Elgin Budget task force to council: don’t raise taxes

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Carl Missele, chairman of Elgin budget task force

Updated: November 30, 2011 12:41AM

ELGIN — The city’s citizen budget task force will not recommend raising taxes but will suggest the city council first make cuts and adjustments to close a budget deficit.

The group concluded its sessions Tuesday night and, according to task force chairman Carl Missele, the consensus was to keep existing taxes at the same level for now while looking at other ways to close a gap of at least $4.5 million in the city’s general fund.

That’s not to say other sources of revenue might not have to be used, Missele said, but only after other considerations have been examined.

The message to the city council is, “You have to look at all other things first, and if you cannot or won’t make cuts, then you might consider raising revenues,” Missele said.

During its weekly discussions, which began in August, the 13-member advisory group looked over a list of 96 expenditures in the city’s budget and concluded the council should implement making about $2.4 million in suggested cuts.

Among the six-figure slashing suggestions, the group is recommending the council discuss:

Putting off funding a regional park on the far-west side, which would save more than $442,000;

Eliminating the leaf rake-out pickup program, which would save more than $366,000;

Ending a service agreement for economic development work with the chamber of commerce, which would save about $400,000;

Eliminating sponsorship of some concerts at The Hemmens Cultural Center, which would save about $175,000;

Outsourcing custodial services which would save about $172,000;

Reducing or eliminating a contract for mowing services, which could trim $160,000;

Having snowplowing begin only after 2 inches are on the ground, which could save $100,000 in overtime costs.

Other suggested substantial cuts include eliminating the refuse sticker subsidy, which would save $70,000; cutting about $64,000 in funding to the Elgin Symphony Orchestra; reducing the number of hours school crossing guards are on duty, which would save about $67,000; and eliminating a downtown holiday program planned for this December, which would save $49,000.

The group also will suggest the council take a hard look at salaries and benefits paid to city personnel and at cutting funding for the Downtown Neighborhood Association.

Controversial ideas

Missele said a lot of the suggestions could be politically explosive and that he doesn’t expect the council will adopt them all.

And looming on the horizon is how the depressed housing market will impact the city’s bottom line. Missele mentioned that falling equalized assessed values could mean millions less in tax dollars collected by the city.

While the task force did not recommend what new revenue streams the council should consider, Missele noted that in a comparison of 28 area towns, Elgin is only using four of the revenue streams that are in place in all or most of them.

Elgin has a property tax, a hotel tax, a telecommunications tax and a home rule sales tax. But also on the list of revenue generators used by most of those other communities, which Elgin does not have, are a food and beverage tax, a real estate transfer, a natural gas tax, an electricity tax, a refuse disposal fee, a gasoline tax and a vehicle licensing fee/city sticker.

Missele said that the easiest of these to implement might be the refuse fee, which could raise more than $4 million a year in Elgin. Although the vehicle sticker could generate $2.4 million, there would be administrative and enforcement costs associated with it, which led the task force to not recommend it.

The group decided to leave as is the way the city uses its share of Grand Victoria casino revenue. The policy has been to use those funds — which have been dwindling during the recession and in the face of new competition in Des Plaines — for capital projects, to fund capital emergencies, and to fund local nonprofits. As such, the money is not part of the city’s general fund.

Lots of work

City Manager Sean Stegall complimented task force members for the substantial work they did, especially given the relatively short time frame they had. The task force was put together at the council’s suggestion during a retreat held in June and held its first meeting Aug. 2.

Fifty-seven people applied for appointment to it, and those chosen came from a variety of backgrounds and political philosophies. As chairman, Missele moderated the discussions but did not vote on suggestions.

Stegall said the group’s recommendations will be part of a bigger budget presentation to be made in late October or early November. That also will include Chief Financial Officer Colleen Lavery’s estimations of how declining property values will impact the city’s bottom line.