By Jason Crane
The Aurora City Council unanimously approved a motion to hold the vote for a 1% tax on grocery items until the August 26 City Council meeting.
Hundreds of municipalities throughout the State have approved ordinances to impose a local tax to replace the State tax.
The Illinois state grocery tax of 1% is set to be eliminated effective January 1, 2026, as per Public Act 103-0781, and provides municipalities the authority to enact a local sales tax on grocery items. City officials are considering to implement the local grocery tax effective January 1, 2026 to avoid revenue loss and service cuts as a result of the State action.
City government of Aurora documents show the grocery tax in Illinois refers to the 1% sales tax on groceries that has been in place since the 1990 sales tax reform. The 1990 reform eliminated state taxation on groceries but provided for a 1% grocery tax imposed and administered by the State but distributed to local governments. It also standardized tax collection.
Public Act 103-0781 called for elimination of the State tax on groceries effective on January 1, 2026 but allowed the option for individual units of government to pass an ordinance allowing for the continued collection of the Grocery Tax via a locally imposed and administered tax of 1% on grocery items. The City would lose an estimated $4.5 million annually should it decide not to continue to collect the tax.
The proceeds of the tax will be distributed to the City by the State. The City records these revenues in the General Fund and they are utilized to provide services such as Police, Fire, Public Works, and other governmental services.
City officials emphasized this is not an imposition of a new tax. Passing the ordinance continues the current practice of collecting a 1% tax on the sale of grocery items that has been in place for 35 years.
The grocery tax is collected from everyone who purchases grocery items in the community, including non-residents. The Grocery Tax is applied to food that is not intended for immediate consumption, but is anticipated to be taken away from the premises where purchased, prepared, and consumed at a later time. A tax of 1% of the sales price of the item applies in this instance and is what City officials are referring to as the “Grocery Tax.” As noted earlier, this is not a new tax but a tax that has been in place since 1990. Passage of the ordinance allows for continued collection of this tax, providing revenue for essential City services.
Food intended for immediate consumption and restaurant food is taxed at the regular sales tax rate (8.25%) plus the Food and Beverage Tax (1.75%) for a total rate of 10%. The tax rate for food sales for immediate consumption is not impacted by the Grocery Tax.
The City’s Home Rule Sales Tax of 1.25% does not apply to items subject to the grocery tax.
If the City does not implement a grocery tax, it will lose approximately $4.5 million a year, potentially leading to budget cuts and reduced services.
As of June 26, 2025, 282 municipalities throughout the State have passed an Ordinance to impose a local tax to replace the state tax. An additional reference is a Grocery Tax Frequently Asked Questions from the DuPage Mayors and Managers Conference.
To implement a grocery tax, the City must pass an ordinance and submit it to the state by October 1, 2025, to ensure it takes effect January 1,2026.
Consumers are already paying the 1% state grocery tax and have been for 35 years. The local tax is simply continuing the practice of collecting the 1% sales tax on food items not intended for immediate consumption.
The City Council approved the following agenda items:
•An Ordinance was approved 9-3 to amend Article 44 Section 191 of the Municipal Code, “Hotel Occupancy Tax.”
The purpose is to seek a motion to amend the hotel occupancy tax portion of the Municipal Code. The changes sought are to increase the rate of the tax from 3% to 6% and to impose a flat $10 charge for the privilege of occupying a hotel room in the event that no cash charge is levied for the privilege. .
City government of Aurora documents show at this time, the City levies a tax for the privilege of renting a hotel room in the City limits. The rate of tax imposed is 3% of the amount of the room rental charge. Hotel operators collect the tax from their patrons and remit the proceeds to the City on a monthly basis. The City supports the operations of Aurora Area Convention and Visitor’s Bureau via an operating and services agreement. The City makes a financial contribution of support from the proceeds of the Hotel Occupancy Tax in accordance with the terms of that operating agreement. The level of support is in the amount of $225,000 annually.
Hotel Occupancy Taxes are common in Illinois municipalities. The City began levying the tax in the late 1980’s and the rate has not been adjusted in some time. The rate is now at the lower end of the spectrum compared to area municipalities. Rates of 5% and 6% are common in the area. Staff members are proposing an increase in the rate to generate additional revenue for the City. Proceeds would inure to the benefit of the General Fund.
At this time, the Hotel Tax generates approximately $550,000 on average each year. Increasing the rate to 6% would double the amount of the revenue collected based on existing hotel room inventory, resulting in approximately $1.1 million annually. In the coming months, the new casino will open and bring approximately 220 additional hotel rooms into the community, generating additional Hotel Tax revenue for the City.
