North Aurora staff outline FY 2025–26 budget priorities, propose water rate increase and grocery‑tax continuity

Village staff on Monday briefed trustees on key elements of the draft fiscal year 2025–26 budget and the near‑term schedule for public review and adoption, highlighting personnel costs, capital needs in the water fund, and the village’s plan to retain a local grocery tax after a scheduled state-level elimination.

A staff presenter, Jason, said the village is finalizing the budget document and expects to circulate a draft to the public within days, then return to the board for a more detailed departmental review. Jason summarized personnel assumptions used in the draft: collective‑bargaining increases of 3.75% for Public Works union employees and 3.5% for police sergeants; a proposed 3% increase for nonunion employees; health‑insurance premium increases (HMO about 6.5%, PPO about 11%); and a projected IMRF employer rate rising from 9.52% to roughly 11%.

Staff proposed several staffing changes: creation of an Administrative Operations Assistant to relieve event and packet work from the Community Relations Coordinator so that the coordinator can focus on outreach and economic development; one additional full‑time police officer (to replace an officer assigned full time as a school resource officer); a part‑time code enforcement position (about 10 hours per week); a part‑time custodian (about 15 hours per week) for the new public works facility; seasonal public‑works labor; and a full‑time water laborer. Jason said total full‑time equivalent positions would rise to about 78.7, an increase of roughly 4.07 FTEs.

Grocery tax: Jason told trustees that when the state eliminates the 1% grocery tax on Jan. 1, 2026, municipalities can adopt a local ordinance to reimpose it at the local level. Staff said the village currently receives about $600,000 annually from grocery taxes and that the draft budget assumes the village will re‑adopt the tax locally; to do so the village must file an ordinance with the Illinois Department of Revenue by Oct. 1 for a Jan. 1 effective date.

Water fund and rates: staff described rising water‑utility costs and capital needs. Jason said the village’s five‑year water plan anticipates cumulative rate increases and that, based on current projections and ongoing master‑planning work by EEI, staff recommends increasing the wholesale rate to $5.95 per 1,000 gallons next year. Trustees were told a full water system master plan from EEI is expected later this spring and will inform future rate and capital‑investment decisions; staff also proposed transferring some general‑fund surplus to the water fund to help cover near‑term capital work, including a central water tower project estimated to extend across multiple years.

Capital and debt: staff summarized capital projects (road program, Veterans Memorial phase 1, Orchard Gateway Road) and large water capital items including SCADA, electrical/grounding repairs at treatment plants, and a multi‑year central water tower project. Jason said the village carries water debt (about $3.0 million outstanding) with principal and interest for the year around $492,772, and public‑works facility bonds (2024 issuance, $13,665,000) with principal and interest projected next year at about $1,234,847.

Schedule and next steps: staff plans to circulate a draft budget to the public within a week, present a departmental review to the board on the 17th, and return for formal public hearing and adoption steps in April/May; Jason said staff will likely bring a grocery‑tax ordinance and the proposed water‑rate ordinance for board consideration on the May 5 meeting.