Good, not-so-good news

By on May 6, 2011

The good news
According to census data, the village of Elburn grew by nearly 20 percent since its last census, from 4,700 to 5,602.

The not-so-good news
The state may rescind a program in which the state returns a portion of state-collected income taxes back to local municipalities. According to Village President Dave Anderson, this could eliminate $114,000 from the village budget.

Census shows village grew significantly; state may harm village finances
by Lynn Meredith
ELBURN—At its meeting on Monday, the Elburn Village Board received news that the official census report from the state lists Elburn with 5,602 residents—up from 4,700 at its last census. Board President Dave Anderson said that the number is higher than anticipated. With that number in mind, he made the board aware of two sets of pending legislation that could greatly impact the village if passed.

The first proposed legislation would rescind the Local Government Distribution Fund (EGDF), that gives back to municipalities a portion of the income tax collected by the state.

“At 5,602 (population), we should be receiving more (tax money) than the 4,700 (population) number,” Anderson said. “We would be getting $114,000. Folks, that’s 30 percent of our entire budget. Lopping off that kind of money (from our budget would) be very, very painful.”

The EGDF was established in 1969, when municipalities agreed with then Governor Oglive to support a state income tax on the condition that municipalities receive a portion of monies collected from their residents.

Currently, the state of Illinois is three months behind in its payments, not just to Elburn, but to all municipalities.

The second proposal is to allow businesses to credit their sales tax in places other than where they are located. Anderson opposes this piece of legislation on the grounds that whatever sales tax is extended in your community should stay in that community.

“Both items, the EGDF and the sales tax, is just our own money coming back to us,” Anderson said.

About Lynn Meredith

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