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HomeMy WebLinkAbout06/10/1997 COW minutes ~ ~ ~' ~ ~ , REVISED 6/24/97 · , ~ ~ .... MINUTES ,' COMMITTEE OF THE WHOLE .... ~' , JUNE 10, 1997 I.' 'CALL:'TO ORDER "~-' : ~ ~ · ' Mayor Farley called the meeting to order at 7:35 p.m. Present at the meeting were: 'Trustees George Clowes, Timothy Corcoran, Paul Hoefert, Ri(~hard Lohrstorfer, ' Daniel Nocchi and Irvana Wilks. Staff present included Village Manager Michael ~ Janonis, Assistant Village Manager David Strahl, Finance Director Brian Caputo, Finance Commission membei's; Mount Prospect Chamber Executive Director Janet .... Hansen, Randhurst Manager Tom Shanley,. Brian Weinberg, Suburban Printing. I!. MINUTES' ! ' .~ 'Approval of Minutes of May 27, 1997. Motion. made .by. Trustee Hoefert and Seconded by Trustee Nocchi to approve the Minutes. Trustee Clowes requested some i'evisions to the quoted items regarding the Interior Inspection Program. ~ ~ : Mayor Farley requested some revisions to the language regarding the Rand Road Corridor Study language. Minutes were not approved pending these changes for ' the next meeting. '" ~. ' III, CITIZENS TO BE HEARD ~ "None.' '~ '"'- '- ~ IV. FUNDING ALTERNATIVES FOR STREET IMPROVEMENTS ' Mayor Farley introduced the topic and stated that he wanted to focus the Board on 'narrowing the choices of funding so that final determination could be made in the 'near future: He stated that while the choices available would not make everyone ~ ' ~ happyl it Will be necessary to focus on solutions. He 'stated that the benefits of the '~ pay-as-youTgo program are numerous and postponing this decision only burdens a future Village Board. He stated that the'streets are one of the most visible assets the Village has.' He also stated that a portion of the Sales Tax has been used for Flood Control in the past and Flood Control Projects remain to be completed by using 'those proCeeds. Finance Director Brian Caputo provided a general overview summarizing the joint meeting of the Village Board and the Finance Commission which occurred on May 13, 1997. Finance Commission recommended using the Utility Tax as the centerpiece for the funding structure available for streets. He provided a general overview of the vari0u~ alterr{ative~ as~discussed and revised through the workshop discussions. He also provided a geheral overview of the impact of the Utility Tax burden on residents compared to commercial owners. Brian Weinberg spoke. He is Chairman of the Mount Prospect Chamber of Commerce Govemment Affairs Committee. He stated the Chamber has not made an official recommendation yet, however, the Government Affairs Committee has devei?ped a respdnse and that response is expected to be accepted by the full ~Chamber in the near future. He stated the burden of Property Tax is placed upon businesses'already and these businesses contribute over 50% o~ithe,Revenue for the.Village. He stated that the Government Affairs Committee opposes an increase in Property Tax; Sales .Tax and Utility Tax and such increases would put businesses in Mount Prospect at a competitive disadvantage. As an ex'ample, the use of phones and phone lines by businesses are disproportionately.~higher than residential property owners. Therefore, the burden of the Utility'Tax increases would again 'be placed'upon businesses ~'compared to residents. ~ He would recommend that the Villagi~ transfer $1.1 million from the Refuse DiSposal Fund to fund street improvemehts; .impose a ,1¢ per gallon Gasoline Tax to fund the streets. These two ~evenue sources would generate an estimated $1.3 million 'per year. He ~stated'th~t these increases:would amount to ~approximately $80 per year, per single-family billed separately or on their water bill and he ,stated that the businesses should not be subsidizing refuse disposal for residents. Ann Smilanic, member of the Finance Commission, prOvided the Finance Commission response to the Chamber's proposal. She PrOvided a general overview of the Finance Commission's recommendations and agreed that resources needed to be allotted to fund this program.'