Motor Fuel Tax Dollars Leveraged to Help Maintain Streets

The City Council approved the Fiscal Year 2027 Motor Fuel Tax (MFT) Maintenance Resolution, authorizing $1,515,000 in MFT-funded maintenance expenditures, as well as a $165,000 TAI Maintenance Engineering agreement for the 2026 Street Resurfacing Program.

The annual MFT resolution authorizes the use of state-shared Motor Fuel Tax funds for street maintenance throughout the fiscal year. These funds help cover expenses such as streetlight repairs and energy costs, pavement patching materials, road salt purchases, and engineering and construction costs associated with the annual Street Resurfacing Program.

"This annual Motor Fuel Tax approval gives the city permission to use its state-shared Motor Fuel Tax dollars to maintain our streets.  It does not create a new tax—it authorizes spending of funds that have already been allocated for transportation purposes," explains Greg Jackson, Chief of Staff.

WHAT IS THE MOTOR FUEL TAX (MFT)?

Every time people buy gasoline or diesel in Illinois, a portion of the state motor fuel tax is distributed to local governments. Our municipality receives a share of those funds each year based on a state formula.

HOW ARE MFT FUNDS USED?

By law, these funds are restricted to transportation-related purposes, such as maintaining and improving local streets, repairing pavement, replacing signs, maintaining sidewalks (where eligible), and other approved road maintenance activities. They cannot be used for unrelated municipal expenses.

WHY DOES THE VILLAGE/CITY APPROVE AN ANNUAL MFT RESOLUTION?

Each year, the governing board adopts an MFT resolution that authorizes how much of the municipality's available Motor Fuel Tax funds may be spent on eligible street and road maintenance during that fiscal year. The resolution does not create a new tax or increase taxes—it simply gives the municipality permission to use the MFT funds it has already received or has available for approved transportation projects.

WHY IS THIS IMPORTANT?

Approving the annual MFT resolution helps ensure that dedicated transportation funds are used to keep North Chicago’s roads safe and well maintained without relying solely on the city’s general operating budget.