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G65-95 CITY OF ELGIN ORDINANCE NO. G65-95 AN ORDINANCE REPEALING CHAPTER 11 . 72 OF THE ELGIN MUNICIPAL CODE, 1976 , AS AMENDED, ENTITLED "VEHICLE LICENSE" ADOPTED BY THE CITY COUNCIL OF THE CITY OF ELGIN ON THIS 23RD DAY OF AUGUST, 1995 Published in pamphlet form by authority of the City Council of the City of Elgin, Kane and Cook Counties, Illinois, on this 5th day of September, 1995 . tow STATE OF ILLINOIS ss . COUNTY OF KANE CERTIFICATE I , Dolonna Mecum, certify that I am the duly appointed and acting municipal clerk of the City of Elgin, Cook and Kane Counties, Illinois . I further certify that on August 23, 1995, the Corporate Authorities of such municipality passed and approved Ordinance No. G65-95, entitled An Ordinance Repealing Chapter 11 . 72 of the Elgin Municipal Code, 1976, as Amended, Entitled "Vehicle License" which provided by its terms that it should be published in pamphlet form. The pamphlet form of Ordinance No. G65-95, including the Ordinance and a cover sheet thereof, was prepared, and a copy of such Ordinance was posted in the municipal building, commencing on September 5, 1995, and continuing for at least ten days thereafter. Copies of such Ordinance were also available for public inspection upon request in the office of the municipal clerk. DATED at Elgin, Illinois, on September 5, 1995 . Municipal Clerk (SEAL) . Ordinance No. G65-95 AN ORDINANCE REPEALING CHAPTER 11 . 72 OF THE ELGIN MUNICIPAL CODE, 1976, AS AMENDED, ENTITLED "VEHICLE LICENSE" BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1 . That Chapter 11 . 72 of the Elgin Municipal Code, 1976 , as amended, entitled "Vehicle License" be and is hereby repealed. Section 2 . That all ordinances or parts of ordinances in conflict with the provisions of this ordinance be and are hereby repealed. Section 3 . That this ordinance shall be in full force and effect from and after January 1, 1996 . Kevin Kelly, May. "'' Presented: August 23, 1995 Passed: August 23, 1995 Omnibus Vote: Yeas 7 Nays 0 Recorded: August 24, 1995 Published: September 23, 1995 Attest: Dolonna Mecum, ity Clerk Ordinance No. G65-95 AN ORDINANCE REPEALING CHAPTER 11 . 72 OF THE ELGIN MUNICIPAL CODE, 1976 , AS AMENDED, ENTITLED "VEHICLE LICENSE" BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS : Section 1 . That Chapter 11 . 72 of the Elgin Municipal Code, 1976, as amended, entitled "Vehicle License" be and is hereby repealed. Section 2 . That all ordinances or parts of ordinances in conflict with the provisions of this ordinance be and are hereby repealed. Section 3 . That this ordinance shall be in full force and effect from and after January 1, 1996 . s/ Kevin Kelly Kevin Kelly, Mayor Presented: August 23, 1995 Passed: August 23, 1995 Omnibus Vote: Yeas 7 Nays 0 Recorded: August 24 , 1995 Published: Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk City council votes to re eai -stickers By Matt Baron Elgin's share of$13 million in an- WRITER nual nual tax revenue from the Grand Victoria will absorb the$1.2 million Karen Beyer found herself in a gap the repeal will create in the gen- sticky situation Wednesday night. eral budget. In June, it appeared as if the Only one citizen,Tom Sandoz, Larkin Center's 100th birthday next spoke out against what he termed year would become a fixture on the"birthday gift." thousands of vehicle stickers in Sandor warned the riverboat is Elgin. not a permanent revenue source and But newfound riches from the urged the council to delay a decision Grand Victoria Casino prompted the while looking into other ways to city council two weeks ago to cast a spend the money. preliminary vote repealing the stick after the meeting, he predicted er ordinance,which generates$1.2 the money from the casino would million annually. run dry in five to 10 years. Seeking So Beyer, executive director of to bolster his point, he quipped, Larkin Center, a nonprofit youth "Even the O.J. trial will end some welfare agency,issued a low-key re- quest to council members as they day." But council members previously prepared to take a final vote on the issue. had stated they want to give resi- Beyer asked the council to consid- dents a financial break,especially