REPORT OF THE COMMITTEE ON FINANCE

 

Public Hearing

 

October 1, 2007

 

The Honorable,

The Board of Commissioners of Cook County

 

ATTENDANCE

 

Present:

President Stroger and Chairman Daley, Vice Chairman Sims, Commissioners Beavers, Butler, Claypool, Collins, Gorman, Goslin, Maldonado, Moreno, Murphy, Peraica, Quigley, Schneider, Silvestri, Steele and Suffredin (17)

 

Absent:

None (0)

 

Also Present:

Ralph Martire - Executive Director, Center for Tax and Budget Accountability; Michael Prinzi - Assistant State’s Attorney, Division Chief, Transactions, Municipal Litigation and Real Estate Taxation Division, State’s Attorney’s Office; and Richard Velazquez - Special Assistant to the President

 

Court Reporter:       Anthony W. Lisanti, C.S.R.

 

Ladies and Gentlemen:

 

        Your Committee on Finance of the Board of Commissioners of Cook County met pursuant to notice for a public hearing on Monday, October 1, 2007 at the hour of 9:00 A.M. in the Board Room, Room 569, County Building, 118 North Clark Street, Chicago, Illinois.

 

        Your Committee has considered the following items and upon adoption of this report, the recommendations are as follows:

 

289340

STRUCTURAL DEFICIT ANALYSIS OF THE COOK COUNTY FISCAL YEAR 2008 BUDGET (PROPOSED RESOLUTION).  Submitting a Proposed Resolution sponsored by Todd H. Stroger, President of the Cook County Board of Commissioners.

 

PROPOSED RESOLUTION

 

WHEREAS, the Center for Tax and Budget Accountability is a non-partisan, non-profit research and advocacy think tank that promotes fair, efficient and progressive tax, spending and economic policies; and

 

WHEREAS, the Center for Tax and Budget Accountability has analyzed Cook County’s Fiscal Year 2008 structural deficit.

 

NOW, THEREFORE, BE IT RESOLVED, that representatives from the Center for Tax and Budget Accountability shall present their findings regarding the structural deficit analysis of the Cook County Fiscal Year 2008 Budget to the Board of Commissioners of Cook County.

 

*Referred to the Committee on Finance on 09/18/07.

 

Chairman Daley called upon Ralph Martire, Executive Director of the Center for Tax and Budget Accountability to give his presentation to the members of the Finance Committee.

 

Commissioner Silvestri, seconded by Commissioner Beavers, moved that the Resolution (Communication Number 289340) be approved and adopted.  The motion carried unanimously.

 

Commissioner Butler, seconded by Commissioner Moreno, moved the approval of Communication Numbers 289338 and 289339.

 

Chairman Daley asked the Secretary to the Board to call upon the registered public speakers, in accordance with Cook County Code, Sec. 2-108(dd):

 

1.       Greg Kelly - SEIU Local 20

2.       Peter Orris, M.D. - Voluntary Attending Physician, Stroger Hospital of Cook County; and representing the Doctors Council Union Organizing Committee of SEIU.  Written statement also distributed.

3.       Ramal Washington - Member, SEIU Local 20

4.       Merrill Singh - Employee, Stroger Hospital of Cook County, and member of SEIU

5.       Laurence Msall - President, Civic Federation

6.       Ken Robbins - President, Illinois Hospital Association

7.       Reverend Louis Flowers - President, Westside Ministers Coalition

8.       Reverend Robert Moore - United for Better Communities

9.       Kevin Scanlon - President and Chief Executive Officer, Metropolitan Chicago Healthcare Council

10.     Marcos Muñoz - Patient, Ambulatory and Community Health Network of Cook County

11.     Courtney Hollowell, M.D. - Attending Physician, Stroger Hospital/Laparoscopic Surgery

12.     David Goldberg, M.D. - Vice President, Executive Medical Staff, Stroger Hospital of Cook County.  Written statement also distributed.

13.     Jackie Reed - Executive Director, Westside Health Authority

14.     Reverend James M. Moody - Pastor, Quinn Chapel AME Church

15.     Maria Elena Reyes - Board Member, Dr. Jorge Prieto Community Board

16.     Mark Peysakhovich - Senior Director for Advocacy, American Heart Association

17.     David Munar - Vice President, AIDS Foundation of Chicago.  Written statement also distributed.

18.     Mawiyah Coates - Patient, The Ruth M. Rothstein CORE Center

19.     Robert Weinstein, M.D. - Director, The Ruth M. Rothstein CORE Center

20.     John Meyer - President, BJ's Market and Bakery

21.     Janice Benson, M.D. - President, Executive Medical Staff, Stroger Hospital of Cook County.  Written statement also distributed.

