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HomeMy WebLinkAbout9.5 Motion to waive the rule requiring two readings of an ordinance and adopt an ORDINANCE AMENDING CHAPTER 5, "BOARDS AND COMMISSIONS," ARTICLE XVI, "FOREIGN FIRE INSURANCE TAX BOARD" OF THE VILLAGE CODE OF MOUNT PROSPECTAll Item Cover Page Subject Motion to waive the rule requiring two readings of an ordinance and adopt an ORDINANCE AMENDING CHAPTER 5, "BOARDS AND COMMISSIONS," ARTICLE XVI, "FOREIGN FIRE INSURANCE TAX BOARD" OF THE VILLAGE CODE OF MOUNT PROSPECT Meeting February 3, 2026 - SPECIAL MEETING OF THE VILLAGE BOARD/COMMITTEE OF THE WHOLE OF THE MOUNT PROSPECT VILLAGE BOARD Fiscal Impact (Y/N) Dollar Amount Budget Source Category Type Information N 0.00 N/A CONSENT AGENDA Action Item The Village's current Foreign Fire Insurance Tax Board ordinance was adopted in 2014. Illinois state law governing foreign fire insurance license fees and the administration of those funds was amended, most notably through legislation effective January 1, 2023. Sections of the Village's ordinance no longer align with current statutory requirements or best practices that have been changed. The proposed ordinance update is intended to bring the Village into compliance with state law, clarify governance and authority, and modernize administrative provisions while maintaining the long-standing purpose of the fund: supporting the maintenance, use, and benefit of the Mount Prospect Fire Department. Major Updates include: • Compliance with current state law the proposed ordinance updates statutory references and incorporates language added by recent amendments to the Illinois Compiled Statutes. These changes ensure the Village's ordinances accurately reflect current law and reduce inconsistency in the code. • Clarification of Board authority and responsibilities the amended ordinance more clearly defines the powers and duties of the Foreign Fire Insurance Tax Board, including its authority to administer funds, approve expenditures, and contract for professional services as permitted by state law. This provides clearer guidance for the Board while maintaining appropriate fiscal oversight. • Modernized Board structure and elections the proposed ordinance simplifies Board composition by allowing any sworn member to be elected at large, rather than by rank category. The non -sworn position has been eliminated as a result. This change improves flexibility, supports continuity of operations, and reflects current staffing and participation realities while preserving representation. • Dispute resolution A Binding Arbitration section has been added. Any dispute between the Fire Chief and the remaining members of the Foreign Fire Insurance Board concerning whether a proposed or approved expenditure of funds is for the maintenance, use, or benefit of the Fire Department, or is otherwise authorized under 65 ILCS 5, shall be resolved through binding arbitration. The board shall adopt a written arbitration agreement and arbitration shall be the exclusive remedy available for resolving disputes. The proposed ordinance does not expand the purpose of the Foreign Fire Insurance Tax Fund or change its fundamental intent. These changes modernize the Village's ordinance to reflect current Illinois law, improves clarity and governance, and ensures the continued lawful and transparent administration of the fund. The Village will continue to hold and manage the Foreign Fire Insurance Tax funds. All expenditures will remain subject to the Village's normal purchasing and financial procedures, including applicable bidding and audit requirements. The proposed ordinance clarifies how the Board operates within existing Village controls. Discussion Alternatives 1. Board approval of updates to the Foreign Fire Insurance Tax Board Ordinance in accordance with the statutory update dated January 1, 2023. 2. Action at the discretion of the Board. Staff Recommendation Staff recommends approving updates to the Foreign Fire Insurance Tax Board Ordinance in accordance with the statutory update dated January 1, 2023. Attachments 1. Foreign Fire Insurance Tax Board Ordinance 2. Draft FFTB Chapter 5 amendments 3. Draft FFTB Chapter 5 amendments V2.0 02.03.2026 FINAL Redline-2 3 2026 SECTION: 5.1600: Creation And Purpose 5.1601: General Requirements 5.1602: Definition 5.1603: Organization 5.1604: Powers And Duties 5.1605: Quorum, Special Meetings 5.1606: Use Of Funds 5.1607: Foreign Fire Insurance Tax Imposed 5.1608: Account 5.1609: Failure To Account Or Pay Tax 5.1610: Marine Insurance 5.1600: 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 i . (Ord. 6149, 8-5-2014) Notes 1 1. 65 ILCS 5/ 11-10-2. 