in er issuing a sticker at no cost next light of the riverboat's generating 13 year or to consider the center for a percent more in revenue than initial- logo if the sticker is reinstituted. ly was projected. Her request came during the pub- The casino along South Grove Av- lic comments portion of the meet- enue opened in October and has ing,when council members typical- emerged in recent months as the ly do not respond to remarks. But it most profitable of the state's 10 • is safe to assume city officials hope riverboat sites.The city gets a 5 per- there is no need for a sticker any- cent share of the boat's adjusted time soon. gross receipts and $1 for every ad- By a 7-0 vote, the council agreed mission. to discard the sticker, which has Mayor Kevin Kelly has said he cost$25 for passenger vehicles and will continue to push his campaign untold hours of police and staff time pledge to provide$3 million in prop- in enforcement and processing. erty tax relief with riverboat funds. Sticker scofflaws are not out of Based on comments by other the woods yet:The proper display council members,he appears to be of 1995 stickers will be enforced facing long odds in mustering three through the end of December. other votes to pass the proposal. • Committee of the Whole Meeting August 23, 1995 Page 2 Councilman Schock made a motion, seconded by Councilwoman Yearman, to direct staff to explore and propose alternatives to the existing municipal code regulating package liquor establishments to address the issues of saturation, zoning, special use, etc. Yeas : Councilmembers Gavin, Gilliam, McKevitt, Schock, Walters, Yearman, and Mayor Kelly. Nays : None. Proposed Community Development Block Grant (CDBG) Program Amendment For Elgin Recreation Center The Elgin Recreation Center had previously been approved for 1995 CDBG funding to rehabilitate the building to which they were planning to relocate at 18 North State Street. Since that approval, they have found a building at 1080 East Chicago Street which they believe will better suit their needs and which will require less rehabilitation. Terry Esposito, speaking on behalf of Espo' s Country Lanes/Cascade Manor Banquet facility and other area businesses, stated that they believe 1080 East Chicago Street is not a good location for Elgin Recreation Center and believe it would adversely affect their businesses . She specifically expressed concern about the proposed outdoor basketball court. Councilman Gilliam made a motion, seconded by Councilman Gavin, to give conceptual approval to the proposed amendment, with Elgin Recreation Center having the option of locating to another site, and directing staff to prepare a resolution for final action to be taken at the next Council meeting. Yeas : Councilmembers Gavin, Gilliam, McKevitt, Schock, Walters, Yearman, and Mayor Kelly. Nays : None. Impact of Elimination of Vehicle Sticker Program The Council discussed the agenda memorandum which reflected that approximately $1,242,500 in revenue was received in 1994 for vehicle license sales and ordinance violation fines. The 1994 expenditures totaled approximately $57,246 .58, resulting in a net revenue loss over expenditures of $1, 185,253. 42 . Councilman Gilliam made a motion, seconded by Councilman Gavin, to approve the annual transfer of $1 .2 million from the Elgin Riverboat Fund to the General Fund to replace the revenue lost as a result of the elimination of the vehicle sticker program. Yeas : Councilmembers Gavin, Gilliam, McKevitt, Schock, Walters, Yearman, and Mayor Kelly. Nays : None. Proposed Criteria for the Historic Architectural Rehabilitation Program Councilman Walters made a motion, seconded by Councilman Schock, to approve the proposed selection criteria. Yeas : _ . . (:!4,40) Ar, Agenda Item No. ,,,, .: ., ,,,.,, Zb n August 15, 1995 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Elimination of the Vehicle Sticker Program PURPOSE: The purpose of this memorandum is to provide the Mayor and members of the City Council with information relative to the elimination of "' the vehicle sticker program. $ACEGROUND: Pursuant to the City Council's request for additional information concerning the expenses associated with the vehicle sticker program, below is a summary highlighting those 1994 expenditures. Revenue: Vehicle License Sales $1,200,000.00 Ordinance Violation Fines 42.500.00 Total Revenue 51.242.500.00 Expenditures: Salaries Full-Time: Customer Service $ 7,308.85 MIS 3,370.00 Part-Time 5,965.43 ' C Overtime 1,070.72 Benefits 2,151.75 Elimination of the Vehicle Sticker Program August 15, 1995 Page 2 Salaries (Continued) Temporary Employees S 745. 