22.     Sheila O'Grady - President, Illinois Restaurant Association

23.     Dwayne Mitchell - Chief Operating Officer, Chicago Family Health Center

24.     Roxy Taylor - Patient, Ambulatory and Community Health Network of Cook County (Ford Heights Clinic)

25.     Dan Costello - Member, Illinois Restaurant Association representing Home Run Inn Pizza

26.     Jeffrey Schaider, M.D. - Chair, Emergency Medicine - Stroger Hospital of Cook County.  Written statement also distributed.

27.     Judy Roettig - Executive Vice President, Chicagoland Apartment Association

28.     Gerald J. Roper - President and Chief Executive Officer, Chicagoland Chamber of Commerce.  Written statement also distributed.

29.     Lynne Johnson - Program Officer, Chicago Foundation for Women.  Written statement also distributed.

30.     Judy Frigo, M.D. - Physician, Chief Medical Officer, Oak Forest Hospital of Cook County.  Written statement also distributed.

31.     Jim Ginderske - President, Neighbors for a Healthy Rogers Park

32.     Crystal Cash, M.D. - Physician, Provident Hospital of Cook County

33.     George Blakemore - Concerned Citizen

34.     Suma Pyati, M.D. - Chairman, Neonatology, and Co-Director of Perinatal Center, Stroger Hospital of Cook County.  Written statement also distributed.

35.     Jesus M. Sierra - Restaurant owner

36.     Reid Ottesen - Village Manager, Village of Palatine.  Written statement also distributed.

37.     Peter McLoyd - Development Coordinator, The Ruth M. Rothstein CORE Center

38.     Terry Cosgrove - Chief Executive Officer, Personal PAC

39.     Robert Hart - Concerned Citizen, Woodlawn Adult Center

40.     Mary Madison - Restaurant owner

41.     Dorothy Amad Muhammad, R.N., B.S.N. - Board of Directors, Stroger Hospital of Cook County

42.     David Buchanan, M.D. - Physician, Stroger Hospital of Cook County.  Written statement also distributed.

43.     Alfredo Ovalle, M.D. - Physician, Logan Square Clinic, Bureau of Health Services.  Written statement also distributed.

44.     Reverend George Daniels - Pastor, First Baptist Congregational Church of Chicago

45.     Mary Collins - Employee, Data Entry, Stroger Hospital of Cook County

46.     Dorenda Dixon - Program Director, Sheriff's Department of Women's Justice Services

47.     Roy Chavadiyil - Concerned Citizen

48.     Jeremy Todd - Peer Educator, The Ruth M. Rothstein CORE Center

49.     James Hooks - Patient, Ambulatory and Community Health Network of Cook County

50.     Lynn Sapp-Stenson - Business Owner, Original Rainbow Cone

51.     David F. Vite - President, Illinois Retail Merchants Association

52.     Matt Frank - Economic Development Coordinator, Village of Schaumburg.  Written statement also distributed.

53.     Percy Cooper - Concerned Citizen

54.     Peter Schmalz - Representative, AFSCME Council 31

55.     Marc Gordon - President and Chief Executive Officer, Illinois Hotel & Lodging Association

56.     Robert J. More - Concerned Citizen

57.     Michael Livshutz - Concerned Citizen and resident of Morton Grove

 

Written statement only:

 

1.         Honorable R. Eugene Pincham - Retired Justice of the Appellate Court of Illinois

2.         Reverend Al Sampson, Pastor, Fernwood United Methodist Church

3.         Armour Gaston - resident of Cook County.

 

At the conclusion of public testimony, Chairman Daley proceeded with Communication Number 289338, a proposed amendment to the Retailers’ Occupation Tax Ordinance.

 

Commissioner Peraica asked if the statutes referenced in the proposed substitute ordinance amendments are correct.  Mr. Michael Prinzi, Assistant State’s Attorney, Division Chief, Transactions, Municipal Litigation and Real Estate Taxation Division, State’s Attorney’s Office, and Richard Velazquez, Special Assistant to the President both replied in the affirmative.

