Elgin task force recommends no new taxes

At its final meeting, the Elgin Budget and Financial Planning Task Force recommended focusing on cutting costs before implementing any new taxes.

Discussion of taxes came Tuesday after task force members agreed the council should review compensation, benefits and service levels in light of declining revenues. Though each member of the task force got a list of taxes that Elgin doesn't collect but other comparable communities do, the conversation ultimately circled back to reducing costs.

The task force has talked about cutting snow removal and leaf collection costs in the past.

Keith Rauschenberger said now is not the time to raise taxes in any form.

“Over the long term, I would hope the city develops a diversified revenue base,” Rauschenberger said. “In the short term, I'd have a hard time recommending a revenue increase.”

Elgin does not tax gasoline, electricity, natural gas, real estate transfers or food and beverages. It also does not charge fees for vehicle stickers or refuse disposal. In each category, there are examples of municipalities that do charge and receive revenue to help fund its operations.

Chief Financial Officer Colleen Lavery told task force members utility and refuse taxes would generate the most money. She estimated the refuse fee alone could mean $4.4 million.

But Thomas Sandor opposed some of the tax ideas on principle.

“I don't like gas or electric (taxes), buried on somebody else's bill for a service you don't provide,” Sandor said. “If the city is going to charge me something, send me a bill. Then it's transparent.”

Task force members agreed implementing a fee for waste disposal would be one of the easiest — with the ability to add it to a water bill — but vehicle stickers would be decidedly more difficult with the need for enforcement.

Barbara Bonner suggested the task force did not have the expertise to say which tax to implement over another but should leave it to the council and city staff to research and decide on.

And only after cost-cutting measures are exhausted, task force members concurred.

Now it is the city council's job to incorporate the committee's recommendations as it starts its own budget process in October.