. The Utility Tax was the centerpiece of the Finance Commission discussions because it could easily'be r:educed'a§ the need for ~evenue diminishes in future years., ~Finance Commission recommends pay-as-you-go to the Village Board which would free up other available revenue sources to 'use for other projects. ~ She.stated the Chambe'r proposal has a $700,000 shortage and while she agrees that no tax is fair and it i~ unfortunate that people cannot pay taxes if they receive a direct benefit. 'She'stat~ed that unlike residents,,businesses are able,to deduct business expenses like Utility Tax, etc. She stated the Utility ,Tax use is the easiest to impl,ement and collect. Tom Shanley, Vice President and General Manager.. o~ R~ind'hur:s~, spoke. He stated that Randhurst contributes a great deal in taxes and is paying more than its fair share as it is and he would support the Chamber proposal. Newt Hallman, Finance Commission member, spoke. He stated the Utility Tax has ~a Sunset ~Clause as recommended and stated that no one wants new taxes but some response to the condition of the streets must be Ur{dertaken; He stated it ~appears from the Chamber proposal that the Chamber is looking for,tax relief by removing cun'ent taxes and shifting those to residents to fbnd the roads..~ He stated that businesses and residents should both contribute and there are Varying benefits for all tax payers. Brian Weinberg,' owner of Suburban Printing, stated that businesses are funding the refuse disposal for residents and fund approximately 60% of the education expenses within the community through Property Taxes. He Stated that in many smaller businesses such as his own, taxes are the major cost not labor costs as one ~might think. He stated that residents will ~not pay a proport!onate share of the 'proposed taxes under'the Utility ~ Tax component and he is requesting equity between the two. Trustee Hoefert presented a funding alternative 7-R as depicted ir{ th~e handout Prepared by Brian Caputo. His proposal includes a 2¢~ per gallon Gasoline Tax and increasing the vehicle stickers from $30 to $36, the creation of an Ambalance Fee 'of $50 for resident and $200 for non-resident ahd a %¢ sales Tax increase along with Administrative citations or P-Tickets asthey are referred to.' He stated that he is not supportive of the Utility Tax because of the impact on businesses. He also 'stated that he wants to tie ,the,source of the funds to the ~sers of the streets. He stated that he is not supportive of the change in refuse funding as proposed by the Chamber. ~ General comments by Village Board members' included the following items: '; Numerous Board 'members thanked th~ chamber'perSonally for their proposal. Some Board members stated there are certain c, omp0nents of the Chamber ~proposal which they are not supportive and some of the information which the ~ Chamber is using to compute their estimated revenue might .be understated. Some members stated that any revenue source chosen would have to easily be collected and it should have some growth over time,while not being a declin!ng revenue source. Some members were concerned that Mount Prospect may not remain attractive for new residents if the new revenue sources chosen are too far one way or another and not spread adequately among various sources." ~ ~ Trustee Clowes stated that he supported the Chamber proposal. ~He stated the .general Cook County Property Tax structure is unfair to businesses and drives ~ many businesses out of Cook County which ~in turn shifts much of the burden for funding back on to the residents that remain. He stated that,he is supportive of tying the revenue source to the users. He is also supportive of an Ambulance Fee change since it is paid by insurance companies and would support the use of P- Tickets as proposed by Trustee Hoefert. He also requested that the Village Board direct staff to look at Village operations in order to find approximately $100,000 from the General Fund to assist in the necessary funding. 