 

289338

AMENDMENT TO THE HOME RULE COUNTY RETAILERS’ OCCUPATION TAX ORDINANCE (PROPOSED ORDINANCE AMENDMENT).  Submitting a Proposed Ordinance Amendment sponsored by Joan Patricia Murphy, County Commissioner; Co-Sponsored by William M. Beavers, Jerry Butler and Robert B. Steele, County Commissioners.

 

PROPOSED ORDINANCE AMENDMENT

 

COUNTY OF COOK, ILLINOIS

HOME RULE COUNTY RETAILERS’ OCCUPATION TAX

 

BE IT ORDAINED, by the Cook County Board of Commissioners that Chapter 74, Article IV, of the Cook County Code is hereby amended as follows:

 

WHEREAS, County of Cook is a home rule unit of local government pursuant to Article VII, Section 6(a) of the 1970 Illinois Constitution; and

 

WHEREAS, as a home rule county, County of Cook is authorized by P.A. 86-962, as amended, to impose a tax upon all persons in Cook County engaged in the business of selling tangible personal property; and

 

WHEREAS, the Board of Cook County Commissioners finds that additional revenue is required to fund the operations of Cook County Government.

 

NOW, THEREFORE, BE IT ORDAINED THAT:

 

SECTION 1.   As authorized by the “Home Rule County Retailers’ Occupation Tax Law” (55 ILCS 5/5-1006), on and after September 1, 1992, a tax is imposed county-wide upon all persons in Cook County engaged in the business of selling tangible personal property at retail, at the rate of 3/4% 2¾% of the gross receipts from such sales made in the course of such business.  The tax shall be paid in the manner provided by the “Home Rule County Retail Occupation Tax Law”.

 

SECTION 2.   The tax herein provided for shall not be imposed on the sales of food for human consumption which is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks and food which has been prepared for immediate consumption), or on prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, or syringes and needles used by diabetics.  The tax herein provided for shall not apply to tangible personal property titled or registered with an agency of this State’s government.  Nothing in this Ordinance shall be construed to authorize imposition of a tax on the privilege of engaging in any business which, under the Constitution of the United States, may not be made the subject of taxation.

 

SECTION 3.   The Clerk of the Board is hereby authorized and directed to obtain and transmit a certified copy of this Ordinance to the Illinois Department of Revenue not later, than five days after its effective date, and in no case later than June 1, 1992 October 1, 2007 so as to enable the Illinois Department of Revenue to proceed to administer and enforce this Ordinance, on behalf of the County of Cook, as of January 1, 2008.

 

SECTION 4.   This Ordinance shall be known and cited as the “COOK COUNTY HOME RULE COUNTY RETAILERS’ OCCUPATION TAX ORDINANCE” and shall be effective upon its passage.

 

*Referred to the Committee on Finance on 09/18/07.

 

Commissioner Murphy, seconded by Commissioner Beavers, moved to accept the Substitute Ordinance Amendment for Communication Number 289338.  The motion carried unanimously.

 

 

SUBSTITUTE ORDINANCE AMENDMENT FOR COMMUNICATION NUMBER 289338

 

Sponsored by

THE HONORABLE JOAN PATRICIA MURPHY, COUNTY COMMISSIONER

Co-Sponsored by

THE HONORABLE WILLIAM M. BEAVERS, JERRY BUTLER AND

ROBERT B. STEELE, COUNTY COMMISSIONERS

 

HOME RULE COUNTY RETAILERS’ OCCUPATION TAX

 

WHEREAS, County of Cook is a home rule unit of local government pursuant to Article VII, Section 6(a) of the 1970 Illinois Constitution; and

 

WHEREAS, as a home rule county, County of Cook is authorized by 55 ILCS 5/5-1006 to impose a tax upon all persons in Cook County engaged in the business of selling tangible personal property; and

 

WHEREAS, The Board of Cook County Commissioners finds that additional revenue is required to fund the operations of Cook County Government.

 

NOW, THEREFORE, BE IT ORDAINED, by the Cook County Board of Commissioners that Chapter 74 Taxation, Article IV, Sec. 74-150 through 74-152, of the Cook County Code is hereby amended as follows:

 

ARTICLE IV.  RETAILERS’ OCCUPATION TAX

 

Sec. 74-150. Short title.

 

            This article shall be known and may be cited as the Cook County Home Rule County Retail Occupation Tax Ordinance.

 

Sec. 74-151. Imposed.