5.1601: GENERAL REQUIREMENTS: The general requirements set forth in article II of this chapter apply to the board to the extent not specifically otherwise provided herein. (Ord. 6149, 8-5-2014) 5.1602: DEFINITION: "Members of the department", for purpose of this article, shall include all members of the fire department, including sworn and nonsworn members, but excluding probationary members. (Ord. 6149, 8-5-2014) 5.1603 : ORGANIZATION: A. Membership: The board shall consist of seven (7) board members, who need not be residents, as follows: 1. One board member shall be the chief of the fire department, 2. One board member shall serve from the sworn rank of battalion chief and above, 3. One board member shall serve from the sworn rank of lieutenant, 4. Three (3) board members shall serve from the sworn rank of firefighter, and 5. One board member shall serve from the department's nonsworn personnel. B. Nomination And Election: Except for the chief of the fire department, the board members within each of the categories in subsection A of this section shall be nominated and elected by the members of the department within the respective categories. C. Village Liaison: The village finance director, or designee, shall serve as the village's liaison to the board. D. Officers: At the first meeting of the board and annually thereafter, the board members shall select a chairperson, vice chairperson, secretary and treasurer. E. Term Of Office: 1. 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. 2. Vacancies in the board shall be filled by election of the members of the department from those members within the vacant ratarinrxi nnri ci irh alartinn chnil ha fnr tha hnlnnrra of tha i inaxnirArl tarm Onv nnrcnn Alantarl to fill n hnnrrl nncitinn wnrrnnrxi chat 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 chairperson 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 of this section. 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 board shall develop a procedure for the nomination of members of the department to the various categories set forth in subsection A of this section. All rules and regulations with respect to the election process shall be posted throughout the department a minimum of thirty (30) days prior to the election. G. Duties Of Officers: 1. The chairperson shall preside over meetings of the board. He/she shall be the executive head of the board and an ex officio member of all subcommittees. 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 out specific tasks. The chairperson shall have general supervision of the activities of committees created in accordance with this article. 2. The vice chairperson shall assist the chairperson in any such manner as the chairperson may determine. In the absence of the chairperson, he/she shall preside at the meetings of the board. If the office of the chairperson becomes vacated, the vice chairperson shall be acting chairperson until the office of chairperson 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/she 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. (Ord. 6149, 8-5-2014) 5.1604: POWERS AND DUTIES: A. The board shall make all necessary rules and regulations with respect to the board and/or the management of funds appropriated to the board. B. The board shall develop and maintain a listing of those items that it determines are appropriate expenditures for the maintenance, use, and benefit of the fire department. The funds received by the village pursuant to this article shall be appropriated to the board annually by the village board and set apart as a separate fund. C. All expenditures by the 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 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 section 5.1606 of this article. E. The treasurer of the board shall give a sufficient bond to the village in the amount set forth in appendix A, division I of this code. 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 board. F. The treasurer of the board shall receive funds appropriated by the village, and shall pay out 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 section 5.1606 of this article. (Ord. 6149, 8-5-2014) 5.1605: QUORUM, SPECIAL MEETINGS: The board shall establish a regular time and place for its meetings. Four (4) board members shall constitute a quorum for the transaction of business. The chairperson may call a special meeting at any time. A special meeting may also be called upon the written notice by 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. (Ord. 6149, 8-5-2014) 5.1606: USE OF FUNDS: A. Funds received by the board may be used solely for the maintenance, use and benefit of the fire department. B. No funds shall be used for the personal benefit of any persons, use, or function not directly related to the village fire department. No funds shall be used for parties, alcoholic beverages or any activities deemed inappropriate by the foreign fire tax board or violate fire department or village policies. 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. (Ord. 6149, 8-5-2014) 5.1607: 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 two percent (2%) of the gross receipts received from fire insurance upon property situated within the village. All payments under the provisions of this article shall be made on or before July 15 following the termination of the - - - - - C- •- - - -1-1 -1- - - • -I- •- - - -•-- - •-1- - •- - -1. . - i � .