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Elgin council balks at proposed property tax levy increase

Some Elgin City Council members balked at a property tax levy increase proposed by city staff members, questioning whether it's the only way to maintain current services and venturing it might be OK to cut some.

The increase would amount to an estimated $176 per year for an average home with a median market value of $171,000 and an equalized assessed value of $56,430, senior management analyst Aaron Cosentino said.

That would fund a $25 million bond issue for street improvements and underground utility work, an increase in required public pension fund contributions, and increased costs in general fund operations, which largely consist of police, fire, public works and code enforcement, Cosentino said.

Water, sewer and refuse services would cost an extra $42, yielding a total $218 additional expense in 2016 for property owners, he said.

The proposed 2016 budget calls for a property tax levy of $50.1 million, up from $43.9 million this year. That includes an extra $3.1 million for the general fund levy, which has decreased or stayed flat for the last four years.

Otherwise, the city would have to reduce services and costs by laying off 20 to 40 city employees, Cosentino said.

Councilman Terry Gavin said he doesn't think a majority of council members would support a property tax increase.

Mayor David Kaptain, however, warned the problem could balloon next year.

The city is facing a possible two-year property tax freeze that might become permanent, Kaptain said. It's also unclear whether the state will take other action such as slashing municipalities' share of income taxes, he said.

Councilwoman Tish Powell asked whether the city could fund the public works bond issue - which she deemed necessary - without a property tax increase.

As a home rule community, Elgin can establish new revenue sources, such as vehicle stickers, or beef up current revenues such as by increasing sales taxes, Stegall said.

The city also could use reserves to cover the extra utilities and refuse costs, he said.

The city hasn't increased water rates for two years and kept the refuse fee flat last year.

However, any ongoing structural cost increases must correspond to either revenue increases or cost cuts, Stegall said.

"Are you willing to have snow routes cut in half, have code enforcement cut in half, have patrols cut by a quarter or have a fire station close?" he said.

But Councilman John Prigge objected to what he called "an all or none" answer. For example, he said, it might be OK to decrease the frequency of snow plowing.

The city has had three rounds of layoffs in the last several years, eliminating about 100 positions, Powell said.

She pointed to the human resources department, which now has only three people. "We are very lean right now, and in some areas, quite frankly, too lean," she said.

Resident Bennie Sauers objected to that. "There are many things in the budget that can be cut," she said. "You sound like politicians at the table saying all these things in the budget are necessities."

Stegall said he'll present different budget scenarios to the city council in the coming weeks. State law requires the city to approve a budget by the end of the year, before its fiscal year starts Jan. 1.

Council members also decided to set aside next year $150,000 to fund the Ride in Kane program, even though the city's share of gambling money from Grand Victoria Casino - which has traditionally funded the program - has been withheld by the state since July 1.

The program offers low-cost transportation to seniors and the disabled.

Funding that is an extension of the city's plan to provide $775,000 in emergency loans to social service agencies that are struggling due to lack of state funding, Kaptain said.

"It doesn't do any good to do that if they can't have their clients delivered to their door," he said.

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