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HomeMy WebLinkAbout5. OLD BUSINESS 9/20/05 Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: MICHAEL J. FIGOLAH, FIRE CHIEF DATE: SEPTEMBER 2, 2005 SUBJECT: ORDINANCE AMENDING CHAPTERS 5 AND 11 OF THE VILLAGE CODE OF MOUNT PROSPECT- FOREIGN FIRE INSURANCE TAX BOARD The purpose of the attached Ordinance is to establish a Foreign Fire Insurance Tax Board to receive and expend foreign fire tax funds. Every corporation, company, and association which is not incorporated under the laws of this State and which is engaged in effecting fire insurance in the Village of Mount Prospect pays a tax at a rate set by local ordinance of the gross receipts received from fire insurance. Currently the tax rate is 2%. The money collected is to be used solely for the maintenance, use, and benefit of the Fire Department. The Village has been the beneficiary of these funds for many years, which amounts to approximately $37,000 annually. Previously, the firefighters turned over these funds to the Village. The recently negotiated firefighter contract requires the execution of a Foreign Fire Tax Insurance Board according to 65 ILCS 5/11-10. The Ordinance creates a Foreign Fire Insurance Tax Board that consists offive (5) Board members (1 battalion chief or above, 1 lieutenant, 2 firefighters, and 1 Department non-sworn member) with the Finance Director serving as the Village's liaison. The Foreign Fire Insurance Tax Board will ensure that foreign fire tax funds will be used solely for the maintenance, use, and benefit of the Fire Department by: · Making all necessary rules and regulations with respect to the FFITB and/or management of funds appropriated to the Board. · Developing and maintaining a listing of those items that it determines are appropriate expenditures. · Ensuring all expenditures by the FFITB are in accordance with the Village's policies regarding the expenditure of municipal funds. · Ensuring the funds of the FFITB are reviewed annually as part of the Village audit. · Creating a treasurer position that shall give sufficient bond to the Village. · Providing a treasurer that shall receive funds appropriated by the Village, and shall payout such funds and/or otherwise make expenditures upon the order of the Board in accordance with current Village purchasing policies. Therefore, it is recommended thatthe Ordinance amending Chapters 5 and 11 of the Village Code, thereby creating the Foreign Fire Insurance Tax Board, be passed. MF Attachment A ORDINANCE NO AN ORDINANCE AMENDING CHAPTER 5 AND CHAPTER 11 OF THE VILLAGE CODE OF MOUNT PROSPECT BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION 1: A new Article XVI, entitled "Foreign Fire Insurance Tax Board," shall be inserted into Chapter 5 of the Mount Prospect Village Code, to be and read as follows: Article XVI. FOREIGN FIRE INSURANCE TAX BOARD Section 16.101. CREATION AND PURPOSE. There is hereby established a Foreign Fire Insurance Tax Board of the Village of Mount Prospect to receive and expend foreign fire insurance tax funds for the maintenance, use and benefit of the village fire department, in accordance with the Illinois Compiled Statutes 1. Section 16.102. DEFINITION. "Members of the department" for purpose of this Article shall include all members of the fire department, including sworn and non-sworn members, but excluding probationary members. Section 16.103. ORGANIZATION. A. The Foreign Fire Insurance Tax Board shall consist of five (5) board members, as follows: 1. One (1) board member shall serve from the sworn rank of battalion chief and above, 2. One (1) board member shall serve from the sworn rank oflieutenant, 3. Two (2) board members shall serve from the sworn rank of firefighter. 4. One (1) board member shall serve from the department's non-sworn personnel. B. The board members within each of the categories in subsection A shall be nominated and elected by the members of the department within the respective categories. I 65 ILCS 5/1 1-10-2. .' iManage 1406972 C. The village finance director, or designee, shall serve as the village's liaison to the Foreign Fire Insurance Tax Board. D. At the first meeting of the Foreign Fire Insurance Tax Board and annually thereafter, the board members shall select a chairman, vice-chairman, secretary and treasurer. E. Term of Office: 1. Commencing with, and only for the first election, the terms of office shall be staggered so that the board members, serving from the rank of Battalion Chief and above, the rank of lieutenant and the department's non-sworn personnel, shall serve one (1) year terms, and board members serving from the rank of firefighter shall serve two (2) year terms. Upon subsequent elections, board members shall serve a two (2) year term. 2. In the event no successor board member assumes office prior to the expiration of the two (2) year term, then the board member shall serve until a successor board member assumes office. The initial terms of office of the board members shall begin thirty (30) days after completion of the election. Each board member shall hold office during his/her term unless the member resigns from the department, retires from the department, or is discharged from the department. If any of these three (3) events occur, the board member shall automatically be removed from the board and the position shall be deemed vacant. 