3 ~rUstee Wilks stated that she would support a Gasoline ~,Tax at 1¢ per gallon. She is not SuPportive Of the qehicle sticker increase and is generally supportiv_e of option 3-R Which' includes ~ Utility Tax rate at 4.1% including ~an Ambulance Fee. She 'stated the Village Board islfacing future deficits and it is important not to tie all up revenUe sOui'ce§ to fund the roads and leave some available for addressing this proposed deficit ~''~ ' '": ' , ' ~ Mayor Farley stated that he is not supportive of proposal 7-R as p~'0posed by Trustee Hoefert. 'He is' not ~supp0rtive of a resident Ambulance Fee, however, he' ~d0es ~support'h ,n,oh-residentAmbulance Fee increase. He is not supportive of a i Sales Tax increase. He stated that the P Tickets are currently under litigation and should not be~included as'isart of the revenue mix until that litigation is concluded. He Stated he is not supportive,of the General Fund reductions as proposed by ~Trustee Clowes becafise of the.s~rvice :reduction impacts: ~, He stated that he supports the Utility Tax increase, the Gasoline Tax, .Ambulance~ Fee for non- residents. :!Truste~ Wilks ~tated'that she is generally supportive of Option 3-R which has a 1¢ per gallon Gasoline Tax, a 4.1%.Utility Tax decreasing to 2.7% in 2002 and 2.1% ~in 2005; a resider~t Ambulance Fee of $50 and a non-resident Ambulance Fee of $200. Her. secdnd cl'ioice would be alternative 2-Ras a funding mechanism. She ~,made a Motion to uso landing alternative 3-R as the,street improvement funding source.~ Motion seconded by Trustee Corcoran.' Consensus, vote ,for the 2-R prop0~al:"Motion failed on a 4-3 ~,ote.~ ,,',' ~ ~ , , ~ ~,-~ · :,~ ~. ~ lmsteeHoefert suggested that each revenue source be reviewed individually. ~Trustee Clowes made a Motion to reduce the General Fund by $1~0,000 and 'redirect the 'money for roads and to direct the Village Manager to recommend the necessary f0~'ding cuts.' Motion died due to a lackof second. Trustee Co~:C'oran made'a Motion to increase,the ~vehicle sticker fee from $30 to $361 establish a Gasoline Tax of 1¢ per gallon and increase the Utility Tax to 4.1%. ~o d0dby~T~ Cchi ,, ~ ~ ~ ~ ' ~ ~ Motion se n ustee No .... : .~, Trustee 'Clow0s' requested the' Moti0n~,be amended 'to include a resident Ambulance~fee of $~00'ahd a non-resident Ambulance Fee of $200.,,. Motion died for a lack of a second. 'Ti;~s~';-,;~'.,~,~ Hoefert' ~ ~ offered~an amendmeht to the origifial'Motion to include a $50 .resident~ fee fo~ ambulance and a $200 nonresident fee for ambulance., Motion was d~ed by N°cchi secon Trustee . ; ; 4 General discussion by the Village. Board members included ,the following items: Some" members were against charging for'ambulAnr_~ fees to residents. Other Trustees suggested the staff, review insurance coverage, ,pri°,r !o ambulance fee changes being imposed. ,Consensus On the amended moiion to in'ease the ambulance fees failed on a vote of 4-3. ,,· , , Trustee H0efert made a motion to increase the 1¢ per gallon gasoline tax from 1¢ to 2¢ per gallon. Motion seconded by Trustee Clowes. ~ Consensus of this amendment was a 5-1 vote. The main motion of increasing ~th~ vehicle stickers from $30 to $36 with the difference of funding necessary to make up the total be established as the Utility Tax depending on the amount necessary to complete the funding necessary. Motion passed on a vote of 4-3. General comments by Village Board members included the following items: There was concern raised regarding {.he large increase in the Utility Tax. There was also discussion as to the belief that citizens are being nickeled and dimed i~nde~the Utility Tax increase and the inCrease in vehicle stickers is not a reliable and steady stream of revenue. ~ '" Trustee 'Clowes'made a motion to shift the 'cost Of the refuse disposal subsidy provided by businesses back to cover'a portion~0f business refuse disposal costs. Motion died for a lack of a Second."" Trustee Wilks requested the motion be divided so that vehicle stickers and