Excerpts from the ChicagoTribune.com:
The Elgin City Council recently approved a plan to increase the hotel tax and adjust staffing levels in the fire department. The decision includes raising the hotel tax from 4% to 8%, which would add approximately $3 per night for each hotel room, generating an extra $240,000 annually. This move is intended to maintain funding for the Elgin Area Convention and Visitors Bureau, which has been supported by the city since the 1980s through hotel taxes and state grants.
The original budget proposal had aimed to raise the tax to 6%, increasing the average room rate by about $1.39, but also included cutting the city’s support for the bureau. However, after discussions with council members, the city manager proposed the higher tax rate to ensure continued funding for the bureau, which received around $212,500 in 2017 from the city's tax.
In addition to the tax increase, the budget also calls for reducing the number of firefighters per shift from 34 to 32. According to the city, this change will save $700,000 in overtime costs without requiring layoffs, as the remaining firefighters will be restructured to handle emergency calls more efficiently. The new model is expected to improve ambulance availability for EMS calls, which make up the majority of the fire department’s work.
However, some council members, including Rich Dunne, a former firefighter, raised concerns about the impact on public safety. Dunne warned that the reduction could lower the city’s Insurance Service Office (ISO) rating, potentially leading to higher insurance premiums for residents. He also argued that fewer firefighters could slow down emergency response times and put both the public and firefighters at risk, especially given that the department has already lost 12 positions over the past decade.
To address the $700,000 savings gap, Dunne suggested alternative cost-cutting measures, such as charging businesses for fire alarm services, leasing equipment instead of buying it, and allowing firefighters to access health insurance through the Illinois Firefighters Association. Despite these proposals, the council rejected them in a 7-2 vote during the 2018 budget debate.
The mayor expressed concerns about the long-term reliance on overtime to cover staffing needs, a policy in place for 15 years to avoid the high costs of hiring full-time staff. As the budget process continues, the public is invited to provide input on the proposed $259 million 2018 budget and the 2018–2020 financial plan at a meeting scheduled for 9 a.m. on Saturday at City Hall. Final approval is expected by December 20, and the full document is available online at www.cityofelgin.org/budget.
Thanks, Dan
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