McHenry Times

Village of Cary Committee of the Whole met July 2

Here are the minutes provided by the committee:

ATTENDANCE 

Village Board of Trustees 

Mayor Mark Kownick, Trustee Dale Collier, Trustee Ellen McAlpine, Trustee Rick Dudek, Trustee Anthony Stefani, Trustee Rick Walrath, Trustee Jennifer Weinhammer 

Others Present 

Village Administrator Morimoto, Assistant Village Administrator Sage, Community Development Director Simmons, Public Works Director Noonan, Police Chief Finlon, Village Attorney Uhler 

I. Call to Order 

The meeting was called to order by Mayor Kownick at 6:32 p.m. 

II. Roll Call 

The roll was called and all were present. 

III. Pledge of Allegiance 

Mayor Kownick led in the recitation of the Pledge of Allegiance. 

IV. Public Comments 

There being no comments, Mayor Kownick closed Public Comments at 6:33 p.m. V. Discussion Items 

A. Discussion Regarding the Potential Implementation of a Local General Sales Tax Assistant Village Administrator Sage provided an overview of House Bill 3144, which is currently waiting for the Governor's signature for approval. Assistant Administrator Sage stated this bill will eliminate the statewide grocery sales tax and allow for municipalities to implement a municipal grocery sales tax without a referendum. The bill also allows for non-home rule municipalities to implement a local general sales tax without a referendum. 

Trustee Stefani asked how the Village calculates estimated sales tax revenue and noted cannabis sales tax revenue was lower than anticipated. 

Assistant Village Administrator Sage stated cannabis sales tax revenue estimates are projected by the state. Assistant Administrator Sage stated local sales tax 1 revenue is estimated by the Village based on previous sales tax data compiled by the state. 

Trustee Stefani asked how much revenue the Village estimates will be lost due to the loss of the grocery sales tax revenue. 

Assistant Village Administrator Sage stated the Village estimates approximately $400,000 would be lost from the General Fund. 

Assistant Village Administrator Sage stated a potential 1% grocery sales tax by the Village would essentially replace the funds lost due to the elimination of the state's 1% grocery sales tax. 

Trustee Collier asked why the state is eliminating the 1% grocery sales tax and asking local municipalities to implement this type of tax themselves. 

Mayor Kownick stated the state's intention was to provide some measure of tax relief to residents. Mayor Kownick stated eliminating the state grocery tax does not significantly impact residents from local municipalities. All revenue received from the state grocery tax goes directly to the municipalities. Mayor Kownick also stated that the reduction in the LGDF (Local Government Distributive Fund) has resulted in approximately $12 million the Village would have otherwise received. 

Assistant Village Administrator Sage stated the Village's Finance Department projected a loss of $1.7 million due to the reduction of LGDF revenue in fiscal year 2024. 

Mayor Kownick stated implementing a local grocery sales tax is more beneficial to Cary residents than a property tax increase. 

Trustee Dudek supports implementing a local grocery sales tax to make up for the lost revenue due to the elimination of the state grocery sales tax. 

Trustee Stefani asked if House Bill 3144 has been enacted. 

Assistant Village Administrator Sage House Bill 3144 has been passed by the state legislature but has not been signed by the Governor yet. 

Trustee Collier asked if the Village could split local general sales tax revenue between public infrastructure and property tax relief. 

Attorney Uhler stated the Village could split revenue received from a local general sales tax between public infrastructure and property tax relief. 

Trustee Stefani supports implementing a local general sales tax; however, he prefers an amount less than 1%. 

Trustee Walrath supports a local general sales tax that would be implemented when the state grocery sales tax sunsets. 

Trustee Dudek supports implementing a 1% local general sales tax and asked if the Village could rescind it should the state increase the LGDF revenue the Village receives. 

Assistant Village Administrator Sage stated if the Board chose to implement a local general sales tax, they could later vote to make changes or rescind it. Assistant Village Administrator Sage also stated staff can present additional information regarding potential revenue and implementation dates at a future Committee of the Whole meeting. 

It was the consensus of the majority of the Committee of the Whole to continue discussion of the potential implementation of a local general sales tax at a future meeting. 

B. Discussion Regarding a Potential Vendor Kiosk Concept for Alcohol Sales within Downtown Cary 

Director Simmons provided an overview of a potential vendor kiosk concept for alcohol sales within downtown Cary. 