Utility Ta~ increases could be voted on separately. She Stated that according to Roberts Rules of Order, such a motion does not require a second motion to divide the Motion which includes the revenue sources of the vehicle sticker and the Utility Tax. Her Motion to divide the revenueSoumes was not granted. Trustee Corcoran made a motion to waive Roberts Rules of Order. Motion died due to a lack of a second. ~ ~' Finance Director Brian Caputo stated that the proposed inci'ease in revenues would be forwarded to the Village Board at its first meeting in July for approval. Trustee clowes made a Motion to establish a sunset schedule for the revenue SoUrces created tO fund Street improvement programi Trustee ~Nocchi seconded ,the moti'on. Motion was approved on a6~o vOte. 5 :Gene;'al consensus of the Village Board directed that revenues be established to fund the street imProvement program. The revenue sources to be used 'include 'an increase in vehicle 'stick~rs ~from ~$30 to ,$36 per' vehicle; eS'tablishment of a GaSoline Tax of 2¢ per gallon with the balance of the necessary revenue made up from Utility Tax proceeds; the percentage to be dete~ined based on the amount of revenue necessa~ to fund the program, ~*The~ B&ard also cam~ t0 ~consensus to e~tablish a~sunset provisi6n for the revenue sources to establish funding for the street program and new revenue sources would be terminated once th~ street program had been concluded. , MANAGER'S REPORT~ ~ ~ ~ '~ ,~ None ANY OTHER BUSINESS " ' '" Trustee Clowes wac(ed to thank all of the pa~iciPants i~" ~he Clean-up Day that · - occurred on the south side over the weekend. Viliage"Manag~r, Janonis stated that there Wer~ a ~umber:'~f' ~esidents in the immediate area which were involved in the effod. Trustee Wilks ~made a Motion to,go, into Closed Session to discuss collective ,negotiation matter~ "betwe~ a, public,, b0dy,,and its emp¥oyees~ with their representatives and {o discuss the'purChase` of leased or mai prgp~dy,for the use of the public body. Motion seconded by Trustee Noc~hi. ,Village M~nager ~anonis ~equested litigat'i°~ be added to the CI6~d Session items for discussion. ,. Roll ~11 was taken~ w~t~ 'ali Trustees~vofi~g t~ move i~tO'Closed Session at 10:01 p.m. Meeting ~econv~ned at '~ 0:43 'p~'m. into 0pe~'Session. ,'A ,number :of Trustees requested a status repod regarding the Pontarelli pr°pedies in downtown and ~ Creekside Manager Janonis stated that to his knowle~g Mike Pontar~lli has been looking 'for a buyer for the final b~ilding in the downtown and the remaining buildings in the Creekside development. He state~ the Village , has attached demand letter fee to the properly in orde~ to obtain' the'money requi~ed t~'mu~h'-the~Development Agreement. He stated that the Terrace Supply 5uilding ~as'b&eh'sold and the Village staff has been in contact with the new owner in an attempt to dress up the building. Trustee Corcoran stated that he had received a follow-up letter about public housing areas which he had forwarded to Congressional Representatives. General discussion of the Board members included a concern for the Property Tax rates not being favorable for apartments thereby m!nimizing the opportunity for the necessary investment capital to maintain the buildings. There was also some concern regarding the rehabilitation of Timberlake complex soon being sold off to separate owners of each building. Board members stated the housing staff has done a terrific job in carrying out the Board's wishes regarding multi-family issues. Trustee Hoefert stated that Walgreens' interest in the downtown shows the market will return to the downtown and also stated that he has concerns about preliminary staff discussions with Walgreens' prior to informing the Village Board of Walgreens' interest in the downtown. VII. ADJOURNMENT There being no further business, a Motion was made to adjourn the meeting by Trustee Wilks and Seconded by Trustee Clowes. The meeting was adjourned at 11:02 p.m. Respectfully submitted, DAVID STRAHL Assistant Village Manager DS/rcc 7