City of Belleville City Council met March 14.
Here is the minutes provided by the Council:
Mayor Mark Eckert called this meeting to order.
Mayor Eckert explained the disaster procedures. Mayor Eckert reminded anyone speaking this evening to step up to a microphone because the meetings are being taped and posted the next day on the website.
Mayor Eckert requested City Clerk Meyer to call roll. Members present on roll call: Alderman Hazel, Alderman Kinsella, Alderwoman Pusa, Alderman Buettner, Alderman Randle, Alderman Tyler, Alderman Anthony, Alderman Ovian, Alderwoman Schaefer, Alderman Gaa, Alderman Weygandt, Alderman Elmore and Alderman Barfield.
Members excused on roll call: Alderman Dintelman, Alderwoman Stiehl and Alderman Wigginton.
Roll Call Department Heads
Roll Call Department Heads: City Clerk, Jennifer Gain Meyer and Finance Director, Jamie Maitret.
City Treasurer Hardt excused.
Pledge
Mayor Eckert led the Pledge of Allegiance.
Discussion Of Fee Increases For Liquor Establishments
Mayor Eckert stated he has made it very clear this has been a tough year in putting the budget together. Income Tax in the State of Illinois is down. Two years in a row the income tax has been down $500,000 each year. During the last several years the State of Illinois has lost approximately 35,000 residents and some businesses.
When the recession hit in 2008 it did not affect the city until 2010. That year the city lost $751,000 from the State of Illinois with no warning. The City's big item is police and fire. The general fund proposed this year is $28,100,000. 60% of this will go to the police and fire department.
The City's department are down employees. Mayor Eckert stated it has been recommended to cut sanitation. Sanitation is the only city service that the revenue covers the expenses. Keep in mind the sanitation department is also available to pick up trash in areas throughout town.
Sales tax has been consistent for the last several years. The liquor fees have not been raised between 10 and 13 years. When gaming was brought to the city 5 years ago it was brought to the council and it passed. Aldermen back then wanted to charge $500 per sticker. Mayor Eckert wanted to start slow on fees to give it a chance. The sticker fees have not been raised since it was started.
Mayor Eckert stated with his proposal the fee will increase $100 April 2018 and then a $100 increase April 2019. The terminal operators fee will be assumed by the terminal operators.
Finance Director, Jamie Maitret, stated the biggest misconception was that the bar owners will be footing the $180,000 fee increase. The $180,000 of the fee increases was for all the increases combined. Tonight, approximately $60,000 is needed to balance the budget. Mayor Eckert stated the budget is not being balanced on fees. Mayor Eckert advised if you are a new applicant (liquor license) the fee is going from $250 to $500.
Alderman Elmore stated he has received phone calls from bar owners. Questions have been raised.why are you only concentrating on bar owners; Alderman Elmore stated they will discussing very soon a business's license for every business retail, mercantile, industrial, school, church which can bring in $175,000 to $200,000. Why is the city only looking at video gaming as the only new source of revenue; Alderman Elmore proposed thought and discussion of a new fee that has not been discussed and it is not a huge revenue producer. Rather, it is an effort to be fair to all in the bar, tavern, restaurant business. Simply put everyone on the same playing field.
Alderman Elmore recommended outdoor dining tables which are on city property. He sees no reason why a fee of $25 to $35 per table is not charged for each table. Alderman Elmore stated the fees going from $100 to $200 should stop there at this time. He stated another classification should be designed for the neighborhood bar that doesn't have a kitchen or food license. The application fee for new bars should be raised more than the $500. He is not convinced the city needs that many bars in Belleville and certainly not a bar that cannot afford a $1,000 license.
Mayor Eckert stated the downtown businesses from 6th Street to Oak Street have a special service district tax. They are paying toward the streetscape ($1.25 million). This group repays the city $10,000 each year toward police. To add a table fee when they are already taxing themselves, does not make sense. Mayor Eckert referenced the police overtime is estimated to be $750,000.
Mayor Eckert state online shopping is killing the merchants.
Alderman Ovian recommended licensing all businesses in Belleville $100/annually. Mayor Eckert stated this is being discussed. Mayor Eckert advised it is against State statute to raise fees to try and raise revenue and City Attorney Hoerner is researching the business license.
