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A review of the final f iscal year 2024-25 annual budget during the mid-November City Council meeting highl ighted adjustments made to ensure it remains balanced, despite a reduction in the city’s tax rate.
An adjustment to the city’s maintenance and operations tax rate, now set at 40 cents, is expected to reduce the revenue available in Elgin’s general fund by $231,923. Despite a property tax rate that was also lowered to 57 cents, projected property tax revenue for the coming year is just above $5.27 million, which is still sufficient for the city’s needs, according to City Manager Tom Mattis.
Prior to the adjustment, the tax rate was set at 59 cents, less than the 62 cents authorized by state legislature.
The city’s total revenue for the general fund from taxes and franchise fees is projected at nearly $8.2 million, and overall revenue is expected to be about $15.6 million, which aligns with expenditures planned for the year.
Mattis detailed several budget cuts made to match spending with the reduced revenue. These include a $59,000 reduction f rom the Community Services Department, which in- volved cutting the program assistant position aimed at enhancing communications with the public. The Public Works Department also faced cuts, including a $70,000 reduction for a maintenance technician position, and $50,000 from the street maintenance budget for an alley study.
The alley study, which had been part of the five-year plan discussed earlier by the council, will now be limited due to the budget constraints.
In addition, $43,000 was cut from the city’s sidewalk repair budget, leaving just $11,576 for minimal emergency repairs, rather than comprehensive upgrades.
“That will be enough money for the staff to do kind of emergency minimal repairs, but we won’t be able to do the comprehensive repair job that we initially proposed,” Mattis said.
Other budget cuts inc luded $5,000 from temporary employment services and a $4,200 reduction f rom the council’s travel and training budget, leaving $10,800, or $1,200 per council member for the year.
In tota l, the cut s amounted to almost $232,000.
Along with the budget adjustments, Mattis also provided an update on the city’s community nonprofit support funding.
The city had allocated $50,000 in the budget to distribute to various nonprofit organizations in the city. The deadline for applications has passed, and a committee made up of council members Matthew Callahan, Al Rodriguez, Arthur Gibson and Mayor Theresa McShan will review the applications and approve the funding.
Checks will look to be cut in January.
