Elgin seniors will get property tax refunds, but not next year

Senior citizens in Elgin can expect their property tax rebate checks from the city this year, but council members confirmed Wednesday the program would not continue in 2013.

When council members discussed the program in August they decided to revisit it this month with year-end results in hand, rather than revenue projections. The rebate is funded with money collected from taxes on the Grand Victoria Casino that go into the riverboat fund.

The revenue threshold for the riverboat fund to provide the rebates was set at $13.275 million in 1996. There was a concern this year the fund would not reach that level. But in the end, actual revenues reached $14.7 million and the council unanimously voted Wednesday to cut the checks.

“I’m glad that we are honoring the original intent of the agreement when the riverboat was established,” said Councilwoman Anna Moeller. “It’s always good to have more money than you think you’re going to have.”

Elgin residents older than 65 who qualify for the Senior Citizen Homestead Exemption with the state and have been the owner of a house or mobile home for at least a year can expect the rebate, which is $200 for those who own houses and $35 for those who own mobile homes.

Chief Financial Officer Colleen Lavery said the checks will be mailed out in late May.

Elgin has distributed almost $9.4 million to seniors since the program started and expects to spend $825,000 for the 2011 rebate.

Mayor David Kaptain confirmed Wednesday the latest payment will be the end of the rebate, regardless of riverboat fund revenues moving forward.

The five-year financial plan approved by council members in December eliminated the senior rebate from the riverboat fund expenditure list. The program’s future was not discussed during the committee of the whole meeting Wednesday, but Kaptain confirmed the program’s end when asked by former councilman Terry Gavin during the public comment section of the council meeting.

As to the extra $400,000 the riverboat fund took in above the earlier projections, Kaptain suggested discussing the possibility of a savings account for the city. He said the idea was brought up in the early 2000s but never acted upon.

“If we had done that 10 years ago we would have been in the range of 10 to 15 million in excess funds,” Kaptain said.

Kaptain said the “rainy day fund” would be something to discuss later in the year.