Rock Island Today

City of East Moline City Council met March 25.

Here are the minutes provided by the council:

PLEDGE:

Mayor Freeman led the City Council and all those present in the Pledge of Allegiance to the Flag.

ROLL CALL

Mayor Freeman called the meeting to order and directed the City Clerk Wanda Roberts-Bontz, to call the roll. The following Alderpersons were present: Olivia Dorothy, Jeffrey Deppe, Adam Guthrie, Rhea Oakes, Lynn Segura, and Jose Rico. Absent: Nancy Mulcahey

PUBLIC COMMENT

None

Mayor Freeman stated that the phone call the City Council received from the Mayor regarding the items being brought before the City Council Meeting on March 18, 2024. When the City received the letter from Quad Cities Chamber wanting to adopt the Business Development District (BDD) and to eliminate the tax that was established to start July 1, 2024. The Quad Cities Chamber letter was dated March 12, 2024, the City received the letter on Friday, March 15, 2024, with the City Council receiving the letter on Monday, March 18, 2024. Mayor Freeman thought he had to inform the City Council. Mayor Freeman felt it should not be discussed at the March 18, 2024 City Council Meeting. Mayor Freeman knew it could have gone to the next City Council Meeting or a special meeting.

The Grocery tax that the State of Illinois, Governor is proposed to be eliminated. The City generates $500,000.00 a year. Mayor Freeman knows that is one of the deficiencies the City will be faced with. Will the City pass its own Ordinance or let it go and recoup off from what the actual budget or other revenues that will come. Looking at the information Mayor Freeman passed out today on what is going on with the city. It is not like something you have not heard before. He thought even proposing some of these taxes is moving too fast. If you look at the point of what we are doing on the water rates increases. Evaluations on the second page of what has increased this year. As the City Council is aware, Mayor Freeman suggested the Food and Beverage tax could be delayed. Here we are getting a recommendation from the Quad Cities Chamber to eliminate it. Now are we going to go back eliminate this tax that we passed. We discussed it with local businesspeople. There are 6 Streamline Architect employees, 1 Mutual Wheel an auto parts distributor, 2 Jennies Box Cars, representatives from Jennies were here at a City Council Meeting expressed their ways, Iron & Grain that is affiliated with Streamline, Hungry Hobo that pays the tax in Moline, Rock Island and the Iowa side, Hyatt Place that is a business here, and some of the residents of East Moline. Mayor Freeman stated that the City Council already passed this tax. The business was not here to state their differences but now we are sitting here and now want to go back and retrack this. Mayor Freeman representing the citizens of East Moline we have heard them express the point taxes, taxes, taxes. Whatever the Council decides to do is up to you. If you have any other questions pertaining to that we can go through it.

Alderperson Oakes stated that the City Council had that discussion back in December 2023 passed that tax, was good with the tax staying.

Mayor Freeman stated they did it. We had the input. Had the Public Hearing out there. Mayor Freeman does not believe they need to go back. The Chamber should have been at the table with the City Council at the time they were going through this tax increase.

Alderperson Dorothy stated that many of the dignitaries in that letter are from Ward 1 from my Ward. Alderperson Dorothy tried going down to speak with the business owners and employees, very few of them returned her calls. The ones she had spoken to have expressed concerns about the paperwork they have to do. Administrative burden of filing the taxes if they could file the State taxes and Cities taxes. By aligning the dates, the taxes are due or establish an online system.

Mayor Freeman stated some of the concerns that he had expressed several times that the cost of the actual tax itself is the consumer. With the number of chairs back there only 4 -5 filled that complained that was the business owner. Expressing the burden on them. It is a burden on us in Finance to go back through and bill these. Even though the State kept track of the sales tax revenue and the city would get reimbursed.

Alderperson Guthrie stated that the businesses that complained in December 2023 only Connie Cornmesser spoke. Those are cash businesses. They pay their tax on how much alcohol they buy those are rare cases.

Mayor Freeman said all municipalities have a meeting tomorrow with the Governor’s proposal to take away the grocery tax. The Governor is not changing his mind and Mayor Freeman has spoken with both Legislators who are behind what the Governor wants to do. Mayor Freeman states do we come back and say we are going to lose that $500,000.00 or are we going to create an Ordinance to get it back. It is a tax when they shop, they pay. That is something you need to look at tax, tax, tax. All within the last 7 months.

Mark Rothert stated that the Elimination of the Grocery Tax by the State of Illinois was only put on the Agenda to let the City Council know that it is happening. The City cannot affect State Legislation. The City of East Moline already submitted our opposition to that through a letter.

Alderperson Dorothy recommended that the City come through with recommendations to reduce the administrative burden.

Ms. Kimberly Rodriguez, Finance Director, is looking into being able to take credit cards for the tax. Will be having more information coming forward on that in the near future.

Mayor Freeman stated if they see payments coming in late, staff can look into other alternatives. Mayor Freeman asked if there were any other questions or concerns. Mayor Freeman asked if someone would like to make a motion to reduce the administrative burden.

A motion was made by Alderperson Dorothy, seconded by Alderperson Rico, measures to reduce the administrative burden when paying the new taxes on small businesses. Upon roll call the following voted in favor: Dorothy, Deppe, Guthrie, and Rico. Opposed: Oakes and Segura. Motion carried. 4 - 2

ATTORNEY ROGER L. STRANDLUND - PRESENTED THE FOLLOWING ORDINANCES AND RESOLUTIONS:

ORDINANCES – 1st Reading

24-02 Designating and Approving the East Moline Business Development District No. 2 and Imposing Related Sales and Hotel/Motel Taxes in the Business Development District No. 2 (Waiver of 2nd reading requested)

A motion was made by Alderperson Oakes, seconded by Alderperson Guthrie, to approve Ordinance 24-02 as presented. Upon roll call the following voted in favor: Dorothy, Deppe, Guthrie, Oakes, Segura, and Rico. Motion carried.

A motion was made by Alderperson Guthrie, seconded by Alderperson Dorothy, to approve waiving 2nd reading of Ordinance 24-02. Upon roll call the following voted in favor: Dorothy, Deppe, Guthrie, Oakes, Segura, and Rico. Motion carried.

ADJOURNMENT

A motion was made by Alderperson Deppe, seconded by Alderperson Segura, to adjourn the City Council meeting. A voice vote was taken. Motion carried. 12:20 p.m.

https://www.eastmoline.com/AgendaCenter/ViewFile/Minutes/_03252024-1012