09289348.
MINUTES OF THE SPECIAL MEETING OF THE
CITY COUNCIL OF THE CITY OF DES PLAINES,
ILLINOIS, HELD IN THE ELEANOR ROHRBACH
MEMORIAL COUNCIL CHAMBERS, DES PLAINES
CIVIC CENTER, TUESDAY, SEPTEMBER 281 1993
CALL TO ORDER: The Special Meeting of the City Council of the City of
Des Plaines was called to order by Mayor Ted Sherwood at
7:00 p.m. in the Eleanor Rohrbach Memorial Council
Chambers, Des Plaines Civic Center on Tuesday, September
28 I 1993 •
ROLL CALL: Roll call indicated the following aldermen present:
Beauvais, Christiansen, Elstner, Kisslinger, Curley,
Sarlo, Haupt. Alderman Chiropolos was absent. Alderman
Chiropolos arrived at 7:05 p.m.
Also present was: City Manager Douthwaite, City Comptroller Peters, City
Engineer Oakley and Fire Chief Farinella.
PURPOSE:
VEHICLE TAGS:
REAL ESTATE
TRANSFER
TAX:
Mayor Sherwood announced that the purpose of the Special
Meeting was:
1. REVENUE ALTERNATIVES:
a. Vehicle Tags
b. Real Estate Transfer Tax
c. Hotel/Motel Tax
d. Package Liquor Tax
2. HOME RULE SALES TAX
a. Consideration/adoption of Ordinance M-50-93
Mayor Sherwood declared that the City council was now
resolved into a committee of the Whole.
FINANCE & ADMINISTRATION Alderman Haupt, Chair
Comptroller Peters briefly reviewed his memo of July 22,
1993, regarding this matter, in which he outlined several
alternatives to the present charges, i.e. increasing the
present fee from $15 to $25, increasing the fine
associated with not having a vehicle sticker after July
1st of each year (currently $2 O) or increasing the
differential cost of the sticker purchased after July 1st
(currently $5). Comptroller Peters also suggested
another option of eliminating the vehicle tag charge
completely and increase the property tax for an estimated
yearly cost to a homeowner of $13.50, which is also tax
deductable.
Mr. Ralph Martin, 745 Marcella Road, addressed the
Council and spoke against increasing the property tax for
this purpose.
Mr. Pat Shuman, 525 Dulles Road, addressed the Council
and strongly suggested that the fine for vehicle tag
violators be raised to $100.
Following discussion, moved by Haupt, seconded by Sarlo,
that increase in vehicle tag charge not be considered for
funding the Capital Improvement Program. Motion declared
carried. Alderman Chiropolos voted no.
Comptroller Peters stated that the City received $186,439
in revenues from the $1.00/per $1,000 sale price tax in
1992; if the City increased that to $2.00, one can assume
an additional $175, 000 (approximately); if the City
increased that to $3.00, the City would receive
approximately $350,000 in additional revenues.
Mrs. Cleo Herman, 1948 Big Bend Drive, addressed the
Council and spoke in opposition of an increase in the
Real Estate Transfer Tax.
Mr. Ralph Martin, 745 Marcella Road, addressed the
Council and spoke in opposition of an increase in the
Real Eatate Transfer Tax.
REAL ESTATE
TRANSFER
TAX
(Cont'd.)
HOTEL/MOTEL
TAX:
PACKAGE
LIQUOR TAX:
ORDINANCE
M-50-93
HOME RULE
SALES TAX:
49.
9/28/93
PAGE TWO
Following discussion, moved by Haupt, seconded by Sarlo,
that increasing the Real Estate Transfer Tax not be
considered for funding the Capital Improvement Program.
Motion declared carried. Alderman Chiropolos voted no.
Comptroller Peters stated that the City's current rate
is 3% and approximately $100,000 is generated for each
1% increment in the tax; this is in addition to the
State-mandated 6%.
Mr. Greg Johnson, Travelodge Chicago O'Hare, 3003
Mannheim Road, addressed the Council and spoke in
opposition of increasing the Hotel/Motel Tax.
Mr. Car 1 Swanson, Comf art Inn-0 'Hare, 2175 E. Touhy
Avenue, addressed the Council and spoke in opposition of
increasing the Hotel/Motel Tax.
Ms. Michaelene Guerrieri, Holiday Inn-O'Hare Mannheim,
Mannheim Road & Touhy Avenue, addressed the Council and
spoke in opposition of increasing the Hotel/Motel Tax.
Following discussion, moved by Haupt, seconded by
Chiropolos, that increasing the Hotel/Motel Tax not be
considered for funding the Capital Improvement Program.
Motion declared carried.
Comptroller Peters stated that the City does not
currently have a Package Liquor Tax and since no specific
numbers are available from the State on packaged liquor
sales, one can only use Park Ridge's revenues of $93,892
in 1992 from a 2% tax and estimate an increase to Des
Plaines of approximately $300,000 annually.
Following discussion, moved by Curley, seconded by Sarlo,
that establishing a Package Liquor Tax not be considered
for funding the Capital Improvement Program. Motion
declared carried.
Mayor Sherwood assumed the chair, and declared the City
council back in session.
Moved by Haupt, seconded by Sarlo, that the City impose
a Home Rule Sales Tax of one half of one percent (1/2%)
and Ordinance M-50-93 be adopted at appropriate time this
evening; and further authorize Interim City Attorney to
draft necessary ordinance earmarking the monies collected
for the Capital Improvement Fund only (approval of this
ordinance by the City Council will come under Consent
Agenda on October 4, 1993). Upon roll call, the vote
was:
AYES: 8-Beauvais, Christiansen, Elstner, Kisslinger,
Curley, Sarlo, Chiropolos, Haupt
NAYS: 0-None
ABSENT: 0-None
Motion declared carried.
Moved by Haupt, seconded by Sarlo, to waive First Reading
and place on passage Ordinance M-50-93. Motion declared
carried.
Moved by Christiansen, seconded by Beauvais, to adopt
Ordinance M-50-93, AN ORDINANCE AMENDING TITLE V
"BUSINESS REGULATIONS" OF THE CITY CODE OF DES PLAINES,
TO ADD A NEW CHAPTER 42 "HOME RULE RETAILERS' AND SERVICE
OCCUPATION TAX." Upon roll call, the vote was:
AYES: 8-Beauvais, Christiansen, Elstner, Kisslinger,
Curley, Sarlo, Chiropolos, Haupt
NAYS: 0-None
ABSENT: 0-None
Motion declared carried.
UTILITY
TAX:
ADJOURNMENT:
50.
9/28/93
PAGE THREE
Moved by Haupt, seconded by Chiropolos, that the City
impose a 1% Utility Tax for the Capital Improvement Fund,
and Interim City Attorney be authorized to draft
necessary ordinance. Upon roll call, the vote was:
AYES: 5-Elstner, Kisslinger, Curley, Chiropolos,
Haupt
NAYS: 3-Beauvais, Christiansen, Sarlo
ABSENT: 0-None
Motion declared carried.
Moved by Beauvais, seconded by Christiansen, that the
Special Meeting of the City Council adjourn. Motion
declared carried. Meeting adjourned at 9:13 p.m.
Donna McAllister, CMC/ AAE -CITY CLERK
APPROVED BY ME THIS
~,1993
-" ., rz!J~--~-
Ted Sherwood, MAYOR