Submitted By
Paul L. Stephanides, Village Attorney and Steven Drazner, Chief Financial Officer
Reviewed By
CLP
Agenda Item Title
Title
A Resolution Approving a Municipal Gas Use Tax Collection Agreement between the Village of Oak Park, Illinois and Northern Illinois Gas Company, d/b/a Nicor Gas Company and Authorizing its Execution
End
Overview
Overview
Pursuant to the Agreement, Northern Illinois Gas Company, d/b/a Nicor Gas Company (“Nicor”), will collect the Village’s $0.05 per therm gas use tax pursuant to Section 23A-7-1 through Section 23A-7-5 of the Village Code.
Body
Staff Recommendation
Adopt the Resolution.
Fiscal Impact
The revenues associated with the adopted gas use tax is are provided for in the FY17 General Fund.
Background
The Village adopted Ordinance Number 16-149 on November 21, 2016 which amended Section 23A-7-3 of the Village Code to increase the Village’s gas use tax from $0.022 to $0.05 per therm. The Agreement between the Village and Nicor authorizes Nicor to collect the tax and remit the proceeds to the Village pursuant to the terms of the Agreement. Nicor will retain a 3% fee to collect the tax pursuant to Section 23A-7-4 of the Village Code.
Alternatives
Not adopt the Resolution.
Previous Board Action
On November 21, 2016, the Village Board adopted Ordinance Number 16-149 to establish the Village’s new gas use tax rate.
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A
Performance Management (MAP) Alignment
N/A