It is important to note that these Hotel Taxes are not paid by residents but by visitors to the City. The increasing number of hotel rooms combined with the attractions that the City has such as the Paramount Theatre, the Outlet Mall, and the new Hollywood Casino soon to open will create an opportunity to generate significant new revenue for the City. This is an opportune time to address the Hotel Occupancy Tax rate.
In addition to increasing the rate, the proposed ordinance would also levy a flat $10 charge in the event that a hotel room would be granted to a patron free of charge or “comped.” City officials recognize that the new casino may offer incentives to various customers as rewards for loyalty and level of play. The City wishes to assure that Hotel Tax revenue collections do not suffer in this event. Assuming a 6% Hotel Tax Rate, the $10 flat charge would equate to a room with a rental charge of approximately $167.
Increasing the Hotel Occupancy Tax rate from 3% to 6% presents a very beneficial situation for the City to be able to generate additional tax revenue with essentially no impact to residents. The tax will be paid almost entirely by non-residents and visitors to the City who wish to take advantage of the many amenities and attractions that the City and the area have to offer. Additionally, the change in the rate will allow for the City’s tax rate to keep pace with the Hotel Tax rates in area communities.
Should the City not address the rate at this time, revenue which can finance City services will be lost and the City’s Hotel Occupancy Tax rate will lag the area market.
•A Resolution was approved to authorize the use of funds not to exceed $455,000 for Furniture, Fixtures, and Equipment (FF&E) for new fire stations 9 and 13.
The funding will be used to furnish new fire stations 9 and 13 with all furniture, fixtures, essential equipment, and other materials to ensure the operational readiness and comfort of fire personnel.
City government of Aurora documents show new fire station 13 is scheduled to open in December 2025, and fire station 9 to open in February 2026. Certain furniture, fixtures, and equipment for these stations have a long lead time per City vendors and orders need to be placed soon to guarantee delivery times and pricing.
Having a well-equipped fire station allows firefighters to respond quickly and efficiently to emergencies. Modern furnishings and updated equipment contribute to safer, healthier, working conditions for firefighters, reducing fatigue and improving morale, which directly impacts performance in high-stress situations. Having a new, well-furnished fire station shows commitment to community well-being and symbolizes the priority to public safety of residents and visitors of Aurora.
Funds of $455,000 have been included in the project budgets for FS 9 and FS 13 for FFE (furniture, fixtures, and expenses) costs. These amounts were presented to the council during the spring as a component of the comprehensive fire station cost discussions. $290,000 has been budgeted for FS 13 and $165,000 for FS 9. The amounts have been incorporated into the total costs for each station as discussed earlier this spring. The difference in funding allocation occurs because FS 13 is a brand-new response station for the Fire Department, and FS 9 is a relocation of a current station. The Fire Department will be moving functional items from the current FS 9 to new FS 9.
Staff members have worked diligently to produce an accurate estimation of the dollars needed to furnish and equip these stations. Although these figures are estimates based on current quotes and shipping prices that are constantly changing, City officials are confident these dollar amounts will sufficiently furnish both stations.
The Fire Department will work closely with the Purchasing Department to ensure that all purchases related to the furnishing of the new fire stations are made in full compliance with the City’s procurement policies. The Fire Department will adhere to all established guidelines to maintain transparency and fiscal responsibility during the purchasing process.
The process of arriving at the requested budgeted amount has been a work in progress over the past few months. The Fire Department formed a committee of six individuals and a member of Purchasing who made visits to IFB (Interiors for Business) in Batavia and TFC (The Fitness Connection) in Elgin, to address the needs of City stations. Both companies are part of buying cooperatives. The largest station purchases will be from these two vendors. Quotes have been provided, and orders are ready to be placed once the funds are approved.
The remaining station items have been brainstormed by the team and added to a working Excel document. As City officials have added items, they’ve estimated approximate prices and shipping on items, keeping in mind that these prices are constantly rising due to uncontrollable factors. In addition, City officials recognize that it’s a challenging task to anticipate everything needed before moving into a new facility, so reserves incorporated into the funding allocations for each station to cover such costs. The $455,000 is an estimate that includes all anticipated FF&E needs and reserves.
The money for this expenditure will come from general obligation bond funding as approved earlier this spring. These funds are included in the 2025 C General Obligation Bond Issue approved previously. Funds will be available in account 358-3033-422-72-35 under project code CO13 for station 9 and CO12 for station 13.
