On August 18, 2022, a number of citizens gathered at the Elgin Knights of Columbus Hall and discussed the state of our community, with emphasis on businesses. As the conversation progressed, it turned to how funds can be found to improve the over-all state of our community. By the end of the evening, the majority agreed that towards looking into LB840 (see side bar) and utilizing sale tax funds would benefit the residents of Elgin and the surrounding area.
What many there learned for the first time was that there was a catch to the distribution of Elgin’s sales tax funds.
Elgin’s 1% city sales tax, since 2005, limits the allocations of those funds to specific “projects”. According to Elgin City Clerk Kristin Childers, the proceeds of the 1% sales tax (as set up in 2005) “shall be used as follows:
• 5% to economic development;
• 20% to street, water and sewer projects;
• 20% to youth, park and pool projects;
• 25% to fire and rescue projects;
• 30% to daily operations”
As a follow-up, the 30% to daily operations is currently all being allocated to help pay off the pool.
According to Elgin’s LB840 committee member Todd Heithoff, the committee is seeking to add 1/2 of a percent sales tax to be used for economic development needs that are currently ineligible to receive sales tax monies. “These funds could be used for building improvements, purchasing of land, many different business needs,” Heithoff told The Elgin Review. “We (the committee) would act only as an advisory board. We would pass our recommendation on to the city council. It would be up to them to approve any funds.”
A letter from the committee…..
“A time for growth. A time for revitalization.” These are the aspirations of many residents in and around Elgin. Elgin’s current motto states “Some bigger, some smaller, none better” and it has been a guiding principle for years. To uphold this tradition and improve Elgin, a committee of ten dedicated individuals has been formed. But how do we achieve this?
Here are the steps to put this “better Elgin” vision into motion:
Step One: Very soon, local residents will receive a survey seeking their opinions on how Elgin performs in various areas and what improvements are needed. While surveys can be time-consuming, they provide the community with a voice on necessary improvements. The committee cannot make these decisions alone—everyone, at every stage of life, has different needs and perspectives. The more surveys returned, the clearer the overall picture will be. Surveys are due by August 1st!
Editor’s Note: Be looking for your survey in the mail within the next week or so. An online form will also be made available for residents living outside of the city limits so they can have input. Watch The Elgin Review for more information on how to complete the survey.
Step Two: Based on survey results, the committee will develop a plan to best serve Elgin’s needs. The community will then be invited to a meeting where feedback and discussion on the proposed plan will be welcomed. With this plan, the committee aims to work with the City of Elgin to add LB840 to the November ballot. LB840, also known as the Local Option Municipal Economic Development Act, will allow Elgin to generate funds specifically designated for economic development projects within the community by proposing a half a percent increase to the current sales tax, which, according to City Clerk Kristin Childers, could provide approximately $50,000 annually based on the average of the last three years. These funds will be strictly allocated to projects addressing identified needs from the survey, such as building façade updates, startup assistance for new businesses, workforce housing initiatives, and expanding daycare options.
Step Three: Show up at the polls in November and vote YES to LB840!
Step Four: Encourage young people to move back and start businesses. Consider starting a business of your own. Apply for assistance to enhance your current business. Shop local to boost Elgin’s economy!
More information about Elgin’s plan for economic development and LB840 will be shared once the survey responses are reviewed. If you have questions in the meantime, please contact Todd Heithoff, Julie Schiltmeyer, or Kristin Childers at the city office.
The survey is an important step to help guide the future of Elgin. Please participate for the good of our community. If you have an older family member, help them complete a survey as everyone should have input.