 

            As authorized by 55 ILCS 5/5-1006 (home rule county retailers' occupation tax law), a tax is imposed Countywide upon all persons in the County engaged in the business of selling tangible personal property at retail, at the rate of two and three-quarters percent (2.75%) of the gross receipts from such sales made in the course of such business. The tax shall be paid in the manner provided in such statute.

 

Sec. 74-152.  Notification of the Illinois Department of Revenue.

 

            The Clerk of the Board is hereby authorized and directed to obtain and transmit a certified copy of this Ordinance to the Illinois Department of Revenue not later than five days after its effective date, and in no case later than October 1, 2007 so as to enable the Illinois Department of Revenue to proceed to administer and enforce this Ordinance, on behalf of the County of Cook, as of January 1, 2008.

 

Effective date: This Ordinance shall take effect upon passage, except that the rate increase in Section 74-151 shall not take effect until January 1, 2008.

 

Commissioner Murphy, seconded by Commissioner Collins, moved to defer consideration of the proposed Substitute Ordinance Amendment (Communication Number 289338) to the October 16, 2007 Finance Committee meeting.  Commissioner Peraica called for a Roll Call, the vote of yeas and nays being as follows:

 

ROLL CALL ON MOTION TO DEFER TO THE

OCTOBER 16, 2007 FINANCE COMMITTEE MEETING

 

Yeas:              Commissioners Beavers, Butler, Collins, Maldonado, Moreno, Murphy, Vice Chairman Sims and Chairman Daley (8)

 

Nays:               Commissioners Claypool, Gorman, Goslin, Peraica, Quigley, Schneider and Silvestri (7)

 

Present:         Commissioner Suffredin (1)

 

Absent:           Commissioner Steele (1)

 

The motion to defer the proposed Substitute Ordinance Amendment CARRIED.

 

Chairman Daley proceeded to the next item on the agenda, a proposed amendment to the Service Occupation Tax Ordinance.

 

289339

AMENDMENT TO THE HOME RULE COUNTY SERVICE OCCUPATION TAX ORDINANCE (PROPOSED ORDINANCE AMENDMENT).  Submitting a Proposed Ordinance Amendment sponsored by Joan Patricia Murphy, County Commissioner; Co-Sponsored by William M. Beavers, Jerry Butler and Robert B. Steele, County Commissioners.

 

PROPOSED ORDINANCE AMENDMENT

 

COUNTY OF COOK, ILLINOIS

HOME RULE COUNTY SERVICE OCCUPATION TAX

 

BE IT ORDAINED, by the Cook County Board of Commissioners that Chapter 74, Article V, of the Cook County Code is hereby amended as follows:

 

WHEREAS, County of Cook is a home rule unit of local government pursuant to Article VII, Section 6(a) of the 1970 Illinois Constitution; and

 

WHEREAS, as a home rule county, County of Cook is authorized by P.A. 86-962, as amended, to impose a tax upon all persons in Cook County engaged in the business of making sales of service; and

 

WHEREAS, the Board of Cook County Commissioners finds that additional revenue is required to fund the operations of Cook County Government.

 

NOW, THEREFORE, BE IT ORDAINED THAT:

 

SECTION 1.   As authorized by the “Home Rule County Retailers’ Occupation Tax Law” (55 ILCS 5/5-1007), on and after September 1, 1992, a tax is imposed county-wide upon all persons in Cook County engaged in the business of making sales of service at the rate of 3/4% 2¾% of the selling price of all tangable personal property transferred by such serviceperson either in the form of tangible personal property or in the form of real estate as an incident to a sale of service.  The tax shall be paid in the manner provided by the “Home Rule County Retail Occupation Tax Law”.

 

SECTION 2.   The tax herein provided for shall not be imposed on the sales of food for human consumption which is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks and food which has been prepared for immediate consumption), or on prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, or syringes and needles used by diabetics.  Nothing in this Ordinance shall be construed to authorize imposition of a tax on the privilege of engaging in any business which, under the Constitution of the United States, may not be made the subject of taxation.

 

SECTION 3.   The Clerk of the Board is hereby authorized and directed to obtain and transmit a certified copy of this Ordinance to the Illinois Department of Revenue not later, than five days after its effective date, and in no case later than June 1, 1992 October 1, 2007 so as to enable the Illinois Department of Revenue to proceed to administer and enforce this Ordinance, on behalf of the County of Cook, as of January 1, 2008.

