Elgin's budget passed, but fire department still facing cuts

After months of presentations and some discussion, Elgin's 2010 budget has been approved.

City council members signed off on the $277 million spending plan this week, but one more task must be completed by the end of the year: cutting $1.5 million from the fire department budget.

Mayor Ed Schock said Thursday that he hopes an agreement with the union can be reached by Dec. 31, or the city may be forced to unilaterally impose cuts.

"If they aren't responsive, we're going to make the cuts ourselves," he said. "Our preference is to do it with them."

The city balanced its budget by cutting spending on festivals, laying off employees and offering early retirement and raising some fees and fines, including doubling the towing cost to $500 for criminal traffic offenses that require a tow, such as driving under the influence and driving with a suspended license.

The towing change is expected to raise $1.5 million a year.

The city also will launch a new business license program, which is expected to generate some $500,000 a year for a database of businesses as well as fund ongoing programs in conjunction with Elgin Community College and Elgin Area School District U-46 for more work force training.

"This isn't just a quick gimmick to make money in tough times for the city," Schock said.

Fees begin at $35 a year for businesses smaller than 1,000 square feet and top out at $595 a year for businesses more than 40,000 square feet.

Not-for-profit agencies are exempt from the fee but still are asked to give information to the city. Also, businesses in the downtown construction area could be exempt from the fee through 2012 depending on where their location fits into the downtown construction work.

About 30 to 35 business owners, along with members of the Elgin Area Chamber of Commerce and Downtown Neighborhood Association, voiced their support for the program at this week's city council meeting.

Chamber of Commerce President Leo Nelson said Thursday that the work force training is essential and the database will allow more communication to the city's estimated 3,000 businesses.

"That's critical to bringing in new jobs and making sure the businesses here have what they need," Nelson said. "We're excited it's finally come to this point."