West Chicago weighs replacing lost municipal grocery tax as council confronts slim budget margins

Mayor David Bovey convened a special West Chicago City Council workshop to review preliminary general fund revenue forecasts and solicit public feedback as the city faces the end of the municipal portion of Illinois’ grocery tax.

“ We called this special meeting to hear from staff about budget, about our revenue forecasts, and to give you the opportunity to be involved in this process,” Mayor Bovey said as the meeting opened. City finance staff told the council the municipal portion of the state grocery tax will lapse at the end of the year, creating a projected general fund shortfall if the city does not replace that revenue.

Nikki, the director of finance, said the city’s preliminary estimate for 2025 general fund revenues is $23,717,800 — roughly $66,200 above the adopted 2025 budget — but that some line items are swinging materially. “We’re estimating that we’re going to end the year at $23,717,800,” she said, and noted a $183,100 shortfall in permits, licenses and registrations driven by weaker building‑permit receipts and an uncertain outlook for red light‑camera enforcement revenue after cameras were taken out of service. On the cameras: “As we sit in mid‑August with no information from IDOT as to when or if the cameras are going to be restored,” Nikki said, the city cannot assume that revenue will return.

Staff explained that the municipal portion of the grocery tax represents about $425,000 in annual revenue the city currently receives; replacing that municipal share with a local ordinance would be a one‑for‑one swap. Council members discussed two front‑running options: reinstate the municipal grocery tax locally (1%) or adopt a 0.25% home‑rule sales tax. Staff estimated a 0.25% home‑rule sales tax could yield approximately $1.2 million, while a one‑percent grocery tax would make up about $425,000. Ms. Messino, in the presentation, emphasized an Oct. 1 filing deadline if the council wants either tax in effect January 1.

Council debate emphasized competing priorities and equity concerns. Alderman Dimas backed the grocery tax as a straightforward replacement of lost revenue, saying it would be less noticeable because residents already pay it. Alderman Alcántar‑García favored the home‑rule sales tax as a larger, longer‑term revenue source to fund priorities such as downtown revitalization. Alderman Morano warned a sales tax that raises the town’s overall rate substantially could be a heavier burden on residents. Alderman Myers urged better data on who bears sales‑tax burdens (residents vs. nonresidents) before deciding.

Public commenters urged caution about adding taxes. Jeff Johnson, a resident, said, “When is enough and enough to be asking the citizens of this state to keep being paying more,” and urged the council to prioritize cuts and efficiency. Other residents proposed alternatives including revisiting cannabis dispensary policy and pursuing administrative savings such as hiring freezes or voluntary early‑retirement incentives.

Beyond the grocery/sales tax question, staff presented broader budget context: a targeted 35% fund‑balance policy (roughly four to five months of spending), a projected 2026 revenue baseline of about $23.59 million if no new taxes are enacted, a building‑permit shortfall that drove down permits/licensing revenue, and volatile personal property replacement tax (PPRT) projections. Staff also flagged a possible $27 million public‑works consolidation concept and ongoing community park planning; roughly $6.2 million sits in the park fund and a $2 million grant award was noted but not yet received.

No tax ordinance or other revenue measure was approved. Mayor Bovey said the meeting was intended to “pull back the curtain” and share the data; council members asked staff for follow‑up analysis on distributional impacts, revenue sensitivity, and alternatives to new taxes. Staff agreed to produce additional information and to circulate materials publicly. A motion to adjourn was made by Alderman Hallett and seconded by Alderman Stout; the council voted voice‑ayes and the meeting ended without formal action on taxes.

What’s next: staff will return with more detailed fiscal analysis, including updated month‑end revenue receipts and scenarios that lay out the distributional impact of a grocery tax versus a home‑rule sales tax; the council must decide whether to file an ordinance by Oct. 1 if it wishes either measure to take effect on Jan. 1.