Elgin talks taxes, fees to fix budget gap
A refuse fee to pay for a new 911 system, a higher sales tax to pay for street improvements, a sin tax on liquor and alcohol, vehicle stickers — Elgin City Council members discussed all of these possibilities in brainstorming ways to close a budget gap that could reach $13 million.
The council first focused on the general fund in its committee of the whole meeting Wednesday. The refuse fee was suggested by City Manager Sean Stegall in his proposed budget as a way to get more money into the city's main fund.
Councilwoman Tish Powell said she preferred finding another way to pay for the 911 system, which city officials say needs to be modernized. The refuse fee, Powell argued, would only be paid for by owners of residential properties, not businesses, but everyone in the community and beyond would benefit from a newer system.
“The cost should not be borne by a small segment of the population,” Powell said. “I agree we do need to replace that system, I just think we can find a more equitable way to fund it.”
Stegall recommended implementing an $18-per-month fee on refuse collection that would increase 4 percent in 2015 and 2016.
Council members also discussed the idea of a specified revenue stream devoted to fixing city streets during their meeting. Most of the council agreed that should happen, whether it be through a sales tax increase or vehicle sticker fee, but Councilman Richard Dunne opposed the idea. He said he would prefer setting aside money from the riverboat fund for a streets program instead of adding another tax.
In searching for ways to avoid more taxes, high overtime costs have been highlighted by many in the community as a way to decrease the budget gap and save millions.
Stegall said overtime is used in public works and the police and fire departments to save money by hiring fewer people. Though overtime costs are relatively high, Stegall said the end result is a good one.
“The bottom line is what the overall costs of the department are,” Stegall said. “Elgin taxpayers are getting a very good deal and overtime is a part of that.”
The council will hear residents ideas, questions and concerns about the 2012 budget at a special meeting from 9 a.m. to noon Saturday in the Heritage Ballroom of The Centre, 100 Symphony Way. The proposed budget is also available at cityofelgin.org/2012 budget.
Talks: Residents can have their say at meeting Saturday