Public Participation
Barry Gregory
Mr. Gregory thanked the administration and council for giving him the opportunity to speak. Alderman Silsby said after this was discussed at the last city council meeting regarding the fee increases that both sides would get together and talk.
Mr. Gregory disseminated his first handout reflecting 347 communities and their video gaming fees. There is a broad spectrum of charges and the city is still among some of the highest fees.
Mr. Gregory disseminated a second handout which includes the liquor license and video gaming fees in comparison to the surrounding communities. He did not cherry pick anything. If you look at some of the higher gaming fees they have some of the lower liquor license fees with one exception.
He reviewed the proposal of the revised increases and they very much appreciate that there was a lessening. Basically, it's like putting lipstick on a pig. It has only been pushed off a year. It is still focusing on the hospitality industry.
The next handout is some of the locations on the proposed fees. If you look at those they have lower net terminal incomes than Belleville. Why do you think that is.because of the fees.
These establishments are mom and pop businesses. When they get their fees it is reinvested in the community i.e. lumber companies, Home Depot.
The next handout is a list of the business license fees in Belleville. A Bed and Breakfast pays $75 but a motel pays $25 who has more rooms and can better afford a fee.
A vehicle vending food $50; however, look at the fees the hospitality industry is required to pay. How much sales tax has been collected from the vehicle vendors. He sees one parked on North Belt weekly. He sees one on North Illinois. What is the City benefits as far as sales tax revenue.
City Clerk Meyer stated regarding the $25 fees license for a food vending truck is obsolete; there is now a mobile commerce vendor (food trucks) that has been incorporated a couple months ago and that is $100 fee.
The Queen of Hearts drawing; everyone knows there is thousands of dollars involved in those. $25 is ludicrous.
A second hand dealer $25. He asked a second hand dealer to pay $25 and yet he has to pay $50/ea for a coin operated gum ball machine or a dart machine or a pinball machine.
Liquor license fees $100 to $800. He thinks the majority in the room is paying $800.
For one additional hour license is costing $4.16 a minute. Alton, Illinois has a license that goes to 3:00 a.m. No one is asking for that around here.
In their industry, they cannot hardly find workers. He has not had a full staff in 13 months. Just in the past month he has lost three workers.one went to Freeburg ($13.00/hr for a cook).
Hofbräuhaus just took one of his cook's and he/she went for more wages. He interviewed bartenders and a venue just one mile outside of the city limits is paying 45% more an hour than he can afford to pay his help.
There are so many fees and restrictions in Belleville. Mouse races have been banned. There were six schools that had fundraisers scheduled that had to be canceled or moved.
City Clerk Meyer advised the mouse races are illegal by State law. If a call is received they are simply told the City will not license them. The State considers mouse racing the same as horse racing, anything with live animals. One must have special approval by the State.
Mr. Gregory stated the hospitality industry for every one opening they lose 2 to 5. Think about last year alone.Shenanigans, Fischer's, IHop, Marcos on Main and the Red Onion. The State liquor license fee increased by 50% last year alone. Again, the net terminal is $6,602 below the State average.
Level the playing field. No one knows the exact amount of businesses there are in Belleville. The best he can find is from the City Fire Department who estimate somewhere between 2300 - 2400 business. If you have 2000 business @ $100 = $200,000 we could have tomorrow.
March 13, 2015 he requested to institute a business license so it is fair for all businesses. He also proposed $1,000 application fee. Don't let Johnny come lately come in and try to sell $1 beers. Get people serious about being professional owners. Let's grow together.
The video gaming industry has brought in over $954,000 to the City already; $308,000 last year alone, up 12.2% from the year before. This is a growing business.
There have been proposals to the State legislature about increasing the betting limit, increasing the payout on the games, about creating player reward systems. Let's grow the industry instead of stifling it.
If you talk about $200,000 from 2000 businesses.think about attorneys in this town. According to Martindale Hubbell 1,300 are in the City of Belleville. If each attorney paid money think about what you have. Those attorneys comprise 166 law firm. $100/per firm equals $16,600.00. These law firms have over 100 attorney involved. If you charge $25 per attorney that would be another $28,350. Just from the law community you are generating $45,950. There is no real way to tell exactly how many groups of physicians; however, there are 340 physician profiles in the City. With these two professions you are looking at $228,350.