11 Total Salaries and Benefits $ 20.611 .86 Supplies and Contractual Services: Secretary of State Tape $ 500.00 Forms, Envelopes 12,821.25 Follow-up Telephone Lines 410.00 Advertising 738.38 Postage 17 .224 . 16 Total Supplies/Contractual $ 36.634 .72 Total Expenditures $ 57,246 .58 NET REVENUE OVER EXPENDITURES $1.185.253.42 In reviewing the vehicle sticker program costs, approximately $45,600 of the $57,246 in total expenditures could be eliminated without adversely impacting operations. No full-time personnel would be eliminated due to the fact that as many as six different individuals participate in some aspect of the program (e.g. cashiering, data entry, customer service assistance, supervision, telephone follow-up, etc. ) . Conversely, with the elimination of the program, ticket revenue generated from the ordinance violations of 'Failure to Display' would also be omitted as a General Fund revenue source. Revenue generated through the first six months of this fiscal year totals $27,900. Total revenue for year end is estimated at $42,500. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Moody's Investors Service, Inc. indicated that while it is recommended that revenue sources such as gaming proceeds be used for non-operating purposes, they normally ask three questions when rating the City's overall creditworthiness: Elimination of the Vehicle Sticker Program August 15, 1995 Page 3 1. Dependency - How dependent is the City on this revenue source? Without it could the governmental unit still function. Does the City have alternative revenue sources available and would they be willing to utilize them should the situation present itself? 2 . Significance to total revenue - A $1.2 million transfer would adversely affect a $3.0 million budget more than it would a $39 million budget, such as Elgin's. 3. Is there a willingness on the part of the elected officials to reinstitute the revenue source if it becomes necessary. Although Moody's response was unofficial, they indicated that the transfer of only $1.2 million of riverboat proceeds for operations will not by itself affect the City's bond rating. FINANCIAL IMPACT: Approximately $1.242 million is generated through vehicle sticker sales and fine income. Expenses totaling $45,600 will be saved if the vehicle sticker program is eliminated. The net effect to the General Fund totals $1,196,900. This revenue loss will need to be offset by an ongoing annual transfer of $1.2 million from the Elgin Riverboat Fund (Fund 275) to the General Fund. No increase has been factored in due to the fact that revenues from the vehicle sticker program have remained relatively stable over the last five years, even though population continues to increase. The Five-Year Financial Plan identified ten key issues with a 'Sound Financial Base' listed as key issue #1. One of the guiding principles within a Sound Financial Base focused on the use of riverboat proceeds for one-time expenses. It indicated that due to the unstable nature of gambling revenues, operations should not become dependent on the riverboat. It further stated that the use of gaming proceeds be limited to cash infusions into fund balances, paying off interfund debts, and capital improvements. Since this transfer represents a deviation from the adopted guidelines, the guidelines should be changed to reflect this new policy. Elimination of the Vehicle Sticker Program August 15, 1995 Page 4 LEGAL IMPACT: None. RECOMMENDATION: It is recommended that the Mayor and City Council approve the annual transfer of $1 .2 million from the Elgin Riverboat Fund to the General Fund to replace the revenue lost as a result of the elimination of the vehicle sticker program. Respectfully submitted, a ( 1:()(4/0144 Ja s R. Nowicki F'nance Director Richard B. Helwig City Manager JRN:daw r