Can Elgin’s senior tax rebate survive?

Elgin City Council members on Wednesday will discuss whether they can still fund the senior citizen property tax rebate program that’s been in existence for 15 years.The program is funded through taxes on the Grand Victoria Casino and may no longer be a guarantee, officials say. In 1996 the council voted to implement a rebate program that would give $200 back to qualifying homeowners older than 65 and $35 back to qualifying mobile home owners in the same age bracket. But the council specified this would only be the case as long as the balance in the riverboat fund exceeded $13,275,000.Since the program#146;s inception the fund boasted revenues well beyond that threshold. Since 1996 Elgin has paid out $9,387,015 in rebates to seniors.This year, the rebates could run aground for some. City staff members think a combination of factors, most recently the opening of the Rivers Casino in Des Plaines will leave the riverboat fund short of the stated threshold. City Manager Sean Stegall said he understands seniors on fixed incomes base their lifestyles on certain expectations, but the city created the program with expectations for riverboat revenues that no longer exist. #147;Certain changes at the state level and economic decisions have necessitated us to approach many things from a completely different point of view,#148; Stegall said. That means not a single street reconstruction project planned for the coming year and declining aid for Elgin nonprofits, in addition to the proposed changes to the senior citizens rebate program.The program is expected to cost $825,000 if all eligible seniors get the rebate this year. Because of the uncertainty of revenue projections, city staff members recommend the council approve a modified version of the program that would include two payouts. First, senior homeowners with a household income of $55,000 or less would get the rebate. Then, if the fund balance remains better than $13,275,000 the remaining seniors would qualify as well. Staff members predict the fund will finish the year with $13,039,000.Bette Schoenholtz, executive director of Senior Services Associates, said if the city council decides against funding the rebate it will be one of many cuts for that group. She noted the state#146;s plan to cut back on a pharmaceutical program that allowed seniors to save money on medication. Schoenholtz said the rebate would be particularly valuable as people fill the void the state changes will cause.#147;At a time when there are cuts like that, that would be a place, certainly, where the seniors could use that money,#148; Schoenholtz said. If council members approve the two-phase payout, lower-income seniors should see their rebates in early fall with the second group waiting until January, when the city will know the actual fund balance from riverboat revenues.