 

SECTION 4.   This Ordinance shall be known and cited as the “COOK COUNTY HOME RULE COUNTY SERVICE OCCUPATION TAX ORDINANCE” and shall be effective upon its passage.

 

*Referred to the Committee on Finance on 09/18/07.

 

Commissioner Murphy, seconded by Commissioner Beavers, moved to accept the Substitute Ordinance Amendment for Communication Number 289339.  The motion carried unanimously.

 

 

SUBSTITUTE ORDINANCE AMENDMENT FOR COMMUNICATION NUMBER 289339

 

Sponsored by

THE HONORABLE JOAN PATRICIA MURPHY, COUNTY COMMISSIONER

Co-Sponsored by

THE HONORABLE WILLIAM M. BEAVERS, JERRY BUTLER AND

ROBERT B. STEELE, COUNTY COMMISSIONERS

 

HOME RULE COUNTY SERVICE OCCUPATION TAX

 

WHEREAS, County of Cook is a home rule unit of local government pursuant to Article VII, Section 6(a) of the 1970 Illinois Constitution; and

 

WHEREAS, as a home rule county, County of Cook is authorized by 55 ILCS 5/5-1007 to impose a tax upon all persons in Cook County engaged in the business of making sales of service; and

 

WHEREAS, The Board of Cook County Commissioners finds that additional revenue is required to fund the operations of Cook County Government.

 

NOW, THEREFORE, BE IT ORDAINED, by the Cook County Board of Commissioners that Chapter 74 Taxation, Article V, Sec. 74-190 through 74-192, of the Cook County Code is hereby amended as follows:

 

ARTICLE V.  SERVICE OCCUPATION TAX

 

Sec. 74-190. Short title.

 

This article shall be known and may be cited as the Cook County Home Rule County Service Occupation Tax Ordinance.

 

Sec. 74-191. Imposed.

 

As authorized by 55 ILCS 5/5-1007 (home rule county service occupation tax law), a tax is imposed Countywide upon all persons in the County engaged in the business of making sales of service at the rate of two and three-quarters percent (2.75%) of the selling price of all tangible personal property transferred by such serviceperson either in the form of tangible personal property or in the form of real estate as an incident to a sale of service. The tax shall be paid in the manner provided by such statute.

 

Sec. 74-192.  Notification of the Illinois Department of Revenue.

 

            The Clerk of the Board is hereby authorized and directed to obtain and transmit a certified copy of this Ordinance to the Illinois Department of Revenue not later than five days after its effective date, and in no case later than October 1, 2007 so as to enable the Illinois Department of Revenue to proceed to administer and enforce this Ordinance, on behalf of the County of Cook, as of January 1, 2008.

 

Effective date: This Ordinance shall take effect upon passage, except that the rate increase in Section 74-191 shall not take effect until January 1, 2008.

 

Commissioner Murphy, seconded by Commissioner Moreno, moved to defer consideration of the proposed Substitute Ordinance Amendment (Communication Number 289339) to the October 16, 2007 Finance Committee Meeting.  Commissioner Peraica called for a Roll Call, the vote of yeas and nays being as follows:

 

ROLL CALL ON MOTION TO DEFER TO THE

OCTOBER 16, 2007 FINANCE COMMITTEE MEETING

 

Yeas:              Commissioners Beavers, Butler, Collins, Maldonado, Moreno, Murphy, Vice Chairman Sims, Commissioner Steele and Chairman Daley (9)

 

Nays:               Commissioners Claypool, Gorman, Goslin, Peraica, Quigley, Schneider and Silvestri (7)

 

Present:         Commissioner Suffredin (1)

 

The motion to defer the proposed Substitute Ordinance Amendment CARRIED.

 

Commissioner Maldonado, seconded by Commissioner Silvestri, moved to adjourn the meeting.  The motion carried and the meeting was adjourned.

 

YOUR COMMITTEE RECOMMENDS THE FOLLOWING ACTION

WITH REGARD TO THE MATTERS NAMED HEREIN:

 

Communication Number 289340                                                       Approved

Communication Number 289338                                                       Substitute Deferred to 10/16/07

Communication Number 289339                                                       Substitute Deferred to 10/16/07

 

 

 

 

Respectfully submitted,

Committee on Finance

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

John P. Daley, Chairman

Attest:

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Matthew B. DeLeon, Secretary

 

The transcript for this meeting is available in the Office of the Secretary to the Board, 118 North Clark Street, Room 567, Chicago, IL  60602.