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FINANCE AND ADMINISTRATION
MINUTES
Monday, March 26, 2007
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 March 26, 2007. CALL TO ORDER: Time: 5:30 p.m.
ROLL CALL: |
MEMBERS: |
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Medford - |
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Reckamp - |
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West - |
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Drolet - |
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Grogan - |
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STAFF LIASON: |
Dean Rich |
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Walter Denton |
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Pam Funk |
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Alderman Albrecht |
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Alderman Schmidt |
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Approval of the minutes from February 26, 2007
Item 1: SWIDA Bond Volume Cap. As a home rule city, O’Fallon is allocated a part of the State Industrial Revenue Bond based on per capita. If the City can not use the bond cap by May 1st of the issue year, it can transfer this amount to the Southwestern Illinois Development Authority (SWIDA) for use throughout the region. This year the City of placeCityO’Fallon’s volume cap is $2,138,175 and it must be used on a very narrow industrial definition in the Tax Reform Act of 1986. The City does not have a valid requirement for industrial revenue bonds, as defined, this year and staff recommended this amount be transferred to SWIDA for use within the region. This is not actual funds, but rather an
authority to issue credit for specific projects for which we have no valid requirement this year. MOTION: Medford; SECOND Grogan.
Item 2: Utility Tax. Director of Finance detailed for the Committee that the City of placeCityO’Fallon Utility Tax is a revenue neutral tax based on an Illinois Commerce Commission (ICC) Tariff. Municipal taxes do not increase/decrease as electricity rates change. Tax can only change when the actual kilowatt usage changes and then at a fixed tariff rate. The City of placeCityO’Fallon’s ICC Town Code is 3230 and the rate is .005265 with administrative fee for the first 2.000 kilowatt hours used and then is on a sliding scale going down to as little as .002935. The average rate is .005112 for all electricity used in O’Fallon. Records for the past five years verify that the Utility Tax is affected
by usage and is most influenced by weather, high in the Summer and Winter and significantly off in Spring and Fall. The City can not reap a Windfall Utility Tax as Ameren increases their rates from 30% up to 90%.
ADJOURNMENT: 6:05 p.m. PREPARED BY: Dean Rich
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