Yorkville to collect 1% meal and drinks tax starting Jan. 1, 2024

YORKVILLE – The city of Yorkville will be collecting a new 1% restaurant tax on prepared meals and drinks starting Jan. 1, 2024.

After months of consideration, the Yorkville City Council approved the tax on a 7-1 vote at its June 27 meeting.

The tax is designed to generate revenue for funding the massive $120 million Lake Michigan water project. The “places of eating” tax includes tavern drinks and delivered meals and is expected to produce $700,00 a year for the city.

Aldermen were faced with the choice of enacting the new tax or subjecting Yorkville households to a water rate increase for the second year in a row.

Having discussed the question at previous meetings, the council voted without fanfare. The lone no vote was from Third Ward Alderman Chris Funkhouser.

Voting yes were First Ward Aldermen Daniel Transier and Ken Koch, 2nd Ward Aldermen Craig Soling and Joe Plocher, 3rd Ward Alderman Matt Marek and 4th Ward Aldermen Seaver Tarulis and Rusty Corneils.

The city is about to issue $11 million in bonds to fund this year’s round of infrastructure and planning work related to the project to bring Lake Michigan water to the city.

With populations increasing and the aquifer becoming depleted, Yorkville has banded together with Oswego and Montgomery to build a pipeline connecting to the DuPage Water Commission system that provides lake water.

Water rate-payers got a respite this year but future rate increases are certain, city officials said.

The alternative to the restaurant tax was an increase in water rates of about 15% to 18% which would produce about the same $700,000 a year in revenue and costing the typical Yorkville household an additional $5 to $10 per month.

Last year, the city increased its base water rate for the first 350 cubic feet of water consumed from $17 to $24. A “volumetric” rate for every 100 cubic feet of water over the first 350 was increased from $4.30 to $4.80.

The typical residential household uses about 1,200 cubic feet of water per 60-day billing cycle, for a total cost of about $64.80. One cubic foot of water is about 7.5 gallons.