- -1 n A e n n r n n w A X 5.1608: ACCOUNT: Every person acting as representative for or on behalf of any such company or association shall, on or before July 15 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 1 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 article. (Ord. 6149, 8-5-2014) 5.1609: FAILURE TO ACCOUNT OR PAY TAX: If the account is not rendered on or before July 15 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. (Ord. 6149, 8-5-2014) 5.1610: MARINE INSURANCE: The provisions of this article 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. (Ord. 6149, 8-5-2014) Ordinance No. AN ORDINANCE AMENDING CHAPTER 5, "BOARD AND COMMISSIONS", ARTICLE XVI, "FOREIGN FIRE INSURANCE TAX BOARD" OF THE VILLAGE CODE OF MOUNT PROSPECT WHEREAS, the Village of Mount Prospect (the "Village") is a home rule Illinois Municipal Corporation pursuant to Article VII, § 6 of the Illinois Constitution of 1970; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect desire to make certain amendments to the Village Code of Mount Prospect (the "Village Code") as set forth below; and WHEREAS, pursuant to its authority granted under Article VII, § 6 of the Illinois Constitution, the President and Board of Trustees of the Village of Mount Prospect find it in the best interest of the Village, the Village residents, and the public health, safety and welfare to amend the Village Code as set forth below. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COUNTY OF COOK, STATE OF I LLI NOIS AS FOLLOWS: SECTION ONE: Article XVI (Foreign Fire Insurance Tax Board) of Chapter 5 (Boards and Commissions), of the Village Code of Mount Prospect shall be amended to read as follows: Article XVI, "FOREIGN FIRE INSURANCE BOARD" of Chapter 5 (Boards and Commissions) of the Village Code of Mount Prospect SECTION TWO: Section 5.1600, "Definitions" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1600: CREATION AND PURPOSE: There is hereby established the Mount Prospect Foreign Fire Insurance Board. 2068873_1 The Foreign Fire Insurance Board shall exercise the powers and duties provided herein consistent with 65 ILCS 5/11-10-1 through 11-10-3 and 11-10-2.5, as amended. The purpose of the Foreign Fire Insurance Board is to receive, administer, and expend foreign fire insurance license fee proceeds solely for the maintenance, use, and benefit of the Mount Prospect Fire Department, as authorized by State law. SECTION THREE: Section 5.1602, "Definitions" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1602: DEFINITIONS: Sworn Member shall mean a member of the Mount Prospect Fire Department who has taken an oath of office Department shall mean Mount Prospect Fire Department Fund shall mean the Foreign Fire Insurance Tax Fund Board shall mean the Mount Prospect Foreign Fire Insurance Board SECTION FOUR Section 5.1603, "Organization" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1603: ORGANIZATION A. Membership The Foreign Fire Insurance Board shall consist of seven (7) trustees, as follows: 1. The Fire Chief, who shall serve by virtue of rank; and 2. Six (6) sworn members of the Mount Prospect Fire Department, who shall be elected at large by the sworn members of the Department. If there is an insufficient number of candidates to fill all trustee positions, the number of trustees may be reduced, but shall not be fewer than three (3) trustees. All sworn members of the Department shall be eligible to be elected as trustees of the Foreign Fire Insurance Board. 2068873_1 B. Officers The trustees shall annually elect officers from among themselves. Officers shall include Chairperson, Vice Chairperson, Treasurer, and Secretary The Foreign Fire Insurance Board may establish additional officer positions as it deems necessary. C. Term of Office Each trustee, except the Fire Chief, shall serve a two (2) year term, and until a successor assumes office. Initial terms of office shall begin thirty (30) days following completion of the election. A trustee shall be automatically removed from the Board upon resignation, retirement, or discharge from the Department, and the position shall be deemed vacant. D. Vacancies Vacancies on the Foreign Fire Insurance Board shall be filled by election of the sworn members of the Department for the balance of the unexpired term. Any person elected to fill a vacancy shall assume office immediately upon completion of the election. E. Election Procedures: 1. Temporary Election Procedure There is hereby established a temporary election committee consisting of five (5) sworn members of the Department. The Fire Chief shall serve as a member and as chairperson of the committee. The committee shall be responsible for organizing, conducting, and supervising the initial election of trustees. 