Batavia considers liquor tax, higher gas tax for 2016 budget
Editor's note: An earlier version incorrectly tied reasons for an increase in Batavia's overall proposed budget to the city's electric utility.
Getting a beer or filling up your gas tank could cost more next year in Batavia.
City alderman on Thursday indicated they would favor a 2 percent liquor tax and charging a penny more per gallon for gas rather than raising property taxes in the 2016 budget.
Finance director Peggy Colby had presented a budget that suggested a 7.8 percent increase in property taxes, which would mean the city would collect $900,000 more than in 2015's budget. Of that increase, $400,000 could be designated for drainage work. The rest would go for other purposes, including $288,000 for an increase in payments to the citys' pension funds for public-safety workers.
Only aldermen Alan Wolff and Dave Brown said the city should raise the property taxes at least a bit in case the state decides to enact a local property tax freeze.
Aldermen also said they favored drawing down reserves and also increasing the monthly fee for leaf-and-brush pickup to $4 to $3.
The budget presented Thursday presumes the city will receive $200,000 less in income tax from the state.
Doubling the gasoline tax to 2 cents per gallon would generate about $190,000 a year. A liquor tax might raise $300,000 a year, but that is a guess based on what St. Charles receives from its liquor tax, Colby said.
Neighbors North Aurora and Geneva don't charge a liquor tax, because they do not have home-rule authority and can't do so.
Aldermen agreed on some cuts, including not buying new signs for the two fire stations or hiring a communications coordinator.
Stormwater drainage has become a hot topic after the June storm that caused flooding in some areas. Even before that, though, the city commissioned a study of its drainage system, which said the city should be spending $1 million more a year on it.
The budget proposal presented Thursday was $103.1 million - about $8.7 million more than the city expects to spend for 2015. Nearly half the budget is for the electric utility.
Some of the budget increase is due to operating-cost increases, insurance and general fund activities, and capital projects planned for electric and sewer systems, Colby said.
Aldermen will discuss the budget again during at 7 p.m. Nov. 12. There will be a formal public hearing Nov. 16, and the city council will vote on the budget Dec. 7. The new fiscal year starts Jan. 1. See the budget and related documents at cityofbatavia.net.