S. Elgin approves budget, utility tax increases

The South Elgin village board has approved a budget that is $3 million shy of last year’s plan but which calls for increases in various utility taxes.

The telecommunications tax will go from 2 to 3 percent and electricity and natural gas taxes will increase from 1 to 3 percent each.

Finance Director Art Skibley said the rates for those taxes hadn’t been changed since they were first imposed in the late 1990s. A state statute allowed municipalities to tax at 5 and 6 percent, but South Elgin chose to set and maintain the lower taxes.

Skibley said the additional revenue will help maintain services and staffing.

“We run a rather minimal staffing level here,” Skibley said. “We’ve never gotten fat over time.”

That means South Elgin hasn’t had to lay anyone off over the last few years but officials say that also means there is no room to cut even as budgets have continued to shrink.

The water and sewer rates are in the fourth year of a 5-year program to keep the rates increasing by 11 percent — instead of the 5.5 percent they had been increasing each year before 2007.

The extra revenue has allowed the village to fund capital improvements like a new well and treatment plan that should come online this year. Before, the tax was only allowing the village to cover the cost of operations, Skibley said.

The overall budget will shrink from about $28.6 million to $25.7 million when the new fiscal year starts May 1.

Village Administrator Larry Jones said the budget doesn’t include many capital projects.

“South Elgin is in a very good position in terms of maintaining a very good level of service to our residents,” Jones said.

Officials held a budget workshop March 14 but no one from the community showed up to offer input. Board members voted unanimously Monday to approve the budget and tax proposals.

The gas increase will go into effect May 1, the electricity will change will start July 1 and telecommunications increase will begin Jan. 1, 2012.