2. Permanent Election Procedure The Foreign Fire Insurance Board shall adopt procedures governing the nomination and election of trustees consistent with this Article and State law. All rules and regulations with respect to the election process shall be posted throughout the Department a minimum of thirty (30) days prior to an election. SECTION FIVE: Section 5.1604, "Powers and Duties" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1604: POWERS AND DUTIES 2068873_1 The Foreign Fire Insurance Board shall have all powers granted under State law and shall have the authority to: A. Make all needful rules and regulations with respect to the governance of the Mount Prospect Foreign Fire Insurance Board and the management of funds paid to the Board; B. Develop and maintain a listing of those items and services that the Board determines are appropriate expenditures under 65 ILCS 5/11-10-2; C. Receive, administer, and expend foreign fire insurance license fee proceeds, which shall be set apart as a separate fund for use by the Board; D. Approve expenditures solely for the maintenance, use, and benefit of the Mount Prospect Fire Department, as authorized by State law; E. Contract for the purchase of goods and services, including accounting, legal, collection, or other professional services necessary to carry out the Board's statutory duties; F. Ensure that all contracts and purchases made by the Board comply with the Village of Mount Prospect's generally applicable ordinances, rules, procedures, and procurement policies concerning the expenditure of municipal funds, including competitive bidding and conflict -of -interest requirements, provided that such compliance shall not be construed to require Village approval of expenditures or otherwise limit the Board's authority to contract as granted under State law; G. Provide that the funds administered by the Board shall be annually reviewed as part of the Village's audit to verify that expenditures were made lawfully and solely for the maintenance, use, and benefit of the Fire Department; and H. Provide that the Treasurer of the Board shall receive all funds paid pursuant to this Article and shall disburse such funds upon the order of the Board, in a manner consistent with applicable procurement requirements. 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. SECTION SIX: Section 5.1605, "Quorum; Special Meetings" of the Village Code is 2068873_1 hereby renamed and repealed in its entirety and replaced with the following: 5.1605: MEETINGS; QUORUM; SPECIAL MEETINGS A. Meetings The Foreign Fire Insurance Board shall establish a regular time and place for its meetings and shall conduct its meetings in accordance with the Illinois Open Meetings Act (5 ILCS 120 /2.01). B. Quorum Except as otherwise provided herein, four (4) trustees shall constitute a quorum for the transaction of business. In the event the number of trustees serving on the Board is fewer than seven (7), the following quorum requirements shall apply: 1. For a Board composed of six (6) trustees, four (4) trustees shall constitute a quorum; 2. For a Board composed of five (5) trustees, three (3) trustees shall constitute a quorum; 3. For a Board composed of four (4) trustees, three (3) trustees shall constitute a quorum; and 4. For a Board composed of three (3) trustees, all three (3) trustees shall be present to constitute a quorum. C. Special Meetings The Chairperson may call a special meeting at any time, subject to the requirements of the Illinois Open Meetings Act. A special meeting may also be called upon written notice signed by three (3) trustees. Such notice shall describe, in brief, the nature or object of the special meeting. SECTION SEVEN: Section 5.1606, "Use of Funds" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1606: USE OF FUNDS Funds administered by the Foreign Fire Insurance Board may be used solely for the maintenance, use, and benefit of the Mount Prospect Fire Department, as authorized by State law. 2068873_1 No funds shall be used for the personal benefit of any individual, or for any use or function not directly related to the Fire Department. Funds shall not be used for parties, alcoholic beverages, or any activity that violates Fire Department policies, Village policies, or applicable law. SECTION EIGHT: Section 5.1607, "Foreign Fire Insurance Tax Imposed" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1607: FOREIGN FIRE INSURANCE TAX IMPOSED Every corporation, company, or association not incorporated under the laws of the State of Illinois and engaged in effecting fire insurance upon property situated within the Village shall pay to the Foreign Fire Insurance Board, for the maintenance, use, and benefit of the Fire Department, a license fee equal to two percent (2%) of the gross receipts received from fire insurance upon property located within the Village. Each such corporation, company, or association shall pay the amount prescribed by this Section upon all premiums received during the year ending on the first day of July for all fire insurance effected or agreed to be effected on property situated within the Village. Every person acting within the Village as an agent, or otherwise, on behalf of any such corporation, company, or