$135 Million Draft Budget Set For Upcoming Batavia Fiscal Year

BATAVIA, IL — A total draft budget of $135.7 million for the 2022 fiscal year has been set in Batavia, and overall, the city is in "a very healthy financial position," City Administrator Laura Newman said in a letter to Mayor Jeffery Schielke and the city council.

The total draft budget includes operations and capital improvement projects, of which 66 are planned as part of the 2022 capital improvements plan. Some include City Hall renovations, the Windmill Cove electrical underground, and the design of the Prairie and Wilson railroad crossing and intersection.

The total budget for 2022 is about $26 million over the projected spending in 2021 due to planned capital spending of $38.8 million, the budget shows. That's compared to $18.8 million projected in capital spending in 2021.

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The general fund budget of $31.1 million increased by $1.8 million, or 6.1 percent, compared to the prior year's projected spending, Newman wrote. About 79 percent of operating costs in the general fund are related to personnel.

In the city's budget book, last updated Monday, wages and benefits account for an increase of $1.7 million, while professional services are expected to increase by about $526 million.

Property tax rates, except for Equalized Assessed Value, and electric rates won't see an increase in the drafted budget, but water and sewer rates will go up a respective 3 and 8 percent starting in January, according to city documents. Property tax is budgeted $238,000 higher to reflect an expected growth in EAV, which is about $0.737 cents per $100, documents show.

Projected revenue by source for 2022 includes about 38.2 percent in electric revenue, 7.7 percent in sales tax, 7.5 percent in property tax and 5.1 percent in sewer fund, among other sources. Historically, electric revenue brings in the most money for Batavia.

Although Batavia continues to be impacted by the effects of the COVID-19 pandemic, there's been a steep increase in new business and development in the city, including Raising Cane's on Randall Road, which will also soon be the home of new Starbucks and Chipotle locations.

Several infrastructure plans are in place for 2022, including engineering a solution to flooding issues in the Carriage Crest neighborhood, located on Batavia's northwest side. Phase 1 engineering of the second phase of reconstruction of Main Street, from Van Nortwick to Randall Road, is also anticipated, which will include adding a pedestrian and bicycle-safe passage across Randall, either above or below the road, according to Newman.

One Washington Place, a luxury apartment and mixed-use development project, is also expected to break ground next year after several setbacks, Newman said. The project uses tax increment financing to incentivize investments and increase the property value of the building.

Newman also said the market for talent is tight, so to stay competitive and equitable, both internally and externally, she said some jobs have been reevaluated to allow for some changes "to reflect a more appropriate position within the organization." Some jobs in electrical engineering have been unfilled for more than a year, according to the letter.

A levy of $2.7 million for the police pension fund is included in the drafted budget, and another $1.21 million will be contributed to the fire department pension fund. Currently, police pensions are funded at 56.1 percent, while fire pensions are 67.9 percent funded.

"While the city has always funded the recommended amounts or more, the percent funded is affected mainly by return on investments and unplanned disability pensions as well as people living longer," the budget summary reads.

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