The overall sales tax in Batavia will soon be increasing to 8.5%, after the City Council moved to approve a 0.5% hike in the local sales tax at its meeting on Monday.
The purpose of the hike, the city says, is to fund a future police department facility for the city.
In January, FGM Architects, which the city hired to evaluate its current police facility and plan for the future, presented recommendations to the Batavia City Council regarding issues with the current headquarters, per a memo from City Administrator Laura Newman. It was ultimately determined that the city would either need to do an adaptive reuse of an existing building or create a new facility for the police based on site constraints at the current facility.
The Batavia Police Department is currently housed in the Batavia Government Center at 100 N. Island Ave.
The idea for a local sales tax increase is that the city could accumulate funds in anticipation of a future police facility project, what Newman’s memo calls a “save-then-spend” model. The plan is aimed at reducing how much debt is issued for the eventual project, the memo notes, “thereby lowering interest costs and long-term financial obligations.”
And it spreads the cost of the police facility beyond Batavia residents, Newman’s memo notes, pointing to the Randall Road corridor’s retailers and the revenue they generate from out-of-town shoppers.
The sales tax hike will not apply to groceries, vehicles, medical items, prescriptions and services like lawyers, accountants and hairdressers, Ald. Jennifer Baerren said at Monday’s City Council meeting, where the measure was approved unanimously by the council.
Baerren explained that the money generated by the sales tax hike would go into a restricted capital reserve fund for the future police facility.
The tax increase will take effect on July 1, according to the ordinance approved Monday.
According to Newman’s memo, the city will be developing an FAQ and summary for the community of the rationale for the police facility project, hosting community engagement events to gather resident input and providing updates through the city’s website, newsletters and social media.
mmorrow@chicagotribune.com