association shall, on or before July 15 of each year, render to the Treasurer of the Foreign Fire Insurance Board or the Board's authorized designee a full and true account, verified by oath, of all premiums received during the preceding year ending July 1. The agent shall specify the amounts received for fire insurance and shall pay, at the time of rendering such report, the sum due under this Section. If such account is not rendered on or before July 15, or if the sum due remains unpaid after that date, it shall be unlawful for the corporation, company, or association in default to transact any fire insurance business within the Village until the amount due has been fully paid. This provision shall not relieve any such corporation, company, or association from payment of any loss upon any risk taken in violation of this requirement. The amount of the license fee may be recovered from the corporation, company, association, or any third party owing the fee, or from its agent, by an action brought by the Foreign Fire Insurance Board. The Foreign Fire Insurance Board or its 2068873_1 authorized designee may examine the books, records, and other documents of any agent, corporation, company, or association for the purpose of verifying the correctness of any report required under this Section. This Section applies to receipts from contracts of marine fire insurance. A Foreign Fire Insurance Board aggrieved by a violation of this Section may file suit in the Circuit Court of the county in which the alleged violation occurred. The regulation of a foreign fire insurance board and its license fees are exclusive powers and functions of the State of Illinois. A home rule municipality may not regulate a foreign fire insurance board or its license fees. This Section constitutes a denial and limitation of home rule powers and functions pursuant to subsection (h) of Section 6 of Article VII of the Illinois Constitution. (Source: 651LCS 5/11-10-1(c), as amended by P.A. 102-740, effective January 1, 2023.) SECTION NINE: Section 5.1608, "Account" of the Village Code is hereby renamed and repealed in its entirety and replaced with the following: 5.1608: ACCOUNTING AND PAYMENT Every person acting as a representative for or on behalf of any corporation, company, or association subject to this Article shall, on or before July 15 of each year, render to the Treasurer of the Foreign Fire Insurance Board or the Board's authorized designee a full, true, and just account, verified by oath, of all premiums received during the preceding year ending July 1 on fire insurance policies covering property located within the Village. At the time of rendering such report, the agent shall pay the amount due to the Treasurer of the Foreign Fire Insurance Board or the Board's authorized designee, in accordance with this Article and State law. SECTION TEN: Section 5.1609, "Failure to Account Or Pay Tax" of the Village Code is hereby repealed in its entirety, renamed and replaced with the following: 5.1609: DISPUTE RESOLUTION — BINDING ARBITRATION Any dispute between the Fire Chief and the remaining members of the Foreign Fire Insurance Board concerning whether a proposed or approved expenditure of funds is for the maintenance, use, or benefit of the Fire Department, or is otherwise authorized under 65 ILCS 5/11-10-2, shall be resolved through 2068873_1 binding arbitration. The Foreign Fire Insurance Board shall adopt a written arbitration agreement governing such disputes. Any arbitration conducted pursuant to this Section shall be recognized under and conducted in accordance with the Illinois Uniform Arbitration Act. Binding arbitration shall be the exclusive remedy available for resolving disputes described in this Section. No appeal to the Village Board, Village Manager, or any other municipal body shall be permitted for such disputes. SECTION ELEVEN: Section 5.1610, "Marine Insurance" of the Village Code is hereby repealed in its entirety, renamed "Failure to Account Or Pay Tax", and replaced with the following: 5.1610: FAILURE TO ACCOUNT OR PAY TAX If the required account is not rendered on or before July 15 of each year, or if the amount due remains unpaid after that date, it shall be unlawful for any corporation, company, or association in default to transact fire insurance business within the Village until the amount due has been fully paid. This provision shall not relieve any corporation, company, or association from payment of any loss upon any risk taken in violation of this Article. SECTION TWELVE: Section 5.1611 shall be created, "Marine Insurance" to read as follows: 5.1611: MARINE INSURANCE This subsection shall be applicable to receipts from contracts of marine fire insurance. SECTION THIRTEEN: That 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: 2068873_1 ABSENT: PASSED and APPROVED this 3rd day of February, 2026 Paul Wm. Hoefert, Mayor ATTEST: Karen M. Agoranos, Village Clerk 2068873_1 Ordinance No. t.nr.a^nde -cl T i-.61.f - Formatted: Character scale:100%, Not Expanded by/ - - - - - - \ Condensed by ................................................................................................................ Formatted Normal Indent Left 0 Space Before 0 pt Allow hanging punctuation AN ORDINANCE AMENDING CHAPTER 5, "BOARD AND COMMISSIONS", ARTICLE XVI, "FOREIGN FIRE INSURANCE TAX BOARD" OF THE VILLAGE CODE OF MOUNT PROSPECT WHEREAS, the Village of Mount Prospect (the "Village") is a home rule Illinois Municipal Corporation pursuant to Article VII, § 6 of the Illinois Constitution of 1970; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect desire to make certain amendments to the Village Code of Mount Prospect (the "Village Code") as set forth below; and WHEREAS, pursuant to its authority granted 'under Article VII, § 6 of the Illinois Constitution, the President and Board of Trustees of the Village of Mount Prospect find it in the best interest of the Village, the Village residents, and the public health, safety and welfare to amend the Village Code asset forth below. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE` OF MOUNT PROSPECT, COUNTY OF COOK, STATE OF ILLINOIS AS FOLLOWS: SECTION ONE: Article XVI (Foreign Fire Insurance Tax Board) of Chapter 5 (Boards and Commissions), of the Village Code of Mount Prospect shall be amended to read as follows: Article XVI, "FOREIGN FIRE INSURANCE BOARD" of Chapter 5 (Boards and Commissions) of the Village Code of Mount Prospect SECTION TWO: Section 5.1600, "Definitions" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1600: CREATION AND PURPOSE: There is hereby established the Mount Prospect Foreign Fire Insurance Board. The Foreign Fire Insurance Board shall exercise the powers and duties provided herein consistent with 65 ILCS 5/11-10-1 through 11-10-3 and 11-10-2.5, as amended. The purpose of the Foreign Fire Insurance Board is to receive, administer, and expend foreign fire insurance license fee proceeds solely for the maintenance, use, and benefit of the Mount Prospect Fire Department, as authorized by State law. SECTION THREE: Section 5.1602, "Definitions" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1602: DEFINITIONS: Sworn Member shall mean a member of the Mount Prospect Fire Department who has taken an oath of office Department shall mean Mount Prospect Fire Department Fund shall mean the Foreign Fire Insurance Tax Fund Board shall mean the Mount Prospect Foreign Fire Insurance Board SECTION FOUR Section 5.1603, "Organization" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1603: ORGANIZATION A. Membership The Foreign Fire Insurance Board shall consist of seven (7) trustees, as follows: 1. The Fire Chief, who shall serve by virtue of rank; and 2. Six (6) sworn members of the Mount Prospect Fire Department, who shall be elected at large by the sworn members of the Department. If there is an insufficient number of candidates to fill all trustee positions, the number of trustees may be reduced, but shall not be fewer than three (3) trustees. All sworn members of the Department shall be eligible to be elected as trustees of the Foreign Fire Insurance Board. B. Officers The trustees shall annually elect officers from among themselves. Officers shall include Chairperson, Vice Chairperson, Treasurer, and Secretary The Foreign Fire Insurance Board may establish additional officer positions as it deems necessary. (;. Villa(rye i...iaison: The village finance dirEKtor car designee shall serve as the .......................................R.a..........................................................................................................R.a............................................................._.._.._.._..�._._._..C]..................8........................................................................................................... vI af�e s aison to the )oarr . ...................................................................................................................................................................... P.C. Term of Office Each trustee, except the Fire Chief, shall serve a two (2) year term, and until a successor assumes office. Initial terms of office shall begin thirty (30) days following completion of the election. A trustee shall be automatically removed from the Board upon resignation, retirement, or discharge from the Department, and the position shall be deemed vacant. E.D. Vacancies Vacancies on the Foreign Fire Insurance Board shall be filled by election of the sworn members of the Department for the balance of the unexpired term. Any person elected to fill a vacancy shall assume office immediately upon completion of the election. FC. Election Procedures: 1. Temporary Election Procedure There is hereby established a temporary election committee consisting of five (5) sworn members of the Department. The Fire Chief shall serve as a member and as chairperson of the committee. The committee shall be responsible for organizing, conducting, and supervising the initial election of trustees. 