Kane County Reporter

City of Batavia Committee of the Whole met Nov. 4

Here are the minutes provided by the committee:

1. Call to Order

Chair Wolff called the meeting to order at 8:06 pm.

2. ROLL CALL

Present: Barazza, Beck, Pieper, Malone, Wolff, Solfa, Barren, Leman, Ajazi, Malay, Uher, Cerone, Vogelsinger

Absent: Lanci

Also Present: Mayor Schielke; Laura Newman, City Administrator; Peggy Colby, Director of Finance; Lori Botterman, Communications Manager; Max Weiss, Management Analyst; Chief Shawn Mazza, Batavia Police Department; Gary Holm, Director of Public Works; Wendy Bednarek, Director of Human Resources; Chief Craig Hanson, Batavia Fire Department; Howard Chanson, Director of Information Technology; Scott Buening, Director of Community and Economic Development; and Kate Garrett, City Clerk.

2. REMINDER: Please Speak Into The Microphone For BATV Recording

3. ITEMS REMOVED/ADDED/CHANGED

none

4. MATTERS FROM THE PUBLIC: (For Items NOT On The Agenda)

none

5. Discussion: 2025 Budget (PC)

City Administrator Newman introduced the discussion on the 2025 budget, which is available here.

She noted that the General Fund and Electric Utility do not have sufficient revenues to cover the operating budget.

She recommended that the best way to meet the shortfall is a modest increase to tax rate combined with expenditures from the reserve budget. Presently, the city is at about double the policy in terms of reserves. The administration is recommending an increase in the tax rate from 72.9 to 79.9.

Newman noted that there are about 7 staff positions recommended for city functionality, which are not included in the budget as presented. Administration works to keep staff growth very intentional and measured to avoid any future need to cut staff.

Finance Director Peggy Colby then addressed the Council. She requested that the aldermen prioritize a decision on the proposed property tax increase, which would need to be published in the near future. The budget link is on the front page of the City of Batavia website. Director Colby reviewed the document for the Council. She opened the floor to questions

Ald. Cerone asked Director Colby to review the reserve policy. The minimum is 60 days reserves for the general fund, 90 for utility. Most cities in the area have more in reserve in the general fund than 60 days.

Mayor Schielke noted that Batavia has had support in the past from federal representatives to help fund infrastructure projects.

Ald. Malay asked about the state grocery tax going away in 2026. Colby noted the deficit in the city government created by the loss of this revenue stream would be around 1.2 million. She said that as a home rule community, Batavia could maintain the grocery tax.

Ald. Leman asked about the staffing needs and what can be done to plan to meet those needs in the long term. Colby responded that there aren’t that many options to increase revenue but new retail options may generate new sales tax. Newman added that growing sales tax would be part of a strategic change implemented incrementally to help close the gap between staffing needs and revenue. Ald. Wolff said that continuing to grow the EAV without backing off the property tax rate will help to keep the revenue in the budget necessary to fund a functional city staff.

Ald. Uher noted incremental increases add up over time and that there might be measures in the strategic plan that are too ambitious. He also noted that each year the reserve fund appears healthy at the end of the year.

Colby noted that technology costs, construction costs, and pensions will continue to rise.

Ald. Pieper asked for a chart to show annual capital improvement funding projected and actual. Director Holm suggested that it is more useful to look at longer blocks of time when considering capital projects because they can be delayed by external forces by years.

Colby said that the proposed property tax increase would affect the projects in the general fund.

Ald. Wolff reminded the Council that the increase would only be on the 10% of the tax bill the City levies.

6. OTHER

None seen.

7. ADJOURNMENT

Motion by Ald. Solfa, seconded by Ald. Malay, to adjourn. Motion carried by voice vote.

The meeting adjourned at 9:05 pm.

https://www.bataviail.gov/AgendaCenter/ViewFile/Minutes/_11042024-2333