South Elgin planning to give $60 credit on water bills

Residents and business owners in South Elgin can expect to get a $60 credit - in two installments of $30 per month - on their water bills pending final approval by the village board.

The village board enthusiastically supported the idea when it was discussed during a special meeting Wednesday about retooling the fiscal year 2020-21 budget in light of the COVID-19 pandemic, Village President Steve Ward said. Final approval is expected at the board meeting Monday.

"We have it (the money) and it's time to give back to the community if we can," Ward said.

The village's fiscal year started May 1. The general fund budget, which pays for day-to-day operations, is projected to have a $319,181 deficit - instead of a $55,728 surplus projected pre-pandemic - but has healthy reserves that can make up the difference, Village Administrator Steve Super outlined in budget documents presented to the board.

The new projections shows a $16.2 million general fund budget with about 44% of operating expenses in reserves by the end of fiscal year. Revenues will be $1.5 million less than anticipated, and the village decreased expenses by $1.1 million, including $449,097 that was going to be set aside for equipment replacement.

The loss of sales tax revenues due to the stay-at-home order won't be as dramatic as in some other towns, Super told the board. That's because, while retailers like Kohl's and Ross have been closed, the village has Home Depot, Best Buy, Target, Jewel and Caputo's that are open and perhaps even busier than normal, he said.

The water bill credit will amount to a $525,840 expense for the village out of water fund reserves, estimated at about $6.8 million in fiscal year 2021, Deputy Village Administrator Megan Golden said.

As for how water fund money is used, "We have a number of projects going right now and we are working on plans for future projects," she said, such as about $2.9 million in water main replacement along Route 31 and other locations.

The idea for the credit came after Ward asked Super what the village could do to help residents deal with the economic fallout of the pandemic. Ward's own barbershop in Elgin hasn't been open since March. "Even for people like me $60 will go a long way," he said.