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CITY COUNCIL 11-20-1997THE CITY OF LAKE FOREST COUNCIL AGENDA November 20, 1997 CALL TO ORDER AND ROLL CALL Honorable Cornelius B. Waud, Mayor Samuel J. Henry, Alderman First Ward Gail T. Hodges, Alderman Third Ward John A. Andersen, Alderman First Ward Henry T. Chandler, Alderman Third Ward Howard J Kerr, Alderman Second Ward Mary Ann Pekarek, Alderman Fourth Ward Thomas J. Tropp, Alderman Second Ward G. Bishop Gallagher, Alderman Fourth Ward REPORTS OF CITY OFFICERS 1. Comments by Mayor A. Cancellation of December 18, 1997 City Council Meeting 2. Comments by the City Manager A. Department Spotlight - Public Works 3. Comments by Council Members A. Finance Committee Report 1. Consideration of an Ordinance Establishing the Tax Levy for 1997 (First Reading) PRESENTED BY FINANCE COMMITTEE CHAIRMAN JERRY HENRY The annual tax levy must be filed with the County Clerk before the last Tuesday in December. A report reviewing the tax levy for 1997 was reviewed in detail at the Finance Committee meeting held during the day on November 20, 1997. The tax levy to be approved includes the needs of all City departments, as well as for pensions and debt service requirements. In addition, the tax levy for School District 67 is included for your consideration. A summary of the proposed levies are as follows: Fund/Purpose 1996 Levy Proposed 1997 Levy Change 1996 - 1997 $ % City General $ 8,067,829 $ 8,394,427 $326,598 4.05% Pension Funds 1,848,878 1,849,532 654 0.04% Recreation Fund 756,359 781,318 24,959 3.30% Library Board 1,668,792 1,723,862 55,070 3.30% Debt Service Funds 2,329,105 2,270,425 (58,680) (2.52%) Sub-Total $14,670,963 $15,019,564 $348,601 2.38% Projected Growth 1997 NA 203,986 203,986 NA CITY TOTAL $14,670,963 $15,223,550 $552,587 3.77% School District 67 $15,516,203 $16,471,894 $955,691 6.19% GRAND TOTAL $30,187,166 $31,695,444 $1,508,278 5.00% The proposed tax levy for 1997 reflects a 3.8% increase over the 1996 tax levy extensions for the City, Recreation, and Library operating funds. This increase is in full compliance with the property tax cap limit of a 3.3% increase, plus new growth which is estimated at 1.6% Recommended Action: First reading approval of the proposed tax levy ordinance for 1997. (Staff Contact: Robert Shaffer 615-4222) 2. Consideration of Ordinances Relating to Abating 1997 Tax Levies for Various G.O. Bond Issues (First Reading) PRESENTED BY FINANCE COMMITTEE CHAIRMAN JERRY HENRY 1. An Ordinance Abating $35,720.00 of the Tax Being Levied in 1997 for the Annual Payment of the Principal and Interest of the 1992-C General Obligation Bond Issue ($1,325,720.00) 2. An Ordinance Abating $29,507.50 of the Total Tax Being Levied in 1997 for the Annual Payment of the Principal and Interest on the 1995 General Obligation Bond Issue ($329,507.50). These ordinances provide for the abatement of 1997 taxes levied for the various outstanding general obligation bond issues. The tax levies for all bond issues are established and recorded with the County Clerk at the time the bonds are issued. Therefore, in order to reduce the bond tax levies, an abatement ordinance must be approved and filed with the County Clerk before December 31, 1997. A summary of the proposed tax levy abatements are noted below: Bond Issue Original Tax Levy Tax Abatement Net Bond Tax Levy 1991B G.O. Bonds (Gen. Imp.) $ 106,000.00 $ 0 $ 106,000.00 1992C G.O. Bonds (Refunding) 1,325,720.00 35,720.00 1,290,000.00 1993A G.O. Bonds (Refunding) 574,425.00 0 574,425.00 1995 G.O. Bonds (Gen. Imp.) 329,507.50 29,507.50 300,000.00 TOTALS $2,335,652.50 $65,227.50 $2,270,425.00 Recommended Action: First reading approval of the ordinances abating tax levies for various general obligation bond issues. (Staff Contact Persons: Robert Shaffer 615-4222) 3. Abating 1997 Tax Levies for Various G.O. Alterate Revenue Bond Issues (First Reading) PRESENTED BY FINANCE COMMITTEE CHAIRMAN JERRY HENRY 1. An Ordinance Abating the Total Tax Being levied in 1997 for the Annual Payment of the Principal and Interest on the 1991A General Obligation TIF Bond Issue ($530,000.00). 2. An Ordinance Abating the Total Tax Being Levied in 1997 for the Annual Payment of the Principal and Interest on the 1992A General Obligation TIF Bond Issue ($182,175.00) 3. An Ordinance Abating the Total Tax Being Levied in 1997 for the Annual Payment of the Principal and Interest on the 1993B General Obligation TIF Bond Issue ($701,837.50). 4. An Ordinance Abating the Total Tax Being Levied in 1997 for the Annual Payment of the Principal and Interest on the 1997A General Obligation (WATERWORKS AND SEWERAGE SYSTEM) Bond Issue ($870,562.08). 