The Village has provided certain administrative services to the Library for many years to make good use of economies of scale and reduce redundancy between the two agencies. The Library is entitled to a share of the Personal Property Replacement Tax (PPRT) funds it receives from the State of Illinois under law. The attached Intergovernmental Agreement codifies and updates an arrangement between the Village and the Arlington Heights Memorial Library that provides for the continued provision of Finance/HR services by the Village for the Library, a mechanism for charging the Library for those services, the appropriate allocation of PPRT funds to the Library, and the determination of the Library’s share of costs for the Village’s upcoming Enterprise Resource Planning Software.

Under the agreement:       

• The Village would receive $129,000 in Fiscal Year 2020 for Finance/HR Services;          

• This amount would be revisited every year based on the Village’s current expenses;          

• The Village would pay the Library $221,533 for past PPRT funds collected;

• The Library would receive 24% of the Village’s PPRT revenues going forward; and
• The Library’s portion of the Village’s ERP Software Purchase would not exceed $460,000.

Staff believes this agreement was negotiated in good faith and benefits the Village and Library fairly and equitably.

RECOMMENDATION

It is recommended that a Resolution entering into an Intergovernmental Agreement with the Arlington Heights Memorial Library regarding the distribution of personal property replacement taxes and the provision of administrative services, be approved.