The Elgin City Council passed a $277.8 million budget, which includes a $2 million reduction in property taxes for 2013 in a 6-1 vote, with Councilman John Prigge opposing.
The proposed spending plan represents a 2.58 percent increase of the $270.8 million 2012 budget, which included new taxes on natural gas, electricity, alcoholic beverages and refuse collection. City Manager Sean Stegall said the new taxes amount to an average of a $58 increase per person in the city, but added that can vary greatly.
Colleen Lavery, the city's chief financial officer, said the city's goal of reducing reliance on property taxes has been accomplished. Property taxes provide 31 percent of tax revenue, down from 47 percent last year, she said.
Lavery said they are expecting general fund earnings of $102 million, with $95 million in expenditures. Some of those general fund expenditures will include hiring a new building inspector and $11 million for a public safety communications system and $2 million for new public safety vehicles.
About 75 percent of the general fund goes to employee compensation and benefits, which amounts to $73,360.180.
Prior to the vote Prigge said the budget is a statement of the city's priorities, but those priorities don't reflect the interests of the taxpayers. Prigge said the budget contains a number of unnecessary expenses, including $900,000 for the recreation center, and expenses supporting fireworks in other communities.
"We are continuing spending habits that do not reflect the new economy," Prigge said. "Diversifying the tax stream does not mean we should continue to pick the pockets of the people of Elgin."
Echoing Prigge's opinion was resident Terry Gavin who criticized the annual spending plan. He said the budget has grown 36 percent since the 2011 budget was passed, which for him indicates a desire to grow government rather than protect the interests of the taxpayers. He said city leaders should look at reducing spending rather than funding projects for programs that are not being used, like many of the recreation programs.
"The rec center is gushing red ink... I don't think the taxpayers are very happy," Gavin said.
Gavan said the city should repeal most of the new taxes it passed last year and rewrite a budget that includes less spending.
Councilman John Steffen said there are a number of one time expenses in the budget that are paid for by revenue streams that do not come from tax dollars, but from sources like grant funds and developer fees.
Councilwoman Tish Powell lauded the new revenue streams implemented in last year's budget.
"We can't lose sight of the long term goal to reduce reliance on property taxes which will benefit the whole community," she said. "We've reached our own fiscal cliff these past years ... and the actions we took helped us avoid going over that cliff."
On the same night they passed the budget, council unanimously passed a strategic plan. The plan includes seven goals with three objectives each. Stegall said he expects the plan to go into effect Jan. 1, 2013. The goals include utilizing technology and partnerships to provide a safe community, and encourage private investments, job creation and a sustainable tax base.
Officials also unanimously passed a property tax levy of $40,507,000, a reduction of $5.4 million, or 11.8 percent from last year.

Upgrading to a state-of-the-art communications system is a massive leeap from the brick-style cellular telephones the department once used, Elgin Police Commander Bill Wolf told city council members Wednesday night during a Committee of the Whole meeting.
Wolf said the new communications partnership with Motorola will increase the department's communications abilities. The city's current communications system does not allow officers to communicate when they are outside the city limits, or if they "penetrate deep into a building," he said.
"Our current phone system is at the end of its life," Wolf said.
Elgin currently uses a Motorola SmartNet radio system originally purchased in 1995 and is the primary means of communication for the police and fire departments. However, Motorola is no longer manufacturing essential replacement components for this system, which means the city must purchase a new system. To keep the system operable Wolf said they have had to purchase parts through auctions and online from sites like eBay.
"Bottom line is we need a public radio system to operate in a safe manner to deliver the best service to the community possible," Wolf said.
The police and fire departments proposed joining Motorola's new StarCom communications program that is utilized by multiple agencies throughout the area.
Pat Hughes, a Motorola spokesman, said the communications system is part of a public-private partnership funded by the company and its state and municipal partners. He said Motorola upgrades the system biannually and allows subscribers to keep up with the latest in technology.
During the meeting Fire Chief John Fahy held up a radio used by his department and called it their lifeline. Like Wolf, he said the system will benefit the city departments and the public.
Wolfe said the current system costs approximately $160,000 annually to maintain, not including staff time. The new system has an annual cost of $250,000 per year.
"We won't have to come before you another 15 years down the line looking for money to upgrade the system because Motorola will be constantly upgrading it," Wolf said.
Council unanimously approved a bid of $11,687,108 for the new Motorola system.
Council also approved $592,394 for the purchase of four new ambulances for the fire department. The deal includes the trade in of two older ambulances. Without the trade-in the cost of four new ambulances would be $608,324, according to city documents.
"We spent some money tonight," Mayor David Kaptain quipped as council adjourned.