3. Vacancies in the foreign fire insurance board shall be filled by election of the members of the department from those members within the vacant category, and such election shall be for the balance of the unexpired term. Any person elected to fill a board position vacancy shall assume office immediately upon completion of the election. F. Election procedures: 1. Temporary Election Procedure: There is hereby established a temporary election committee, which shall consist of five (5) members of the department. The chief of the fire department shall serve as a member and as chairman of the committee. The chief shall appoint a member of the department to represent each of the categories of members set forth in subsection A. The temporary committee shall be responsible for organizing, conducting and supervising the initial election of department members to serve on the board. 2. Permanent Election Procedure: The Foreign Fire Insurance Tax Board shall develop a procedure for the nomination of members of the iManage 1406972 2 department to the various categories set forth in subsection A above. All rules and regulations with respect to the election process shall be posted throughout the department a minimum of thirty (30) days prior the election. G. Duties of Officers: 1. The chairman shall preside over meetings of the Foreign Fire Insurance Tax Board. He/she shall be the executive head of the board and an ex-officio member of all sub-committees. He/she shall appoint such committees as may be provided for in this Article and any special committees as may be from time to time established by the board to carry our specific tasks. The chairman shall have general supervision of the activities of committees created in accordance with this Article. 2. The vice chairman shall assist the chairman in any such manner as the chairman may determine. In the absence of the chairman, he/she shall preside at the meetings of the board. If the office of the chairman becomes vacated, the vice-chairman shall be acting chairman until the office of chairman is filled in accordance with this Section. 3. The secretary shall be custodian of all documents, records, books and papers belonging to the board. He/she shall keep an accurate record of the meetings of the board and of the various committees of which he shall be the secretary. He/she shall conduct correspondence of the board promptly. 4. The treasurer shall be charged with the responsibility of monitoring the expenditures of all monies. He/she shall work closely with the village's finance director with regards to the fund balances and financial transactions affecting the fund. He/she shall maintain a current ledger showing the starting fund balance and subsequent debits for items purchased. He/she shall present a financial statement at all regular business meetings. H. The officers of the Foreign Fire Insurance Tax Board shall serve without com pensati on. Sec. 16.104. POWERS AND DUTIES. A. The Foreign Fire Insurance Tax Board shall make all necessary rules and regulations with respect to the Foreign Fire Insurance Tax Board and/or the management of funds appropriated to the board. B. The Foreign Fire Insurance Tax Board shall develop and maintain a listing of those items that it determines are appropriate expenditures for the iManage 1406972 3 maintenance, use, and benefit of the fire department. The funds received by the village pursuant to this Article shall be appropriated to the Foreign Fire Insurance Tax Board annually by the village board and set apart as separate fund. C. All expenditures by the Foreign Fire Insurance Tax Board shall be in accordance with the village's ordinances, rules, procedures and policies concerning the expenditure of municipal funds. D. The funds of the Foreign Fire Insurance Tax Board shall be annually reviewed as part of the village audit. The audit shall verify that purchases by the board are for the maintenance, use and benefit of the fire department, as described in subsection 16.106 below. E. The