Minutes - 08/22/2002 - Board of TrusteesMINUTES OF THE AUGUST 22, 2002 SPECIAL
MEETING OF THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF OAK BROOK
APPROVED AS AMENDED ON SEPTEMBER 10, 2002.
1. CALL TO ORDER: CALL TO ORDER
The Special Meeting of the Village Board of Trustees was called to order by
President Bushy in the Samuel E. Dean Board Room of the Village Commons
at 7:32 p.m.
ROLL CALL: ROLL CALL
Village Clerk Linda Gonnella called the roll with the following persons
PRESENT: President Karen M. Bushy, Trustees Stelios Aktipis, George T.
Caleel, John W. Craig, Susan Chase Korin, Elaine Miologos and
Alfred P. Savino.
ABSENT: None.
IN ATTENDANCE: Michael A. Crotty, Acting Village Manager; Darrell J.
Langlois, Finance Director; Alice Filinovich, Accounting
Manager and Richard A. Martens, Village Attorney.
2. DISCUSSION OF PUBLIC ACT 92 -0739 — NON -HOME RULE LOCAL DISCUSSION - P.A.
92 -0739
SALES TAX
President Bushy explained that the special meeting was called to discuss Public
Act 92 -0739 and whether the Board wishes to place the question of a non -home
rules sales tax referendum to the voters for the November election. She stated
that a meeting was held with Bob Biggins, our new state representative, to
discuss this issue.
Trustee Caleel suggested that, by referendum, the Village could approve an
increase in the local sales tax to be used for infrastructure. He added that with
the recent amendment it could also be increased as long as it was used for tax
relief. Attorney Martens clarified that State Statute only speaks of property tax
relief and it would limit the Village to this only. Trustee Caleel then stated that
the Village does not appear to qualify for this form of tax.
President Bushy suggested speaking with legislators to discuss this matter
indicating a need to initiate legislation that might provide an alternative for
communities such as Oak Book who are non -home rule and have no property
tax. She stated that the Village has a huge commercial area to support in Oak
Brook and some help is needed from our legislators. She will lobby in
Springfield for support and asked any Board members to join her.
VILLAGE OF OAK BROOK Minutes Page 1 of 4 August 22, 2002
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2. Trustee Caleel suggested that other municipalities with similar circumstances
join our efforts. President Bushy stated that there are other municipalities and
she will seek their support and efforts in this matter.
Trustee Aktipis asked for a clarification that the use of the tax revenue be only
for public infrastructure. Village Attorney Martens indicated that this is
correct. Trustee Caleel suggested that any referendum question be crafted so
that the utility tax would be reduced according to the .50% sales tax.
Trustee Aktipis suggested that there are two options to follow. If an increase
was deemed urgent, then the referendum question was the direction to go and
the funds would be used for infrastructure. If it was possible to wait, he
suggested that the Illinois legislature be approached to craft a bill where the
sales tax revenue would not just be tied to infrastructure but to Village
operations.
Finance Director Langlois explained some of the projected expenses and
revenues in the Five -Year Financial Plan. Trustee Caleel stated his concern of
the legal nature of this tax. Village Attorney Martens indicated the Village
could go to referendum for the tax to be used for public infrastructure with a
stipulation that the tax be collected for a period of time and the Village would
not have to reduce any other taxes.
President Bushy suggested considering the .25% increase in the sales tax for a
period of one year for public infrastructure use.
Trustee Caleel offered that the Board could elect to increase the tax by .25%
and then decrease the amount of utility tax by 1% a year. Trustee Savino
voiced a concern of having two referendums. He suggested not to consider the
referendum but work with the legislators for new legislation.
Trustee Aktipis asked if a sales tax increase would affect sales in the Oak
Brook shopping center.
Trustee Miologos asked whether the excess revenue that would occur with a
sales tax increase for infrastructure could be used for improving the medians in
Oak Brook including installation of sprinkler systems.
Trustee Craig suggested consideration of reinstitution of free garbage pickup to
residents if there was an increase to sales tax.
President Bushy explained that anyone advocating for the referendum must be
of the Trustees own time, as the Village may only educate the public
concerning the facts and the reasons for the referendum.
VILLAGE OF OAK BROOK Minutes Page 2 of 4 August 22, 2002
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2. Trustee Caleel suggested using a sales tax increase for only one year and that
any excess funds in the Infrastructure Fund be used for the Library shortfall and
the new Village expansion expenses. He stated funding should be used to
offset the expenses of the Village expansion, other shortfalls and reduce the
utility taxes rather than subsidize garbage pickup. Trustee Aktipis also
suggested proceeding with a referendum of the sales tax increase for one year
and if it isn't needed rescind it next year.
Trustee Savino stated that he felt it was too complicated having a sales tax
increase for one year only and encouraged seeking legislative cooperation
through Springfield.
The Board concurred with Trustee Savino to seek legislators in Springfield for
their help to design legislation for non -home rule communities. President
Bushy will work with Senator Philip and Senator Cronin for legislation.
Trustee Caleel recommended that our legislators be made aware that the Village
is in dire financial straits of $5,000,000 debt, with no more reserves and
increasing contributions for pension fund needs, when the Village may only
increase the telecommunication tax by 1%. President Bushy suggested
contacting legislators first to see what would be required and then craft a letter
with Board concurrence of its content.
President Bushy also acknowledged a meeting between Senator Durbin and
municipalities needing an increase in revenues for municipal emergency
management training and overtime costs of personnel. She discussed the
potential availability of block grant funding from Homeland Security for this
also.
Trustee Korin asked that the Village instill tax relief by reducing the utility and
telecommunication tax if any legislation is successful.
Trustee Miologos suggested reducing the utility tax by 3 %, increasing the
telecommunication tax by 1% and going to referendum for the sales tax
increase.
Trustee Caleel summarized that the discussion was scheduled because of the
short time frame to file with the Counties if the Board wished to place a local
sales tax referendum on the ballot, but felt that the time frame was too fast. He
did not feel that the Board had enough time to understand how the funds could
be used and that the discussion indicated that the Board was not all of one
mind.
VILLAGE OF OAK BROOK Minutes Page 3 of 4 August 22, 2002
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3. DISCUSSION OF SIMPLIFIED TELECOMMUNICATIONS ACT DISCUSSION -TELE
COMMUNICATIONS
ACT
Trustee Savino suggested that since the deadline for filing for an increase in this
tax was September 30, 2002 that Finance Director Langlois provide information
that would guide the Board in the decision whether to increase the
telecommunications tax. Finance Director Langlois indicated that the issue
could be addressed within the context of the Five -Year Financial Plan with the
question as to whether the Board was comfortable getting very close to the
minimum six -month operating reserve next year, or whether the Board wished
to add personnel that has been removed from the plan. He added that the
passage of the ordinance to go forward would have to be addressed at the
September 24th meeting.
ADJOURNMENT:
Motion by Trustee Craig, seconded by Trustee Caleel, to adjourn the meeting at
9:10 p.m. VOICE VOTE: Motion carried.
ATTEST
Linda K. Gonnella, CMC
Village Clerk
VILLAGE OF OAK BROOK Minutes
Page 4 of 4 August 22, 2002
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