City's proposed electricity rate hike in the spotlight

Batavia city officials will conduct a public meeting at 7:30 p.m. Monday Feb. 24 to discuss a proposed electric rate increase and a possible half-cent hike in the city’s sales tax to cover electricity costs and related obligations incurred through the city’s involvement in the Northern Illinois Municipal Power Agency (NIMPA) and Prairie State Energy Campus in downstate Illinois. 

The meeting should be a good opportunity for Batavia residents and business owners (more on this group below) to learn why the city’s has increased electric rates four times since 2006 and why rates need to be increased in 2014. I think Batavia officials can do much more to share information with the public (the city's website is overdue for an overhaul), but this public meeting is a step in the right direction. 

Proposed sales-tax hike concerns business owners

Friends in the Batavia business community tell me many business owners oppose a possible half-cent increase in the city’s sale tax, as discussed above. I spoke with several business owners during the past — each asked that I not identify them here  — and they shared some common concerns.

The business owners believe a hike in sales tax will make it tougher for them to compete with businesses in other communities. That’s a practical concern.  They fear a tax increase tied to electricity costs will never be rescinded and might be increased in the future. They also think a tax hike, combined with the city’s high electric rates, will make Batavia less attractive to new businesses or businesses looking to relocate to Batavia. They told me they have shared these concerns with city staff and aldermen.

City officials argue a hike in the sales tax would allow them to limit the increase in the electricity rate to 10 percent. Without the hike in the sales tax, the rate increase would be 16 percent, according to city officials. Business owners said combining a tax hike with a rate increase only confuses matters and keeps ratepayers from understanding the true cost of Batavia's electricity. They have a point.

What I found particularly interesting about the concerns the business owners shared with me is how their take on all of this contrasts with the version some Batavia aldermen shared with me in recent days. Aldermen I spoke with told me they have heard few objection about the proposed tax increase from the business community. Makes me wonder why their is such disparity between the two versions.

Research group issues report about Batavia’s energy costs

The Institute for Energy Economics and Financial Analysis recently released Overpriced Energy: Why Batavia is Paying so Much for Electricity, an eight-page analysis of Batavia’s contract with the Prairie State Energy Campus. The report offers interesting information and some grim conclusions. I encourage Batavia ratepayers to read the report. 

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Restaurant Week returns to St. Charles

More than 30 restaurants are set to take part in the annual St. Charles Restaurant Week, starting Monday, Feb. 24 and continuing through Friday, Feb. 28. Diners can receive a 25 percent discount on dine-in meal purchases by presenting a special coupon for the event. For more information, including a list of participating restaurants go to 

www.stcharlesil.gov/restaurant-week

Kane County Chronicle launches Election Central

The Kane County Chronicle recently launched Election Central 2014, a web page containing information about the candidates in the March 18 primary elections and the questions that will appear on local ballots. The Chronicle does a fine job covering state and local races, so be sure to visit Election Central. Get yourself informed about the candidates and the issues they’re talking about during this election cycle. 

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http://www.ieefa.org/