5. An Ordinance Abating the Total Tax Being Levied in 1997 for the Annual Payment of the Principal and Interest on the 1997B General Obligation (PARKING DECK) Bond Issue ($152,652.85) These ordinances provide for the abatement of 1997 taxes levied for the various outstanding general obligation ALTERNATE REVENUE bond issues. The tax levies for all bond issues are established and recorded with the County Clerk at the time the bonds are issued. Therefore, in order to reduce the bond tax levies, an abatement ordinance must be approved and filed with the County Clerk before December 31, 1997. A summary of the proposed tax levy abatements are noted below: Bond Issue Original Tax Levy Tax Abatement Net Bond Tax Levy 1991A G.O. Bonds (TIF) $530,000.00 $530,000.00 $0 1992A G.O. Bonds (TIF) 182,175.00 182,175.00 0 1993B G.O. Bonds (TIF) 701,837.50 701,837.50 0 1997A G.O. Bonds (WATER) 870,562.08 870,562.08 0 1997B G.O. Bonds (PARKING) 152,652.85 152,652.85 0 TOTALS $2,437,227.43 $2,437,227.43 $0 The abatement of these general obligation (ALTERNATE REVENUE) bonds is possible due to the fact these bonds funds have an adequate revenue source from TIF district collections, water sales or parking charges. Therefore, the general obligation tax levy can be abated as planned at the time the bonds were issued. Recommended Action: First reading approval of the ordinances abating tax levies for various general obligation bond issues. (Staff Contact Persons: Robert Shaffer 615-4222). PUBLIC COMMENTS ON NON-AGENDA ITEMS APPROVAL OF MINUTES Recommended Action: Approval of the minutes of the November 3, 1997 Council meeting attached beginning on page 6. ORDINANCES 1. Consideration of an Ordinance Eliminating the Liquor License for Violina’s Restaurant Violina’s Restaurant has closed and it is necessary for that liquor license to be eliminated. It is the practice of the city not to have any available liquor licenses in effect at any time but to create them on an as-needed basis. This ordinance will void Violina’s license. Recommended Action: Waive first reading and grant final approval to an ordinance eliminating the liquor license for Violina Restaurant as attached on page 10. 2. Consideration of an Ordinance Imposing a Municipal Telecommunications Infrastructure Maintenance Fee (Waive First Reading, Grant Second and Final Approval) PRESENTED BY ASSISTANT TO THE CITY MANAGER MAX SLANKARD (615-4281) With the July 23, 1997 passage of Public Act 90-154, the Illinois General Assembly made a major change in the traditional methods used by municipalities to control the use of public rights-of-way by telecommunications companies. Effective January 1, 1998, the Act substantially eliminates the ability of municipalities to require telecommunications retailers to enter into franchise or license agreements and to pay negotiated fees for the use of public rights-of-way. The purpose of the Act was to abolish municipal franchise fees, to create a uniform system for the collection and distribution of fees, and to provide municipalities a comprehensive method of compensation for telecommunications activities. The City currently has in place a franchise agreement with Ameritech that provides for a franchise fee. The fee is set at $0.38 per access line per month, which totals approximately $68,000 annually. According to the provisions of the Act, in lieu of traditional franchise fees, municipalities may levy an “Infrastructure Maintenance Fee” (IMF) at a rate not to exceed one percent (1%) of gross revenues of the telecommunications retailers. A municipality may levy less than one percent, as long as it is done in quarter percent increments. In order to implement the fee, the City Council must pass an ordinance waiving its existing franchise fee and providing ninety days notice to telecommunications retailers of its intent to implement the new fee. Once the notice period concludes, the City no longer collects the franchise fee, and instead begins to collect the IMF. Attached as page 11 of the packet is the proposed ordinance. The attached ordinance is based upon a model ordinance created by the Illinois Municipal League Home Rule Attorneys Committee, in cooperation with the Northwest Municipal Conference. The ordinance was reviewed and approved by the City Attorney. Based upon the enaction of the ordinance at the maximum one percent rate, the City would lose the Ameritech franchise fee of approximately $68,000. In lieu of that, it is estimated that a one percent IMF would generate $180,000 per year. With the loss of the Ameritech revenue, this would lead to a net revenue of approximately $112,000. Recommended Action: Waive first reading, grant final approval to the ordinance as attached. UNFINISHED BUSINESS NEW BUSINESS 1. Grant of Easement to Ameritech PRESENTED BY ASSISTANT TO THE CITY MANAGER MAX SLANKARD (615-4281) Ameritech has requested an easement to install a vault in the Western Avenue right of way. The City Attorney has negotiated the easement, attached as page 22 of the packet. The easement provides for no compensation, as Ameritech is permitted under the franchise ordinance to install such facilities. Recommended Action: Grant easement as attached. OPPORTUNITY FOR THE PUBLIC TO ADDRESS THE CITY COUNCIL ADDITIONAL ITEMS FOR COUNCIL DISCUSSION EXECUTIVE SESSION ADJOURNMENT Office of the City Manager November 14, 1997 The City of Lake Forest is subject to the requirements of the Americans with Disabilities Act of 1990. Individuals with disabilities who plan to attend this meeting and who require certain accommodations in order to allow them to observe and/or participate in this meeting, or who have questions regarding the accessibility of the meeting or the facilities, are required to contact City Manager Robert R. Kiely, Jr., at (847) 234-2600 promptly to allow the City to make reasonable accommodations for those persons. blue\shell Agenda Memorandum - 11/14/97 Page 4