treasurer of the Foreign Fire Insurance Tax Board shall give a sufficient bond to the village in the amount set forth in Appendix A. The bond shall be conditioned upon the faithful performance by the treasurer of his duties under statute, the provision of this Article, and the rules and regulations adopted by the Foreign Fire Insurance Tax Board. F. The treasurer of the Foreign Fire Insurance Tax Board shall receive funds appropriated by the village, and shall payout such funds and/or otherwise make expenditures upon the order of the board, in accordance with current village purchasing policies. Any expenditure made by the treasurer, pursuant to the order of the board, shall be solely for the maintenance, use and benefit of the fire department, as described in subsection 16.106 herein below. Sec. 16.105. QUORUM, SPECIAL MEETINGS. The Foreign Fire Insurance Tax Board shall, in accordance with the Open Meetings Act, establish a regular time and place for its meetings, and publish notices of those meetings. The board shall be subject to the provisions of the Illinois Open Meeting Act. Three (3) board members shall constitute a quorum for the transaction of business. The chairman may call a special meeting at any time. A special meeting may also be called upon the written notice of three (3) board members. Such notice shall be in writing, duly signed by the board members, describing, in brief, the nature or object of the special meeting. Any person shall be entitled to appear and be heard on any matter before the board. Minutes of all board meetings shall be filed with the village clerk. Sec. 16.106. USE OF FUNDS. A. Funds received by the Foreign Fire Insurance Tax Board may be used solely for the maintenance, use and benefit of the fire department; iManage 1406972 4 B. No funds shall be used for the personal benefit of any person; for any person, use, or function not directly related to the village fire department; for food or beverages; or for any recreational or entertainment activity; and C. The costs for the treasurer's bond and those associated with the annual audit of the foreign fire insurance funds, which is conducted as part of the village audit, shall be paid by the board from the funds of the board. Sec. 16.107. FOREIGN FIRE INSURANCE TAX IMPOSED. Every corporation, company, and association which is not incorporated under the laws of this state and which is engaged in effecting fire insurance in the Village of Mount Prospect, shall pay to the Director of Finance for the maintenance, use, and benefit of the fire department thereof, a tax in the amount of 2% of the gross receipts received from fire insurance upon property situated within the Village. All payments under the provisions of this chapter shall be made on or before the fifteenth day of July following the termination of the year for which such payments are due. Sec. 16.108. ACCOUNT. Every person acting as representative for or on behalf of any such company or association shall, on or before the fifteenth day of July of each year, render to the Director of Finance a full, true and just account, verified by his oath of all premiums which have been received by him on behalf of the company during the year ending the preceding July first on such fire insurance policies on property located within the Village. Such agent shall at the time of rendering such report, pay to the Director of Finance the sum of money for which the company, corporation, or association represented by him is chargeable, by virtue of the provisions of this Ordinance. Sec. 16.109. FAILURE TO ACCOUNT OR PAY TAX. If the account is not rendered on or before the fifteenth day of July of each year, or if the sum due remains unpaid after that day, it shall be unlawful for any corporation, company, or association, so in default, to transact any business in the municipality or fire protection district until the sum due has been fully paid. This provision shall not relieve any corporation, company, or association from the payment of any loss upon any risk that may be taken in violation of this requirement. Sec. 16.110. MARINE INSURANCE. The provisions of this ordinance shall not be applicable to receipts from contracts of marine insurance, even though they include insurance against fire, where the premium for the fire insurance is not separately specified. iManage 1406972 5 SECTION 2: That Article XV of Chapter 11 of the Village Code of the Village of Mount Prospect, entitled "Foreign Fire Insurance Agencies," shall be deleted in its entirety. SECTION 3: This Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this _ day of ,2005. ATTEST: Lisa Angell, Village Clerk Irvana K. Wilks, Village President iManage 1406972 6