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HomeMy WebLinkAbout02/22/2007 FC minutes FINANCE COMMISSION DRAFT MINUTES OF THE MEETING FEBRUARY 22, 2007 VILLAGE HALL BUILDING DRAFT I. CALL TO ORDER The meeting was called to order at 7:05 p.m. Those present included Chairman Charles Bennett and Commissioners Wayne Gardner, Vince Grochocinski, John Kellerhals, Tom Pekras and Ann Smilanic. Also present were Daily Herald reporter Steve Zalusky, Director of Finance David Erb, Deputy Director of Finance Carol Widmer and Finance Administrative Assistant Lisa Burkemper. II. ApPRO V AL OF MINUTES Commissioner Tom Pekras motioned to approve the minutes of November 8, 2006 as amended. Commissioner Vince Grochocinski seconded the motion and the minutes were accepted as amended. Commissioner Ann Smilanic motioned to approve the minutes of January 25,2007. Commissioner Tom Pekras seconded the motion and the minutes were accepted as presented. Commissioner John Kellerhals abstained. Commissioner Tom Pekras mentioned that the work plan incorrectly listed a meeting in November on the 23rd. The meeting is actually Thursday, November 22nd. III. COMMUNICA TrONS AND PETITIONS - CITIZENS TO BE HEARD There was nothing to report. IV. DISCUSSION REGARDING CAPITAL IMPROVEMENTS FUNDING SOURCE Chairman Charles Bennett began the discussion by opening the floor to a discussion on the various alternative revenue enhancements. Chairman Bennett listed the following revenues as a starting point for the discussion and asked the commission for their comments: 1. Property Taxes 2. Home Rule Sales Tax 3. Vehicle Sticker Increase 4. Food and Beverage Tax 5. Utility Taxes Commissioners Vince Grochocinski, Ann Smilanic, Wayne Gardner and Tom Pekras agreed that the Village should not increase property taxes as a way offunding the Capital Improvements Plan (CIP). Commissioner John Kellerhals added that he would like to see the Village increase property taxes to offset and eliminate the direct charge refuse bill. However, Commissioner Kellerhals added that he would not recommend the Village raise property taxes to raise funds for the CIP. Commissioner Tom Pekras stated that non-residents would help generate funds and relieve some of the burden to the residents if there was an increase in the Home Rule Sales Tax. Commissioner Pekras asked the Director of Finance which surrounding communities already have a I % Home Rule Sales Tax. Mr. Erb stated that Niles, Schaumburg and Morton Grove are a few that currently charge I %. Commissioner Pekras added that this revenue alternative adds the greatest amount of money. Chairman Charles Bennett added that an increase in the Home Rule Sales Tax applies to residents and non-residents. Chairman Bennett stated that money spent in Mount Prospect would generate additional Home Rule Sales Tax revenue and then the residents would directly benefit from the capital improvements made throughout the Village that the additional monies would provide. Commissioner Vince Grochocinski stated that he was not in favor of an increase in the Food and Beverage Tax because a 1% increase would bring the total sales tax on Food and Beverage to 10.5%. Commissioner Grochocinski felt that the residents would not be in favor of the increase that would put the tax over 10%. Commissioner John Kellerhals asked if the Village could impose a tax on cigarettes. Mr. Erb stated that he was not aware of the ability to impose a tax and would check the feasibility of it. Commissioner Ann Smilanic stated that she would not be in favor of increasing the vehicle sticker fee. Commissioners Tom Pekras, Wayne Gardner and John Kellerhals agreed that they would not like to see such an increase. Commissioner Vince Grochocinski stated that he was indifferent to an increase. After a brief discussion related to increasing one or both utility taxes the commission agreed that an increase at this time would not be advisable due to recent increases in the utility rates. Commissioner John Kellerhals stated that he would be in favor of adding an additional I cent per gallon gas tax. Commissioner Ann Smilanic stated that when there is money left over at the end ofthe year from a new position that was not filled for the full 12 months or if an employee leaves and their salary isn't being paid for a certain amount of time, why not take this unexpected money and transfer it to the CIP fund. Chairman Charles Bennett suggested that maybe the commission would like to recommend that some of the General Fund surplus be transferred to the CIP as a one time transfer. Although doing this would not eliminate the need to find a dedicated source to continue to fund the CIP. Chairman Bennett challenged the commission to think about any programs that the Village might be doing that could be eliminated. Following the discussion Chairman Bennett advised that he would draft a proposal for submittal to the Village Board that would encourage the Board to implement the following: I. Transfer General Fund surplus over and above 25% to the CIP. 2. Increase Home Rule Sales Tax by 1;4% and earmark the funds as a dedicated funding source for the CIP. 3. Encourage departmental review of any activities that could be eliminated or curtailed. Commissioner John Kellerhals stated that he would not be in favor of increasing the Home Rule Sales Tax right now and would recommend delaying an increase. V. OTHER BUSINESS There was nothing to report. VI. CHAIRMAN'S REPORT There was nothing to report. VII. FINANCE DIRECTOR'S REPORT There was nothing to report. VIII. Next Meeting: March 22,2007 Commissioner Tom Pekras motioned to adjourn which Commissioner Vince Grochocinski seconded. The meeting was adjourned at 9:03 p.m. The next meeting will be Thursday, March 22,2007. Respectfully submitted, Lisa Burkemper Administrative Assistant Finance Department 2