ELMHURST – The City Council is expected to vote Monday on two financial issues the Finance, Council Affairs and Administrative Services (FCAAS) Committee brought to the council's last meeting.
The first is a 60-percent sales tax rebate for Ed Napelton's Kia dealership, which caused some disagreement among aldermen.
The Kia franchise requested a sales tax rebate incentive from the city for a manufacturer-required renovation project estimated to cost more than $1.5 million.
Th agreement would pay Napelton Group annually based on each year's calculated sales tax rebate for 10 years up to $750,000. During those 10 years, Napelton could not cease the operation of either the company's Kia or Acura dealerships in Elmhurst except in the event of manufacturer bankruptcy.
Two amendments to change the sales tax incentive to 50 percent and the maximum payout to $600,000 failed at the last council meeting.
The council approved the report with three aldermen opposed.
Property tax levy
The council is also expected to vote on a more than $9 million proposed property tax levy.
The 8-percent tax increase for the 2013 levy would cost the average $295,000 Elmhurst home an additional $23 in taxes next year.
The Elmhurst Public Library's portion of the tax levy will increase an additional 4.9 percent, costing the average home another $3.98.
The general fund portion of the proposed 2013 tax levy is $50,000 lower than the 2012 tax levy.
If approved, the city would pay $2,023,755 of the debt by raising property taxes and the other $3,046,142 of debt service without cost to tax payers. Overall, the increase to tax payers due to debt obligations in the 2013 tax levy would still be $272,292 less than in the 2012 tax levy.
Reductions to the amount of property taxes used to pay debt service and contribute to the General Fund will offset some of the $747,024 total increase in police and fire pension funds.
The council is expected to give a final vote on the tax levy and Kia sales tax incentive at its Monday meeting.