surveyed residents and stake holders in July 2022 to ask them about the city's biggest needs. The majority of respondents said road repairs and maintenance and Rock Island has a new plan to fund that request. An estimated $2 million in annual revenue can be generated by eliminating the local gas tax and implementing a street improvement utility fee in its place. That amount is $1.5 million more than the city has been collecting from the local gas tax.

The Rock Island City Council approved creating the street improvement utility fee in April 2024. Rock Island has relied on revenue from the local gas tax for years. The tax was only generated when drivers filled their tanks at a Rock Island gas station. Increased fuel economy, electric vehicles and increased competition from neighboring states like Iowa meant that revenue from the local motor fuel tax has been inadequate to maintain roads and other transportation needs.

The local gas tax generated $374,530 in 2023, $368,593 in 2022, $421,461 in 2021 and $428,796 in 2020. The street improvement utility is exclusively for maintaining, repairing and improving the public transportation system, including roads, sidewalks, parking lots, traffic signals and street lighting. This initiative ensures the functionality and safety of the transportation system owned or operated by Rock Island.

Residents can expect to see the street improvement utility fee on water bills in early November. The new fee structure will be implemented based on the size of residents' parcels. All parcels with a gross area of less than 6,000-square-feet will pay $7 per month. Parcels greater than 6,000 but less than 18,000-square-feet will pay $10 per month. Parcels greater than 18,000 but less than 43,560-square-feet (an acre) will pay $20 per month. Parcels greater than 43,560-square-feet will pay $30 per month.

Implementing the new street improvement utility fee ensures a dedicated and stable source of funding for Rock Island's transportation infrastructure. One of the primary focuses of the funding will be on residential streets. Nearly 30%, or 44 miles, of the 148-mile road network will see improvements within the first five years.