FINANCE AND ADMINISTRATION
MINUTES
Monday, May 22, 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 May 22, 2006. CALL TO ORDER: Time: 5:30 p.m.
ROLL CALL: MEMBERS _Medford - X____ _Reckamp - X ____
_West - ____ _Drolet - X_____
_Grogan - X____
STAFF LIAISON: Dean Rich, Walter Denton, Alderman Albrecht, Henry and Schmitt .
Approval of the minutes from April 24, 2006 Chairman West was excused _
and asked Alderman Medford to chair. _______________________
Item 1 Sister City Proposal
Alderman True was attending an IML training class and will report again at the June meeting.
Item 2 Home Rule Sales Tax Ordinance
The City became Home Rule April 7, 2006. The City has been informed that our non-home rule sales tax must be re-enacted as a Home Rule sales tax. City bond attorney, Kurt Frochlich has coordinated with the Illinois Department of Revenue and has rewritten the ordinance according to current statutes. The ordinances are materially the same and will continue at ½ cent per dollar and the revenue will continue to go for infrastructure as promised in the Prop S Referendum. Motion to put Home Rule Municipal Retailer’s/Service Occupation Taxes on first reading, by Grogan, seconded by Drolet, all ayes.
Item 3 Food & Beverage Tax
The Food and Beverage Tax passed to the council for vote on April 24th did not pass on May 2, 2006. The motion was reconsidered on May 15th and sent back to committee. The Director of Finance apologized to the committee and council for rushing this ordinance to council for vote without detailed use of the funds. The Food and Beverage tax will be one percent (1%) of the selling price of food and/or beverage sold by taverns, bars and food service establishments with a St. Clair County Food Service Sanatation Permit F-1 or F-4. It does not include ice cream parlors, catering, small businesses doing under $5,000 in food or beverage, farm produce stands and tax exempt/non-profits. The City of O’Fallon’s Food & Beverage Tax form is filled out
from information already on the Illinois Department of Revenue form all qualifying businesses must file monthly with the State. While the ordinance does include an enforcement clause, the City would only contact a business about this tax is there was a discrepancy between the amounts reported to the State versus the amount paid to O’Fallon.
The funds received from this tax will be used to fund a $6,000,000 bond. These bond proceeds will be used in an economic development project at the Shoppes at Greenmount. By the June 5th council meeting the Director of Finance will provide each alderman a detailed review of this development. Based on information provided to the committee and proposed for the full council, Alderman Reckamp moved, without commitment on his final vote, to move the Food and Beverage Tax back to council for first reading on June 5th, seconded by Medford, all ayes.
Item 4 Family Sports Park Bond Issue
The June 5th agenda will have a first reading for a $21.9 million bond issue. That is composed of a $6.3 million dollar reissue of the non-home rule ½ cent sales tax bond as a Home Rule reissue of Prop S, $8.5 million for the Family Sports Park supported by the recently approved 5% Hotel/Motel Tax and $6.0 million for the Shoppes of Greenmount Economic Development project supported by the 1% Food & Beverage Tax (pending approval). Fact sheet on the Bond Finance Plan was previously issued and is attached as a refresher of that data. Motion to forward Family Sports Park Bond Issue for first reading by Grogan, seconded by Medford, all ayes.
ADJOURNMENT: 6:03 p.m._________ PREPARED BY: ___Dean Rich _
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