FINANCE AND ADMINISTRATION
MINUTES
April 24, 2006
Minutes of a regular meeting of the Finance and Administration Committee of the City of O’Fallon, held in the Mayor’s Conference Room, City Hall, 255 S. Lincoln, O’Fallon, Illinois on April 24, 2006. CALL TO ORDER: Time: 5:30 p.m.
ROLL CALL: MEMBERS _Medford - X____ _Reckamp - X ____
_West - X____ _Drolet - X_____
_Grogan - X____
STAFF LIAISON: Dean Rich, Pam Funk, Walter Denton, Alderman Albrecht, True, Henry and Schmitt .
Approval of the minutes from March 27, 2006____ __________________________
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Item 1 Sister City Proposal
Alderman True reported that the City has sent in its registration and he will be attending a State Convention of Sister Cities in Springfield this week. He is working to get a list of available sister cities and will report back next month.
Item 2 Economic Development Assistance - Subaru
Mr. John Hanna has requested economic assistance under the City’s Policies Providing Development Funding Assistance. He has experienced a 34% increase in cost on this project in the past eight months and has just broken ground. The Director of Finance reviewed his cost increases, the history of the City’s 14 previous agreements and recommended a $150,000, 50/50, 10 year agreement. Alderman Reckamp did not agree with the proposal and did not want to give Subaru an incentive. Alderman Medford made a motion to give Subaru the proposed agreement, second by Grogan, 4 yes, 1 no.
Item 3 Hotel/Motel Room Tax Ordinance Revision
The city was notified it has reached home rule status and wishes to revise its Hotel/Motel Room Tax to a Home Rule designation and increase the rate from 3% to 5%. Under the non-home rule ordinance use of these funds were limited to advertising. The city is building a Family Sports Park that will bring in regional sports tournaments that will increase use of the City’s hotels and motels and wishes to use the room tax to develop the park. Motion to move the revision to council by Reckamp seconded by Drolet, all ayes.
Item 4 Non-Home Rule ½ Cent Sales Tax Replacement
As the city has received Home Rule status it is necessary to replace the non-home rule ½ cent sales tax ordinance with a new Home Rule ½ Cent Sales Tax Ordinance. No changes will be made in the rate. The ordinance is under review by the City’s bond council, Kurt Frohlich and will be ready for council vote at the May 15, 2006 meeting. Motion to place on May 15, 2006 council made by Grogan, seconded by Medford, all ayes.
Item 5 Food & Beverage Tax
In order to efficiently sell a Capital Improvement Bond to finance the first phase of the Family Sports Park and other infrastructure needs, the city needs to raise additional revenue. Both Fairview Heights and Belleville have a 1% Food and Beverage Tax and Illinois Department of Revenue data indicates a 1% tax in O’Fallon would produce $400,000 a year. Staff proposed using the Fairview Heights ordinance as a model as it has worked for a number of years. Alderman Drolet objected to collecting a food tax as it would be bad for business. Alderman Reckamp made the motion to pass the ordinance to council for full consideration seconded by Medford, 4 yes, 1 no.
Item 6 Call for Help Request for Assistance
Call for Help Incorporation, a United Way Agency, a sexual assault and victims care unit used by the City’s Police Department for referrals, asked for financial assistance. The unit is facing an annual deficit of $55,000 and asked the city for a $5,000 pledge of support. While the committee was favorable to Call for Help, they would like additional information before approving the request. Director of Finance will obtain additional information and report back in May.
ADJOURNMENT: 5:58 p.m._________ PREPARED BY: ___Dean Rich _
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