2. Permanent Election Procedure The Foreign Fire Insurance Board shall adopt procedures governing the nomination and election of trustees consistent with this Article and State law. All rules and regulations with respect to the election process shall be posted throughout the Department a minimum of thirty (30) days prior to an election. SECTION FIVE: Section 5.1604, "Powers and Duties" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1604: POWERS AND DUTIES The Foreign Fire Insurance Board shall have all powers granted under State law and shall have the authority to: A. Make all needful rules and regulations with respect to the governance of the Mount Prospect Foreign Fire Insurance Board and the management of funds paid to the Board; B. Develop and maintain a listing of those items and services that the Board determines are appropriate expenditures under 65 ILCS 5/11-10-2; C. Receive, administer, and expend foreign fire insurance license fee proceeds, which shall be set apart as a separate fund for use by the Board; D. Approve expenditures solely for the maintenance, use, and benefit of the Mount Prospect Fire Department, as authorized by State law; E. Contract for the purchase of goods and services, including accounting, legal, collection, or other professional services necessary to carry out the Board's statutory duties; F. Ensure that all contracts and purchases made by the Board comply with the Village of Mount Prospect's generally applicable ordinances, rules, procedures, and procurement policies concerning the expenditure of municipal funds, including competitive bidding and conflict -of -interest requirements, provided that such compliance shall not be construed to require Village approval of expenditures or otherwise limit the Board's authority to contract as granted under State law; G. Provide that the funds administered by the Board shall be annually reviewed as part of the Village's audit to verify that expenditures were made lawfully and solely for the maintenance, use, and benefit of the Fire Department; and H. Provide that the Treasurer of the Board shall receive all funds paid pursuant to this Article and shall disburse such funds upon the order of the Board, in a manner consistent with applicable procurement requirements. 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. SECTION SIX: Section 5.1605, "Quorum; Special Meetings" of the Village Code is hereby renamed and repealed in its entirety and replaced with the following: 5.1605: MEETINGS; QUORUM; SPECIAL MEETINGS A. Meetings The Foreign Fire Insurance Board shall establish a regular time and place for its meetings and shall conduct its meetings in accordance with the Illinois Open Meetings Act (5 1 LCS 120 /2.01). B. Quorum Except as otherwise provided herein, four (4) trustees shall constitute a quorum for the transaction of business. In the event the number of trustees serving on the Board is fewer than seven (7), the following quorum requirements shall apply: 1. For a Board composed of six (6) trustees, four (4) trustees shall constitute a quorum; 2. For a Board composed of five (5) trustees, three (3) trustees shall constitute a quorum; 3. For a Board composed of four (4) trustees, three (3) trustees shall constitute a quorum; and 4. For a Board composed of three (3) trustees, all three (3) trustees shall be present to constitute a quorum. C. Special Meetings The Chairperson may call a special meeting at any time, subject to the requirements of the Illinois Open Meetings Act. A special meeting may also be called upon written notice signed by three (3) trustees. Such notice shall describe, in brief, the nature or object of the special meeting. SECTION SEVEN: Section 5.1606, "Use of Funds" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1606: USE OF FUNDS Funds administered by the Foreign Fire Insurance Board maybe used solely for the maintenance, use, and benefit of the Mount Prospect Fire Department, as authorized by State law. No funds shall be used for the personal benefit of any individual, or for any use or function not directly related to the Fire Department. Funds shall not be used for parties, alcoholic beverages, or any activity that violates Fire Department policies, Village policies, or applicable law. SECTION EIGHT: Section 5.1607, "Foreign Fire Insurance Tax Imposed" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1607: FOREIGN FIRE INSURANCE TAX IMPOSED Every corporation, company, or association not incorporated under the laws of the State of Illinois and engaged in effecting fire insurance upon property situated within the Village shall pay to the Foreign Fire Insurance Board, for the maintenance, use, and benefit of the Fire Department, a license fee equal to two percent (2%) of the gross receipts received from fire insurance upon property located within the Village. Each such corporation, company, or association shall pay the amount prescribed by this Section upon all premiums received during the year ending on the first day of July for all fire insurance effected or agreed to