Elgin’s budget task force is considering whether the city should start putting some of its riverboat revenue toward operating expenses as the city faces a $4.5 million structural deficit in the coming year.

The group also took a look at each of the agencies and projects funded by Grand Victoria Casino revenue in an effort to find places to tighten the budget, though no formal recommendations were made.

The riverboat fund was established in 1994 and Chief Financial Officer Colleen Lavery said it generally is spent on three areas – capital expenditures; agency and organization funding; and one-time, non-operating expenses.

However, she also acknowledged there have been exceptions to that policy over the years. While the city historically has been adamant about not relying on the money to subsidize its general fund, there is some crossover between the two, such as a one-time expenditure on road salt. In addition, the city no longer makes residents purchase a vehicle sticker, which would put $1.7 million into its coffers. Instead, the city gets that money from the riverboat and deposits it in the general fund.

Lavery asked task force members Tuesday if they would like the city to change its policy on how riverboat money is spent.

“You’re already using riverboat money for operating expenses so why shouldn’t the policy reflect that?” Patricia Segel said.

But Keith Rauschenberger said perhaps the policy should be tightened to try to avoid spending the money on costly multi-year programs.

“I think the idea behind the riverboat fund originally is it was found money, it was to be used for extra, one-time instances and I think that’s served the city well,” he said. “I think S&P and the rating agencies look at that very well, so I think we need to be very very cautious about transferring things from the riverboat fund into the general fund unless it’s a one-time item.”

Toby Shaw said there should be a provision in the policy that says for large capital projects, there should be a method identified to pay for ongoing costs to operate them.

“We’ve got so many parks and so many different things we’ve built through this, but now it comes payday we can’t actually operate them,” Shaw said.

City Manager Sean Stegall told the group one option, which he’s suggested in the past, is using riverboat revenue primarily for things that either generate money or save money for the general fund.

The 13-member task force broke into three small groups to discuss the specific agencies and projects funded by riverboat revenue, which is on the decline. Total revenue is expected to be just above $13 million this year.

Among those line items are groups like the Boys and Girls Club, Neighborhood Housing Services and the Elgin Public Museum. The list also includes traffic signal upgrades, property acquisition, grant programs, senior citizen property tax rebates, warning siren upgrades and $1.7 million to make up for the lack of a vehicle sticker.

At least a few task force members said they wouldn’t mind the city re-instituting a vehicle sticker to help with the shortfall. Jen Carr said most other cities have one, and Segel said it wouldn’t have to be expensive. Chairman Carl Missele suggested the sticker price be about $50, roughly the cost of a tank of gas, though Carr thought that might be too much.

Segel and Missele also said they wouldn’t mind eliminating the annual $200 rebates for senior citizen homeowners. Due to a decline in riverboat revenue councilmen are deciding if and how to proceed with that program, but have put off that choice until later this year when they have a more definite total.

In the end, Segel’s small group said it found little it wanted to cut, but that many line items can be reduced.

A group, led by Thomas Sandor, suggested suspending grant programs for at least a year and reevaluating them.

The task force did not make any formal recommendations Tuesday about the riverboat fund policy or individual expenditures. It will meet again at 6:30 p.m. Sept. 13 at The Centre, 100 Symphony Way.