By Ted Schnell • BocaJump | Jan. 24, 2012
It looks like 2011 will be the final year of Elgin’s property tax rebate to the city’s senior citizens who own their own homes. The rebates likely will be mailed out in
While seniors have yet to receive their 2011 rebate checks — which normally are distributed in July to Elgin’s Kane County senior citizens and in the fall to the city’s seniors owning homes in Cook County — enough money came in after all to warrant issues the program’s $825,000 in rebates.
But Assistant City Manager Rick Kozal and Chief Financial Officer Colleen Lavery said Monday the program ends there. No rebates would be issued from 2012 revenues onward, as the program is being proposed to the City Council.
The city administration’s memo to the council notes that final tally of riverboat revenue for 2011 is $14,709, which is slightly greater than the $13.275 million threshold set to end the program. “It is recommended that the City Council approve the Senior Tax Rebate Program for 2011 at an estimated cost of $825,000 and conclude the program,” the memo states.
When the City Council voted in late 1996 to establish property tax rebates for senior citizens, the city was pulling in $19 million a year from the then 2-year-old Grand Victoria Casino.
The admission fees and gaming tax receipts from the casino also allowed the city to eliminate a citywide vehicle sticker fee, set up a general fund reserve, and initiate an array of capital projects that had been neglected over decades of economic decline in Elgin.
Since the senior property tax rebate program first was implemented in 1997, qualifying homeowners have received a $200 rebate, and qualifying owners of mobile homes have received a $35 rebate each year.
Since 1997, the program has returned nearly $9.38 million to qualifying seniors.
Casino revenues to Elgin reached their highest level in 2007, generating $24.300 million. In 2008, riverboat proceeds fell 21.3 percent to $19.129 million. This decrease was attributed primarily to the implementation of the state’s indoor smoking ban in January 2008, and secondarily to economic challenges. Additional declines cut revenues to $16.766 million in 2009, $16.480 million in 2010 and $14.709 million in 2011. These decreases were due to the continuing recession. Further revenue attrition is expected in 2012 because of the new casino in Des Plaines.
While the final tally for 2011 exceeded the threshold that would allow the program to continue, the staff memo points out that the City Council already agreed, as part of the budget process, to end the program.
