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�S �, <br /> LEGAL DEPARTMENT MEMORANDUM <br /> No. 97-1 <br /> January 30, 1997 <br /> TO: Honorable Mayor and City Council Members <br /> FROM: James L. Williams, Jr., City Manager <br /> John W. Couter, Corporation Counsel <br /> RE: Foreign Fire Insurance <br /> By state law, every insurance company providing fire insurance in Illinois that is not <br /> incorporated in this state must pay a foreign fire insurance tax. 65 ILCS 5/11-10-1 Proceeds <br /> from the tax - based on the gross receipts in premiums from each city - are paid to the <br /> municipality. State law has been recently amended to further provide that these receipts are to be �I <br /> paid by the municipality to a foreign fire insurance board, composed of inembers of the fire <br /> department, which board has exclusive control over the expenditure of these funds. 65 ILCS <br /> 5/11-10-2 (This provision is mandatory, even for home rule units.) Currently, annual proceeds <br /> from this tax amount to approximately $65,000 - $70,000. <br /> City staff and the fire union (IAFF, Loca1505) have reached agreement on an ordinance to <br /> implement the provisions of state law discussed above. That proposed ordinance is forwarded to <br /> you with this memo, for discussion and action at the February 3rd meeting. <br /> Please call Corporation Counsel John Couter (424-2807) with any questions prior to <br /> Monday's meeting. <br /> JWC:ps <br />