Why look at $40,000 from the hospitality industry when it can be spread across the board instead of the backs of the hospitality industry.
Alderman Buettner asked if the gaming parlors were in Belleville if they would hurt the hospitality industry's business? Mr. Gregory stated there was a coalition against this. Also, the casino cafe's are not owned locally. Alderman Buettner stated he does not want the fees raised. You are talking $60,000 of a $28,000,000 budget. Mayor Eckert stated the fees have not been raised in 10 years. Alderman Buettner said people and businesses are leaving the State of Illinois. Moto Mart is expanding (there is sales tax); the Hofbräuhaus projection is $87,000 and 9 months of that revenue is $75,000. Alderman Buettner recommended holding off. Mayor Eckert reviewed his proposal.
Mayor Eckert said he will be appointing a committee to review what happens when TIF 3 goes away ending 2021. When TIF 3 goes away there will be adjusting to do with the budgets. $6,000,000 is paid out for infrastructure, some comes back to the general fund for administering.
Alderwoman Schaefer recommended waiting to see where the city is financially next year before imposing another $100 fee for gaming; Mayor Eckert said he proposed and actually fought for $100 five years ago, at the time he stood up for the bar owners, otherwise, the aldermen may have had enough votes at that time to go much higher initially.
Mayor Eckert stated the City of Belleville has lost several businesses to O'Fallon, Illinois i.e. car dealerships, hotels and yet they are charging $1000 per sticker. They made approximately $130,000; however, they do not have as many liquor licenses as the City of Belleville.
Mr. Gregory said the locations of O'Fallon and Collinsville both have lower net terminal incomes than the City of Belleville and neither one of the communities wanted video gaming and did it as a punitive damage to their businesses.
Mayor Eckert said they pay higher salaries than the City of Belleville. The City of Belleville has 80 plus police officers and they have 40-45.
Marylin Neumeyer
Ms. Neumeyer is the secretary/treasurer for the St. Clair County Beverage Association and is also a trustee for the Village of Swansea. She understands very well when you talk about balancing your budget. Trying to compare cities on fees is very hard because considering demographics of the median income. She owned a tavern in Fairview Heights for ten years and sold it last year due to health reasons. She was very lucky because Fairview Heights charges no fees. All employees must have BASSET training which is training to service beer, recognize drunks, etc. They also need food handlers certification and now they are going to allergy training. This is all extra to keep the businesses open.
In 2015 the casino cafe had ten places in Fairview Heights that had video gaming, two of them were Lucy's. She took all of the money, divided it up, and it averaged that the casino cafes were bringing in $20,000/mo and the average of everyone else was $4,000/mo. If you bring them in you will receive money from the casino cafes and in turn you will hurt the other businesses.
By the time you talk about the other options i.e. lawyers, doctors, other businesses, those will be in place already. If she still owned her business and didn't have the video gaming money she would have closed. The extra money was used to upgrade her tavern. There are only so many gamblers; therefore, only so much money.
Mayor Eckert stated the City of Belleville does not have a beverage tax as other surrounding communities.
Ms. Neumeyer said the new taxes were going to hurt the people. The City cannot afford to lose any more places.
Alderman Tyler said we are talking about less than 1% of the budget. We are trying to hammer from several different directions. The machine operators do not live here, they take a lot of money out of the area. We have Art on the Square where there is a city employee on every corner. It seems like we can cut back as the same with the Shriner's Parade. Mayor Eckert stated the festivals downtown pay back 80% of what the city's cost is. The bill for Art on the Square will be $20,000. Alderman Tyler suggested reducing the police at every 3rd block; Mayor Eckert stated he leaves the decisions to the police and fire department for safety. Alderman Tyler asked to take into consideration the new Dollar General store; Director of Finance, Jamie Maitret stated this has been included.
