Elgin starts budget talks by looking at expenses
Elgin City Council members discussed possible expenses as diverse as Riverside Drive and communications and marketing during a special meeting Wednesday that kicked off discussions about the city's 2014 budget.
The city will not need to impose new taxes or fees to fund operations in 2014, Chief Financial Officer Collen Lavery said. Preliminary projections show property taxes will not exceed 30 percent of the general fund, in compliance with city policy, she said.
Revenues from the city's Central Area Tax Increment Financing District — where property taxes above a frozen amount go into redevelopment rather than local governments like schools — have dropped to $2.7 million yearly, from a high of $4.8 million in 2009, Lavery said.
That means the city council will have to decide whether to fund certain projects, such as $500,000 in extra amenities for Riverside Drive, an estimated $5 million or so for maintenance work on downtown bridges, and possible financial incentives for Wisconsin-based Gorman & Co., which is considering buying and rehabbing the Elgin Tower Building, she said.
The construction of Riverside Drive will be done by December at the latest, City Engineer Joe Evers said. The project, managed by IHC Construction Cos. of Elgin, will cost a total $10.5 million, down from an estimated $13 million, Assistant City Manager Rick Kozal said. About $9 million of the cost is being paid for with state grants.
“They're not cutting corners, they're not using inferior materials; they're just constructing smartly,” he said.
The project will include amenities such as canopies over two of three Fox River overlooks. The third overlook will have space for rotating sculpture exhibits.
The city has budgeted $1.5 million for the project; an additional $500,000 would cover extras like upward lighting for the trees and a security system with cameras, Kozal said.
“(The tree lighting) is the 'wow' factor. You really need it to accomplish the overall vision,” City Manager Sean Stegall said.
Council members directed city staff members to examine how the city can address marketing and communications, whether by hiring people or a consulting firm, or through the Downtown Neighborhood Association and the Elgin Area Chamber of Commerce.
The city had a communications director until personnel cuts about three years ago.
“I am tired of being reactive. It's hurting us as a city. We need to be proactive,” Powell said.
The DNA and the chamber should take care of marketing, Councilman Terry Gavin said. Councilwoman Anna Moeller, however, said the two organizations have different focus areas.
The city needs someone with an overall vision to implement things like Elgin's “City in the Suburbs” branding campaign, Moeller said.
“We wasted money to create this brand and do nothing to promote it,” she said.
Council members also gave the go-ahead to Mayor David Kaptain's idea of creating an ad hoc committee to examine the Hemmens Cultural Center, including whether the city should book acts again rather than just rent it out.
The rental-only policy decreased the Hemmens' operational deficit to $370,000, down from an average $750,000 or so yearly over the past decade, Stegall said.
There's no need to tackle discussions about whether to build a new performing arts facility in Elgin for another five years or so, he said.
“The Hemmens is an older, well-maintained facility with limited potential in the future, but it's not falling apart,” Stegall said.
A 2008 study showed a new building would cost $80 million, while renovating the current one would cost $100 million.