be effected on property situated within the Village. Every person acting within the Village as an agent, or otherwise, on behalf of any such corporation, company, or association shall, on or before July 15 of each year, render to the Treasurer of the Foreign Fire Insurance Board or the Board's authorized designee a full and true account, verified by oath, of all premiums received during the preceding year ending July 1. The agent shall specify the amounts received for fire insurance and shall pay, at the time of rendering such report, the sum due under this Section. If such account is not rendered on or before July 15, or if the sum due remains unpaid after that date, it shall be unlawful for the corporation, company, or association in default to transact any fire insurance business within the Village until the amount due has been fully paid. This provision shall not relieve any such corporation, company, or association from payment of any loss upon any risk taken in violation of this requirement. The amount of the license fee may be recovered from the corporation, company, association, or any third party owing the fee, or from its agent, by an action brought by the Foreign Fire Insurance Board. The Foreign Fire Insurance Board or its authorized designee may examine the books, records, and other documents of any agent, corporation, company, or association for the purpose of verifying the correctness of any report required under this Section. This Section applies to receipts from contracts of marine fire insurance. A Foreign Fire Insurance Board aggrieved by a violation of this Section may file suit in the Circuit Court of the county in which the alleged violation occurred. The regulation of a foreign fire insurance board and its license fees are exclusive powers and functions of the State of Illinois. A home rule municipality may not regulate a foreign fire insurance board or its license fees. This Section constitutes a denial and limitation of home rule powers and functions pursuant to subsection (h) of Section 6 of Article VII of the Illinois Constitution. (Source: 651LCS 5/11-10-1(e), as amended by P.A. 102-740, effective January 1, 2023.) SECTION NINE: Section 5.1608, "Account" of the Village Code is hereby renamed and repealed in its entirety and replaced with the following: 5.1608: ACCOUNTING AND PAYMENT Every person acting as a representative for or on behalf of any corporation, company, or association subject to this Article shall, on or before July 15 of each year, render to the Treasurer of the Foreign Fire Insurance Board or the Board's authorized designee a full, true, and just account, verified by oath, of all premiums received during the preceding year ending July 1 on fire insurance policies covering property located within the Village. At the time of rendering such report, the agent shall pay the amount due to the Treasurer of the Foreign Fire Insurance Board or the Board's authorized designee, in accordance with this Article and State law. SECTION TEN: Section 5.1609, "Failure to Account Or Pay Tax' of the Village Code is hereby repealed in its entirety, renamed and replaced with the following: 5.1609: DISPUTE RESOLUTION — BINDING ARBITRATION Any dispute between the Fire Chief and the remaining members of the Foreign Fire Insurance Board concerning whether a proposed or approved expenditure of funds is for the maintenance, use, or benefit of the Fire Department, or is otherwise authorized under 65 ILCS 5/11-10-2, shall be resolved through binding arbitration. The Foreign Fire Insurance Board shall adopt a written arbitration agreement governing such disputes. Any arbitration conducted pursuant to this Section shall be recognized under and conducted in accordance with the Illinois Uniform Arbitration Act. Binding arbitration shall be the exclusive remedy available for resolving disputes described in this Section. No appeal to the Village Board, Village Manager, or any other municipal body shall be permitted for such disputes. SECTION ELEVEN: Section 5.1610, "Marine Insurance" of the Village Code is hereby repealed in its entirety, renamed "Failure to Account Or Pay Tax', and replaced with the following: 5.1610: FAILURE TO ACCOUNT OR PAY TAX If the required account is not rendered on or before July 15 of each year, or if the amount due remains unpaid after that date, it shall be unlawful for any corporation, company, or association in default to transact fire insurance business within the Village until the amount due has been fully paid. This provision shall not relieve any corporation, company, or association from payment of any loss upon any risk taken in violation of this Article. SECTION TWELVE: Section 5.1611 shall be created, "Marine Insurance" to read as follows: 5.1611: MARINE INSURANCE This subsection shall be applicable to receipts from contracts of marine fire insurance. SECTION THIRTEEN: That 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 3rd day of February, 2026 Paul Wm. Hoefert, Mayor ATTEST: Karen M. Agoranos, Village Clerk