Kaptain gives his 'state of the city' address at ECC

Elgin is faring better than most communities in Illinois and faces a brighter future than in the last three or four decades, Mayor David Kaptain said.

Kaptain pointed to positive trends reflected by increased building permits, new houses and employment rates in Elgin. He touted the construction of three speculative buildings - built for resale - since 2012, with a fourth one approved by the city council Wednesday.

"We have turned a corner. We are not going to go backward," he said during his State of the City address Thursday morning to a crowd of about 100 people at the Elgin Area Chamber of Commerce's annual breakfast at Elgin Community College.

Future challenges include meeting expenses such as the Affordable Care Act's so-called "Cadillac tax," a 40% excise tax that will be collected on the portion of health coverage costs that exceeds certain amounts and cost Elgin more than $600,000 yearly starting in 2018, and increased public safety pension funding requirements, Kaptain said.

Kaptain praised the city council's decision to create new forms of revenue in 2012 by decreasing the city's reliance on property taxes and creating new taxes on alcoholic beverages, natural gas and electricity.

Without that, the city would be facing a $7.5 million to $10 million deficit, he said.

Instead, the city is projecting a balanced budget for 2015 that includes no property tax increases and five new positions, the first in several years. Elgin's bond rating is AAA by Fitch Ratings and AA-plus by Standard & Poor's.

Elgin also has adapted to declining revenues from the Grand Victoria Casino, which dropped from $16.5 million in 2011 to a projected $11.1 million next year, he said.

"We provided this community with a stable economic platform where homes can be built and businesses can be profitable and expand," he said.

The city's image has improved drastically thanks to a decrease in crime and the flourishing of the arts and entertainment business, Kaptain said.

Kaptain pointed to the Elgin Fringe Festival, which attracted more than 2,000 people in September, as a boon for local businesses and hotels. Concerts organized by the casino at Festival Park attracted 6,000 to 7,000 people on average.

"That's more than just quality of life," he said. "That's an economic development tool for the next few decades."

It's important to have a community-based approach to education to supply employers with a well-prepared workforce, Kaptain said.

To that end, the city is partnering with area school districts for the Alignment for Education initiative, whose goals include meeting third-grade reading levels and lowering the dropout rate.

In response to a question from the audience, the mayor also addressed the recent unrest in Ferguson, Missouri, where a white police officer fatally shot a black teen in August.

The key to trying to prevent something similar in Elgin is to diversify the police department and provide good training for officers, he said. Dialogue among the city, police and religious leaders is also crucial, he said.

"It's my belief that our city staff should reflect what our community looks like," he said. "Not mirror it, but reflect it."