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G-684 - 10/09/2001 - TAX - Ordinances Supporting DocumentsoF Oq�� P � 9 O y G r ��UNT`l VILLAGE OF OAK BROOK Village Board Transmittal Memorandum DATE: October 4, 2001 SUBJECT: Tax Rate Increases FROM: Darrell Langlois, Finance Director R RECOMMENDATION: 1. That the Village Board approve the attached ordinance which increases the Municipal Telecommunications Tax imposed under Chapter 3, Title 5 of the Village Code of the Village of Oak Brook from 3% to 5 %. 2. That the Village Board approve the attached ordinance which increases the Municipal Utility Tax imposed under Chapter 1, Title 5 of the Village Code of the Village of Oak Brook from 3% to 4% and extends the "sunset" provision by one year to December 31, 2002. 3. That the Village Board approve the attached ordinance which increases the Municipal Electricity Tax for each of ten rate tiers imposed under Chapter 4, Title 5 of the Village Code of the Village of Oak Brook by 33.3% in order to generate an amount that approximates 4% of gross receipts. Pursuant to the recent discussions regarding the 2002 -2006 Five -Year Financial Plan, attached are three ordinances which put in place the revenue enhancement required under Option B -3. The revised rates have been made effective as of November 1, 2001 (the earliest date we could reasonably expect the utilities to implement the changes). As a reminder, the telecommunication tax increase of 2% will be deposited in the General Corporate Fund and the equivalent 1% increase in the utility tax and electricity tax will be deposited in the Equipment Replacement in order to fund the General Corporate Fund and Infrastructure Fund share of equipment replacement charges. Please let me know if you have any comments of questions. elecutelecomtaxincrease doc S. F. Trustee Korin voiced her opposition to the additional tax, although she agreed that businesses were drawn to the Village of Oak Brook because of the excellent services provided. She still felt the hiring of additional personnel was not prudent until there was a better feel for what revenues will do. Village Manager Veitch reiterated that it was still the plan not to hire any additional personnel (with the exception of minimal Library staff) until mid -year. Motion by Trustee Savino and seconded by Trustee Butler, to adopt Plan B-4 of the 2002 -2006 Five -Year Financial Plan which included a 5% utility tax and telecommunication tar. VOICE VOTE: Nays: Trustees Craig and Korin. Motion carried. S. B. 2. ORDINANCE 2001- TX- TELCOM -G -684 AN ORDINANCE FURTHER AMENDING ORDINANCE G -645 AN ORDINANCE IMPOSING A MUNICIPAL TELECOMMUNICATION TAX WITHIN THE VILLAGE OF OAK BROOK DUPAGE AND COOK COUNTIES, IL Pursuant to the recent discussions regarding the 2002 -2006 Five -Year Financial Plan, the three ordinances have been prepared to put in place the revenue enhancement required under Option B -3. The revised rates have been made effective as of November 1, 2001 (the earliest date the Village could reasonably expect the utilities to implement the changes). The telecommunication tat increase of 2% will be deposited in the General Corporate Fund, a 1% increase in the utility tax and electricity tax will be deposited in the Equipment Replacement Fund in order to fund the prior General Corporate Fund and Infrastructure Fund share of equipment replacement charges, and the additional 1% increase ,vill be deposited in the General Corporate Fund. Motion by Trustee Savino, seconded by Trustee Butler, to approve Ordinance 2001- TX- TELCOM -G -684 "An Ordinance Further Amending Ordinance G -645, An Ordinance Imposing a Municipal Telecommunication Tax Within the Village of Oak Brook, DuPage and Cook Counties, IL ", which increases the Municipal Telecommunications Tax imposed under Chapter 3, Title 5 of the Village Code of the Village of Oak Brook from 3% to 5% as presented and waive the full reading thereof. ROLL CALL VOTE: Ayes: 4 — Trustees Butler, Caleel, Korin and Savino Nays: 1 - Trustee Craig. Absent: 1 - Trustees Miologos. Motion carried. VILLAGE OF OAK BROOK Minutes Page 10 of 19 October 9, 2001 L� ORD # 01 -TX- TELCOM -G -6 84 AIMND G -645 - TELECOMNI TAX /E 0 F 0 q,� P 9 v � O O H G � 0OUNTI VILLAGE OF OAK BROOK 1200 OAK BROOK ROAD OAK BROOK, ILLINOIS 60523 -2255 PHONE- 630 990 -3000 October 10, 2001 FAX. 630 990 -0876 W E B S I T E: www oak -brook org STERLING CODIFIERS, INC. 7600 Mineral Drive, Suite 200 Coeur d'Alene, ID 83814 Attn: Robertson S. Rollins, General Manager Dear Rob: The Village Board, at their meeting of Tuesday, October 9, 2001, passed and approved: /RDINANCE 2001 -TX- TELCOM -G -684. AN ORDINANCE FURTHER AMENDING ORDINANCE G -645. "AN ORDINANCE IMPOSING A MUNICIPAL TELECOMMUNICATION TAX WITHIN THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, IL" ORDINANCE 2001- TX -UT -G -685, AN ORDINANCE FURTHER AMENDING ORDINANCE G-470 "AN ORDINANCE ESTABLISHING A UTILITY TAX WITHIN THE VILLAGE OF OAK BROOK DU PAGE AND COOK COUNTIES, ILLINOIS" -WON The above ordinances are being forwardedto you for inclusion in the Village Code of the Village of Oak Brook. I would appreciate your acknowledging receipt of this ordinance. Sincerely, 2 l M� Richard A Martens Village Attorney amm Enclosures