Elgin planning on less income from the casino

The city of Elgin is getting less and less money every year from the Grand Victoria Casino, which has been affected by the statewide smoking ban and general economic decline, city officials said Wednesday.

And the threat of casino patrons choosing to go to the new casino in Des Plaines when it opens next fall indicates things might not get better.

“You don't have to be a rocket scientist to know we're not going to have as many funds,” said Elgin Mayor Ed Schock, who was in Springfield Tuesday to lobby against a bill that would add slot machines to racetracks like Arlington Park.

So city analysts are planning accordingly in their 2011 proposed budget, by estimating proceeds from the casino to be $16.5 million a 14 percent drop from this year.

Money from leasing riverboat property, admissions and gaming taxes have been used to fund city projects; the number of projects is expected to drop to 77 next year from 110 in 2008.

The city council on Wednesday also discussed the proposed budget for the general fund, which handles basic services.

Reserve money will be used to plug a $1,74 million deficit that has resulted from increased participation in the city's early retirement incentive program, which increased pension liability to the Illinois Municipal Retirement fund. Over 75 percent of costs in the general fund are from earnings and benefits.

The city expects $1.75 million from new revenue sources in 2011.

Starting next year, the city will begin prosecuting DUI arrests in its own adjudication court. Those cases previously would be handled by Kane or Cook County circuit courts. That move is estimated to bring in $250,000 a year. City Manager Sean Stegall said the cases would be contracted out to attorneys, and is a fairly common system in DuPage County towns. About 350 DUI incidents occur in Elgin every year, he said.

Sales taxes generated by the planned October 2011 opening of Super Walmart is expected to bring in $750,000 to the city next year, and $40 million in revenue over the next 15 years.

The new Rosen Kia dealership is expected to generate $402,500 in sales tax revenue.

Impact fee revenue is estimated to be $347,500 as roadway projects are completed.

Colleen Lavery, the city's chief financial officer, warned councilmen that an additional revenue source could be needed by 2012 if revenues from sales, income and property taxes don't increase.

The council will discuss user fees and other funds at its Dec. 1 meeting at 5 p.m. Budget adoption is expected Dec. 15.