Trustee Collier asked about power supply to the potential site and whether the kiosk would have its own meter. 

Director Simmons stated if the Board is supportive of the request, this is something that could be discussed and included in the terms of a lease agreement. 

Trustee Stefani asked the petitioners about the concept for the storefront location on Jandus. 

The petitioners, Dillon and Michelle Streit, stated this is still being finalized, but the general theme is for an upscale Roaring 20s type establishment. 

Mr. Streit stated they would like to highlight the Village's history by incorporating a wooden counter/bar that was originally used in the Cary General Store and dates back to the 1920s. 

Mrs. Streit stated they wanted to address some of the feedback received at the previous Committee of the Whole meeting, and felt by tying the kiosk to the storefront location they could accomplish this. 

Mayor Kownick asked if the petitioners have had additional conversations with other downtown business owners. 

Mr. Streit stated they had discussions with one of the owners of 750 Cucina Rustica and believe they were able to alleviate some of her concerns regarding the kiosk location. 

Mayor Kownick asked what the estimated timeframe the petitioners had in mind. Mr. Streit stated he would like to begin as soon as possible. 

Trustee Weinhammer asked if the kiosk location would affect potential food truck locations. 

Mayor Kownick stated food truck locations would not be impacted by the kiosk location. 

Mrs. Streit stated they will not be serving food at the kiosk location. 

Trustee McAlpine stated she appreciates that the petitioners actively worked to address concerns raised by nearby downtown business owners. 

Trustee Stefani asked if the proposed kiosk concept is not approved, would the petitioners continue with the storefront project. 

Mrs. Streit stated the storefront project was proposed as a way to address the concerns by some downtown establishments regarding the proposed kiosk. Mrs. Streit stated they may be open to other options if they are not cost-prohibitive. 

Trustee Stefani asked if the Board supports the petitioners' proposal, does this allow other downtown establishments to operate an outdoor bar space. 

Mayor Kownick stated other downtown establishments that possess a liquor license are allowed to operate an outdoor bar space on their property. 

Trustee Collier asked about the business hours of operation for the kiosk location. 

Mrs. Streit stated they are flexible regarding hours. Mrs. Streit stated they do not plan on the kiosk location to operate year-round because the storefront location will be available for patrons during the colder months. 

Mr. Streit stated he hopes to attract customers traveling by train, who may not otherwise stop in Cary. Mr. Streit feels this would help the downtown Cary business community. 

Mayor Kownick asked Director Simmons if the Downtown Social District regulation of establishments utilizing specific cup sizes and types would apply to the kiosk location. 

Director Simmons stated the kiosk location would need to conform to the Downtown Social District regulations. 

It was the consensus of a majority of the Committee of the Whole that the concept of a proposed kiosk for alcohol sales within downtown Cary shall be further be explored. 

VI. Executive Session: 

Litigation: Pending or Imminent 5ILCS 120/2(c)(11) 

Collective Bargaining 5 ILCS 120/2(c)(2) 

Mayor Kownick and Trustees Collier, Dudek, McAlpine, Stefani, and Weinhammer entered into Executive Session at 7:19 p.m. Others present included Village Administrator Morimoto, Assistant Village Administrator Sage, Community Development Director Simmons, Public Works Director Noonan, and Village Attorney Uhler.

Motion:

Mayor Kownick entertained a motion to adjourn into Executive Session to discuss Litigation: Pending of Imminent, 5 ILCS 120/2(c)(11) and Collective Bargaining, 5 ILCS 120/2(c)(2).

Motion moved by Trustee McAlpine and motion seconded by Trustee Stefani.

Motion Passed.

AYES: Collier, McAlpine, Dudek, Stefani, Weinhammer

NAYS: None

ABSTAIN: None

VII. Adjourn

Motion:

There being no further items to discuss, Mayor Kownick entertained a motion to exit Executive Session and adjourn the meeting at 8:04 p.m.

Motion moved by Trustee McAlpine and motion seconded by Trustee Stefani.

Motion Passed.

AYES: Collier, McAlpine, Dudek, Stefani, Weinhammer

NAYS: None

ABSTAIN: None

https://www.caryillinois.com/AgendaCenter/ViewFile/Minutes/_07022024-141