Batavia tax levy moves closer to approval, tax hike debate continues

Batavia residents may see a smaller tax hike than originally planned, as City Council members continue to debate whether to cover expenses by increasing taxes or by dipping into reserve funds.

With the city facing a $3.5 million projected deficit in 2025, Finance Director Peggy Colby originally presented a plan to levy an additional $1 million in property taxes and use $2.5 million of reserve funds to cover the rest of the deficit.

At recent meetings, City Council members debated whether they should use more reserve funds in order to avoid raising taxes or save the reserves for budgeted projects.

The last time Batavia residents saw an increase in their city property tax bill was in 2017 to fund storm sewer projects and several new staff positions.

The total original estimated 2024 property tax levy was $11,310,000, a 21.49% increase over 2023, which equates to a $1 million increase to the property tax rate. This would amount to a 7-cent tax increase per $100 of equalized assessed value or a tax increase of about $67 a year on the city portion of the tax bill for the owner of a $300,000 home.

Several council members have argued against the tax increase at recent meetings, and at the Committee of the Whole meeting Tuesday, recommended reducing the levy increase to $500,000 and using $3 million of reserve funds to cover the deficit.

Those who argued most strongly against the increase included aldermen Jennifer Baerren, Tim Lanci, Abby Beck and Mark Uher. Baerren argued that those hit hardest by the increase would be the lower income tax brackets and expressed concern that they would be pricing people out of the community.

Mayor Jeff Schielke was also on the side of reducing the tax increase, arguing the city is in good financial shape with a great deal of unrealized revenue on the horizon thanks to growth from increased development and new business.

Those arguing in favor of the tax increase were aldermen Alan Wolff, Leah Leman, Kevin Malone, Dustin Pieper and Sarah Vogelsinger. Wolff argued that a tax increase is inevitable, with the need for more staffing and rising costs expected to continue to increase the deficit in the coming years.

Committee members made the recommendation for the reduced levy in a 8-5 vote with aldermen Tim Lanci, Dustin Pieper, Kevin Malone, Leah Leman and Nicholas Cerone voted no.

If the newly recommended levy amount is approved, the $500,000 tax increase would increase residents’ property tax rate by about 4 cents per $100 of taxable property value, or an increase of about $34 a year for the owner of a $300,000 home.

The total proposed budget is $164,106,570, an increase of about 6.5% over the 2024 budget. According to budget documents, the increase is needed to cover increased costs of wages and pensions and capital projects, including a new roof for City Hall and street improvements.

One of the biggest expenses in the budget is funding three new staff positions: a firefighter, an assistant public works director and an engineering technician. Several other positions were also needed but were not funded in 2025, including two more firefighters, two police officers, a public safety analyst, an HR analyst, and a vacant IT position that was approved earlier this year.

Committee members recommended approval of the budget as presented in an unanimous vote at the Nov. 26 meeting.

The budget and levy will come back before the City Council on Dec. 2, where council members will have their last chance to change the levy amount before granting final approval.