Des Plaines considers funding for generator rebates

Des Plaines city officials will consider increasing funding for the new home generator rebate program at Monday night’s city council meeting.

The program was such a hit that the $22,500 funding allocation ran out on the first day it went into effect on Sept. 19.

Since applications were being accepted on a first-come, first-served basis, it caused a mad rush the first day with lines stretched out the door of Des Plaines City Hall. Within the first week, the city had received 379 rebate applications.

“We were able to fund only 82 of those,” Des Plaines Acting City Manager Jason Slowinski said.

Residents received rebates of either $250 or $400 for portable or in-house generators.

A typical portable home generator powered by gasoline, ranging in capacity from 1,800 watts to 8,000 watts, would cost roughly $400 to $1,000. Automatic, standby generators that run on natural gas and kick in during a power outage to power an entire house can cost between $3,000 and $10,000.

Slowinski estimated it would cost the city roughly $82,000 to fund the remaining 297 applicants. “Right now, we will be recommending an additional $50,000 (in funding) for the remainder of this year,” he added.

Money for the program comes out of the city’s general fund, which is expected to have a balance in the millions at the end of this fiscal year.

“Taking $50,000 out of our reserves to fund this program isn’t going to hurt us,” Slowinski said.

The city council originally earmarked $15,000 for residents proactively buying generators, and $7,500 for retroactive applicants who purchased generators since June 22, after the first severe rainstorm of the season that caused power outages lasting several days.

Slowinski said the city council will evaluate program funding for 2012 when budget talks begin later next month.

“We’ll want to put together a plan for 2012 so we don’t run into this situation again (of money running out),” Slowinski said. “I included $30,000 in the 2012 proposed budget. That would probably cover all of those 379 (applicants), but it doesn’t take into consideration any more that might apply.”

The city is maintaining a list of names of residents who already have applied and continue to apply for the program.

Residents applying for rebates retroactively have until Dec. 2 to come forward for the current program. There is no deadline for those applying for new generator purchases. Residents must provide a valid receipt of purchase to be eligible for the program.