City of North Chicago Finance Committee met Dec. 16.
Here is the minutes provided by the committee:
Alderman Runnels called the meeting to order.
ROLL CALL:
Present: Fisher, Mayfield, Evans, Allen, Markham, Runnels
Absent: January
I. DISCUSSION – GAS UTILITY TAX ORDINANCE:
Interim Comptroller, Daniela Partipilo explained the Gas Utility Tax Ordinance draft and its benefits.
Currently Azavar Company (Utility Audit Solutions), was unable to collect the tax from out of state providers. The ordinance would ensure including those alternative suppliers in and out of state. Once approved, the date would be effective within approximately (16) days for the utility companies.
Attorney Simon added there would be a required agreement because the local utility has agreed voluntarily to collect the tax on behalf of the City including a small fee gathered from the tax revenues.
Alderman Allen questioned clarification of the gas tax impacting the residents etc. Attorney Simon explained that every resident or commercial enterprise that purchased it from a local utility vs. out of state supplier paid tax currently. It would ensure that the City would levy taxes from everyone.
The Mayor explained this agreement was comparable to electric provider.
Alderman Evans questioned how the City received the information. Attorney Simon explained that it was conveyed from local provider, North Shore Gas. They would collect a small percentage of tax revenue (3%) and was reimbursed in behalf of the City.
Mrs. Partipilo explained that it was during deregulation time period and Azavar reviewed all utilities.
Alderman Allen questioned pg. 5 of the Gas Utility Tax Ordinance; why the Mayor, Comptroller and Chief of Staff were authorized to enter into the contract vs. the City Council; suggested that council had the final decision. He strongly disagreed and clarified the City was home-ruled and requested to change the wording to reflect authorizing city council entering into the agreement. Attorney Simon clarified that the company would not re-negotiate any changes to the agreement presented to collect the taxes in behalf of the City. It was with local provider to collect the tax for the City. The form of the agreement approved wouldn’t change as what was presented. He suggested the council had the right to reserve the power and that the expectations were fair due to already have attempted to negotiate.
The Mayor clarified what Alderman Allen was requesting.
Treasurer, Kenneth Robinson questioned if additional revenue with Azavar for the agreement. Attorney Simon explained they would receive a share of additional tax revenue for a limited period of time and paid upon encountering new revenue.
The Mayor added that it was explained that Azavar Solutions would be compensated small percentage upon finding new revenue.
Alderman Mayfield added that Azavar was approved by council and indicated there was no out-of- pocket expense. They were paid upon revenue being discovered.
This would bepresented at the next Council Meeting, January 06, 2020.
II. DISCUSSION/PRESENTATION – COMPTROLLER’S OFFICE RENOVATION:
Mrs. Partipilo explained that Assistant Comptroller, Tawanda Joyner was overseeing the project and was unavailable to be present due to a family emergency.
This will be placed on the next Committee Agenda, January 06, 2020.
Alderman Mayfield moved, seconded by Alderman Allen that Finance Committee Meeting stand adjourned.
MOTION CARRIED BY VOICE VOTE
Alderman January was absent.
The meeting adjourned at 7:17 p.m.
https://www.northchicago.org/vertical/Sites/%7B52959CF2-969E-41D9-A9CF-CF0A11D0BEA9%7D/uploads/COM.12.16.19.pdf
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