The proposed 2026 budget sparked a lengthy discussion, and for the first time in years, we had active public participation. While the specific increases are detailed below, it is important to note that the City will not get any revenue from the new casino complex opening this year.
Meeting Overview and Strategic Objectives
- Call to Order: The meeting was called to order on November 18, 2025, with a quorum present. The primary agenda item was the public hearing for the 2026 budget.
- Budget Philosophy: City staff presented the budget as focused on maintaining and improving municipal services while managing labor/material cost changes and supporting long-term growth.
- Strategic Alignment: The budget is guided by the 2024-2028 Strategic Action Plan. Staff emphasized a shift from an “austerity approach”—which would require service reductions due to a structural deficit—to an “investment spending” approach aimed at avoiding future decline.
Staffing and Personnel Requests
- Police Department:
- New Hires: The budget includes funding for two new police officers.
- Rationale: Current staffing is at 2008 levels despite significant community growth. The Police Chief explained that “minimum staffing” limits self-initiated activity (traffic enforcement, community engagement) and increases reliance on mutual aid during critical incidents.
- Impact: Low staffing affects morale, increases overtime costs, and prevents the department from fulfilling strategic initiatives like community preparedness classes.
- Fire Department:
- New Hires: The budget adds two firefighters, placing one additional person on each shift.
- Rationale: A manning study suggested a need for 12 additional personnel over time; this is an incremental step.
- Service Upgrade: This staffing allows the “squad” vehicle (which follows ambulances) to upgrade from Basic Life Support to Advanced Life Support, significantly improving emergency medical response.
- Management Analysts:
- Public Safety Analyst: One analyst will be shared between Fire and Police to assist with accreditation and grant funding.
- HR Analyst: One analyst will support Human Resources, which recently absorbed payroll duties, to focus on recruitment, retention, and wellness rebate programs.
- Council Discussion: An Alderperson questioned the immediate need for two analysts. Staff clarified that these roles act as “utility players” for data analysis and grant writing, noting that previous grant efforts (e.g., for EV chargers) have generated revenue far exceeding the salary costs.
Capital Projects and Future Facilities
- New Police Station:
- A space needs analysis confirmed the need for a new police facility.
- The budget proposes a 0.5% sales tax increase to begin saving for this facility, creating a “building fund” to reduce future borrowing needs and interest payments.
- The exact cost depends on whether the city pursues adaptive reuse of an existing building or new construction on a greenfield site.
- Infrastructure Maintenance:
- Staff noted that delaying spending on resources today results in higher costs later.
- Discussions highlighted that the city is playing catch-up on infrastructure projects, such as stormwater management, where being reactive is often more expensive than proactive planning.
Revenues, Taxes, and Financial Outlook
- Property Tax:
- The budget proposes a tax rate increase of 10 cents per $100 of Equalized Assessed Value (EAV) for both 2026 and 2027.
- For a $400,000 home, this equates to an increase of approximately $125 per year.
- Even with the increase, the tax rate remains near the average for similar Chicago-area municipalities.
- Sales Tax:
- A 0.5% Home Rule Sales Tax increase is proposed.
- Exclusions: Staff confirmed this tax does not apply to groceries or registered vehicles (due to state law).
- Application: It applies to general retail and goods purchased by visitors, not just residents.
- Vehicle Sales: While the tax doesn’t apply to vehicle registration, sales tax on vehicles (like those from the Tesla dealership) is collected at the point of delivery, which is Batavia.
- Reserves and Deficits:
- The city has a structural deficit where current revenues do not meet expenditures.
- The budget utilizes $1.2 million in reserves for 2025 and projects using $1.9 million in 2026.
- The goal is to stop relying on reserves by the 2028 budget, aided by property tax increases and new revenue sources like cannabis dispensaries and the Tesla dealership.
Financial Sustainability Indicators
- Data Presentation: An Alderperson presented graphs analyzing the city’s long-term financial health.
- Net Book Value: The value of city infrastructure relative to its installation cost has dropped to around 60%, indicating the city is spending enough to prevent failure but not enough to significantly improve asset value.
- Property Value: Adjusted for inflation, the total property value in the city has not fully recovered to pre-2008 recession levels.
- Infrastructure Burden: The ratio of infrastructure (e.g., water mains) per household has increased, meaning the maintenance burden per resident is higher than in previous decades.
- Density Strategy: To address these issues, the Council and staff discussed “infill development” and increasing density (e.g., downtown multifamily housing) to increase the tax base without significantly expanding the infrastructure footprint.
Operational Expenses & Commodities
- Budget Increases: An Alderperson asked about significant increases in “commodities” and office supplies across departments.
- Justification:
- Software: Much of the increase is attributable to software costs being categorized under commodities.
- Community Engagement: The Administration budget includes funds for “ward level community engagement events” (e.g., block parties).
- Phones: Costs increased due to a shift from flip phones to smartphones for Public Works staff, enabling the use of GIS “Field Maps” to improve efficiency and data collection.
Public Comment
- Resident 1: A resident with corporate management experience urged the Council to prioritize “practicality” over “proactivity”. He expressed a preference for hiring more officers (personnel) rather than funding a new police building, warning that high taxes might force long-term residents to leave.
- Resident 2: A resident expressed surprise at the existence of the meeting, noting a lack of awareness despite being active in county issues. This prompted a Council discussion on communication channels, including the city app, push notifications, the website, and public access TV.
Conclusion
- Vote: A motion was made to recommend Resolution 2025-128R (approving the 2026 budget) to the City Council. The motion passed with a “Yes” vote from the committee.
- Announcements: The meeting concluded with an announcement regarding a celebration for the food pantry’s relocation, funded partially by a federal grant.
Author: Jim Fahrenbach
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