Batavia's proposed 2027 budget focuses on infrastructure, public safey, financial stability

$173.36 million plan addresses aging infrastructure and future needs

BATAVIA, IL (Date Oct. 30, 2026) — The City of Batavia has released its proposed $173.36 million budget for fiscal year 2027, prioritizing aging infrastructure, public safety and essential municipal services while continuing efforts to strengthen the City’s financial position.
With projected revenues of $163.58 million, the budget addresses a growing challenge: Much of Batavia's infrastructure was built during the 1980s and 1990s, leaving roads, water mains, sewers and electric facilities approaching the end of their useful lives at roughly the same time.
“The central theme of this budget is stewardship of what we already own: keeping our infrastructure safe and reliable, staffing our departments to complete the work we budget for, and planning far enough ahead that future repairs are funded before they become emergencies,” City Administrator Laura Newman wrote in her budget transmittal letter.
The proposal reflects progress in addressing a structural budget deficit identified in 2025. Phased property tax adjustments, new development revenues and operational improvements have helped narrow the gap between recurring revenues and operating expenses.
Although proposed expenditures exceed revenues, the difference largely reflects nonrecurring costs, including redevelopment project transfers, an additional payroll period that occurs approximately every 11 or 12 years, and street maintenance funded through reserves.
“This budget reflects the progress we've made toward long-term financial stability,” said Finance Director Peggy Colby. “We're using reserves strategically for one-time needs rather than relying on them to fund day-to-day services, putting the City in a stronger position to address future challenges.”
 
Addressing aging infrastructure
A 2026 pavement assessment found that maintaining Batavia's streets in their current condition will require an additional $1.625 million annually. The proposed budget uses reserves to address that need in 2027 while the City evaluates a permanent funding source.
Timely maintenance is critical because streets that deteriorate beyond routine repair may require reconstruction at approximately seven times the cost.
The budget also funds electric system reliability improvements, water infrastructure upgrades and investment in the wastewater lift stations.
 
Proposed tax and utility rate adjustments
The budget includes the second phase of a property tax adjustment initiated in 2025 to address the City’s structural deficit.
The City's property tax rate would increase from $0.86 to $0.96 per $100 of equalized assessed valuation. For a home valued at $400,000, the increase would be approximately $10 per month, or $120 annually, in the City's portion of the property tax bill. The City’s share accounts for approximately 12% of a property owner’s total property tax bill.
Proposed utility rate adjustments effective Jan. 1, 2027, include:

• Electric: 3.5% increase to energy and demand rates for system reliability, maintenance and debt obligations.
• Water: 8% increase for aging infrastructure and regulatory requirements.
• Sewer: 8% increase for wastewater treatment improvements and related debt obligations.

The adjustments reflect rising construction and equipment costs, regulatory requirements and maintenance needs deferred in previous years.
 
Investing in public safety and City services
The budget continues investments in public safety, including setting aside revenue from the previously approved half-percent home rule sales tax increase to help fund replacement of the aging Police Department facility and reduce future borrowing.
It also supports an advanced life support squad in 2027 and proposes expanding the Police Department's evidence custodian position to full-time to manage increasing volumes of physical and digital evidence.
Two additional Public Works positions, a civil engineer and maintenance worker, are proposed to support development reviews and facility maintenance.
 
Planning for Batavia's future
The budget reflects continued residential and commercial growth, including the Winding Creek and Ashton Ridge subdivisions, while advancing strategic priorities such as infrastructure planning, online permitting and a planned real-time electric outage information system.
“While the City has made important progress in strengthening its finances, we recognize that significant infrastructure needs remain,” Newman said. “Our responsibility is to address those needs thoughtfully, maintain reliable services and make decisions today that help protect Batavia's financial future.”
 
Public review and next steps
The City Council will review the proposed budget at a Committee of the Whole meeting following the 7 p.m. City Council meeting Monday, Nov. 2. A public hearing is scheduled for 7 p.m. Tuesday, Nov. 10, with final budget and property tax levy adoption anticipated Monday, Dec. 7.
Residents can review the proposed budget, financial details and capital improvement plans at bataviail.gov/FY27, where an online form is available for questions and comments.
 
About the City of Batavia
Located along the Fox River in Kane County, Batavia is a full-service community of approximately 27,000 residents. The City of Batavia provides a wide range of municipal services, including police and fire protection, water and wastewater services, electric utility operations, and public works. Guided by its Strategic Plan, Batavia is committed to responsible growth, sustainability, and enhancing quality of life for residents, businesses, and visitors.