Money for downtown Elgin work is from TIF district

As tough choices near for Elgin's 2010 budget near, Elgin City Council members could find themselves fighting each other over who gets what in the $277 million spending plan.

Or, every thing could be just rosy by early- to mid-December, when the budget is expected to be approved.

But one common foe Elgin council members hope to take on right now is public perception.

Or, make that misconception.

As the city cuts costs through layoffs, attrition and early retirement, a common question posed to city leaders is about the downtown streetscape plan.

If the city has to cut its budget by $20 million from last year, why keep spending about $5 million a year on pavers, streetlights, curbs and landscaping?

The Tax Increment Financing district that encompasses downtown will generate millions each year until April 1, 2025.

"TIF money can only be spent within the TIF district and may not be spent on items such as salaries," said Mayor Ed Schock.

The Illinois General Assembly in the 1970s signed a law allowing municipalities to establish special taxing districts for blighted areas.

In a TIF district, the property tax levels are frozen for up to 23 years. As redevelopment occurs, the land is worth more and can be taxes more.

As this happens, the increase - or increment - goes into a special fund to pay for infrastructure improvements to entice new growth or helps pay off incentive deals doled out to lure new businesses.

The downtown Elgin TIF will generate $7.9 million in 2010 and having a vibrant downtown as a top city goal.

"It's one of the most powerful economic engines, but it comes with a lot of strings," said Councilman Mike Warren of the TIF district.

The council will resume its budget talks at 5 p.m. Wednesday at city hall, 150 Dexter Court.

Renz lands grant: Renz Addiction Counseling Center in Elgin recently received a $350,000 federal grant through the Substance Abuse Mental Health Services Administration, or SAMHSA.

The grant will fund Renz Center's Community Homeless Integration Project, also known as CHIP.

The program offers substance abuse and mental health treatment to homeless people in the suburbs.

suburban homeless persons.

Five Elgin community partners will help with the grant, including the: Community Crisis Center, Ecker Mental Health Center, Greater Elgin Family Care Center, Lazarus House, and P.A.D.S. of Elgin.

Funding is renewable for a five-year period and will provide services for up to 1,500 people during that time.

To find out more about Renz Center's programs, call (847) 742-3545 or visit www.renzcenter.org.