Mayor Eckert stated there will be a 3% raise this year for employees; the unions settled on a four year contract of 2%, 2%, 2% and 3%. At that time the city council voted to approve the contracts. The only people not getting a 3% raise is the Mayor, Clerk and Treasurer. Mayor Eckert stated of his four terms there has only been raises for the Mayor, Clerk and Treasurer two terms.
Alderman Kinsella said the unions went without raises for a while; Mayor Eckert stated most unions took two years of zero.
Alderman Tyler stated the unions came with a three year contract and the city offered the fourth year at 3% and it was the city's idea to give the 3%; Mayor Eckert disagreed and said it was the union that came forward and used the "me too" clause.
Lonnie Casey
Mr. Casey owns Night Moves, on McClintock, stated he is happy with the support of the aldermen; however, doing business at Night Moves and Lonnie's Tire and Auto, internet sales is hurting everyone. He has been focusing on Pay Pal and Pay Pal will open doors to benefit on sales tax.
Mayor Eckert stated he attended a meeting in Washington D.C. on Marketplace Fairness. He is lobbying to the legislatures that there must be marketplace fairness. It is not fair that the internet companies are not charging tax. It not fair to the local businesses.
Mr. Casey said keep in mind he has people that want to bring tires into his shop for him to install. He questions on where they were bought; if they were bought online there is a good chance he does not want their business because they didn't give him a chance.
Fifteen years ago 50% of all alcohol sales were liquor stores, Wal-Marts, packaged liquor and the other 50% was at the bars. Today, it is a proven fact, 20% at the bar and 80% at the liquor stores.
Mr. Casey stated the smoking ban put a damper on alcohol sales. He said regarding the internet businesses he knows a person that made six figures and didn't pay income tax. If the fees are raised they will not be given back.
Alderman Randle thanked the business owners for their remarks. He would like business license fees across the board so it is not a burden placed on the hospitality industry. He is concerned why we have to wait until April why can it not be instituted in September and pro rate the fee and then implement the full fee across the business in April 2019.
Bruce Hampton
The City is losing sales tax with packaged liquor. Every case of beer you are making.32 cents and they are paying you.96 cents. Being home rule you can put a tax on this and raise a lot of money.
Keith Schell
The problem the City is facing is funding future pensions. People are leaving because of high taxes, budget and everyone will continue and hopefully say enough is enough. The system is bankrupting the city. It is more expensive for him to operate here than other parts of the country. You talk about a bare bones budget and then he hears $750,000 in overtime.
Mayor Eckert stated a lot of the overtime the City is reimbursed. You cannot plan if you have a hostage situation, a homicide. The major festivals reimburse, 5Ks reimburse.
Mr. Schell said this is not an attack on the police department. His success is due to being innovative. He doesn't see overcoming what is causing the problem by the taxes being raised. If the income of the City is flat you do not want the employees raises going up of a higher rate. If you are increasing the wages of the public sector faster than the private sector the only choice is to increase taxes which then makes the gap more. Mr. Schell went over his taxes for the last 5 years. He paid $25,000 for a building permit and sewer tap in fee, he will pay $5,000 this year for his video arcades.
Mayor Eckert stated the City has helped his business with tax rebates.
Mr. Schell stated they didn't have to pay sales tax on building materials; therefore, a revenue neutral grant they got from the City. They received a 25% reduction for 5 years on incremental property tax increase.
Mr. Schell said they are being taxed more than other businesses and the reason is because the City has their liquor license number. You are taxing the least earners more. Tax make more.
Alderman Hazel referenced the overtime with the police department, the City is trying to bring back the auxiliary police.
A. P. Moore
Mr. Moore is with A.P. Gaming and is a terminal operator. A convenience store is not required a permit to cash a check, that person is paid 5% to cash that check and the City doesn't receive anything. Same way with liquor. Some of the stores are making $10,000 per week cashing checks.
Mary Dahm Schell
Ms. Schell stated she would like a level playing field. $100 license fee is reasonable for every business in Belleville. It should not just be on the hospitality industry. Everyone benefits from fire/police/streets services why wouldn't everyone have a little bit of skin in the game.
Adjournment
Alderman Randle made a motion seconded by Alderwoman Schaefer to adjourn at 7:40 p.m.
http://www.belleville.net/AgendaCenter/ViewFile/Minutes/_03142018-1661
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