•A Resolution was approved appointing Stacey Peterson as chief financial officer / City treasurer.
City government of Aurora documents show the start date is approximately July 26, 2025 or as determined by the Human Resources Department.
•A Resolution was approved appointing Jason Bauer as director of Public Works / City engineer.
City government of Aurora documents show the start date is approximately July 23, 2025 or as determined by the Human Resources Department.
•A Resolution was approved appointing Henry Thompson as superintendent of Facilities Maintenance.
City government of Aurora documents show the start date is approximately July 28 or as determined by the Human Resources Department.
•A Resolution was approved to authorize the mayor and City clerk to execute a not-to-exceed agreement for Design Phase Engineering and Planning Special Services with Crawford, Murphy and Tilly, Inc. in the amount of $99,900 for the “Replace Airfield Signage, Wind Cones, Runway 15 and 27 REILs & Airport Rotating Beacon; Construct Guard Lights at Runway 15/33” Project (ARR-5201) at the Aurora Municipal Airport.
The purpose is to obtain City Council approval to enter into a Consultant Agreement with Crawford, Murphy and Tilly, Inc. to provide Engineering and Planning Special Services.
City government of Aurora documents show the City has been awarded funding for the replacement of Navigational Aids (NAVAIDS) and the installation of Runway Guard Lights at the Aurora Municipal Airport.
This project will replace certain NAVAIDS that have reached their service life and have become burdensome due to their poor reliability and increased maintenance demand. The Runway Guard Lights installation stems from an FAA Runway Safety Action Team meeting identifying safety concerns expressed by Air Traffic Control personnel and pilots alike. Runway Guard Lights are intended to provide additional warning to pilots that they are approaching an active runway and consist of flashing lights embedded into the taxiway pavement.
The total cost for this project is estimated to be $977,750. The City of Aurora’s Local Match is $37,499.
The total cost for this project has been set aside under CIP D058 in accounts 504-4454-433.73-99.
This project will have no adverse impact on the City of Aurora and will improve the Aurora Municipal Airport’s navigational aids and enhance the safety of the flying public.
•A Resolution was approved to authorize the execution of a labor agreement between the City of Aurora and the Aurora Supervisors Association (ASA) from January 1, 2026, through December 31, 2028.
The purpose is to obtain authorization to execute a labor agreement between the City of Aurora and the Aurora Supervisors Association (ASA).
City government of Aurora documents show the Aurora Supervisors Association (ASA) contract is expiring on December 31, 2025. Negotiations began on April 17, 2025, between the City of Aurora and the Aurora Supervisors Association (ASA). The Union ratified the contract on June 23, 2025.
Highlights for this agreement include wages at 4% for years 2026, 2027, and 2028. Additionally, the promotional process language was modified to ensure clearer parameters and consistency across all candidates.
•An Ordinance was approved to authorize the issuance and sale of Adjustable Rate Demand Economic Development Revenue Bonds, Aurora University, in one or more series, of the City of Aurora, Kane, DuPage, Will and Kendall Counties, Illinois, in an aggregate principal amount not to exceed $16,000,000, and confirming the sale thereof; authorizing the execution and delivery of a Loan Agreement, Trust Indenture, Bond Purchase Agreement and related documents; authorizing the distribution of an Official Statement; approving the delivery of a Letter of Credit, a Reimbursement Agreement and a Remarketing Agreement; and authorizing certain related matters.
City government of Aurora documents show as a home rule municipality, the City may issue Private Activity Bonds for qualified not-for-profit entities. Aurora University and the City have partnered in similar issuances in the past, most recently in 2019 and 2020. The University would like to issue new bonds for major capital improvements on the Aurora campus. A public hearing will be held giving notice for this issuance.
The City of Aurora and Aurora University have worked together to help build a premier campus in Aurora. Part of this relationship has involved the City’s assistance through the issuance of conduit financing in the form of Private Activity Bonds. Private Activity Bonds do not involve the City financial statements in any manner other than the recording of the transaction in the notes to the City’s financial statements in the Annual Comprehensive Financial Report. Aurora University pays the City’s out of pocket costs associated with this issuance. The City has confirmed that it has no liability for these bonds, actual or moral, through consultation with the City’s bond counsel Chapman and Cutler, LLP, and through auditor Sikich, LLC. This confirmation is stated in the documents that will be included in the total bond transcript. Use of Private Activity Bonds lowers the financing costs incurred by the University.
Aurora University approved a resolution at its May 2, 2025 Board of Trustees meeting for the issuance of the above bonds.
These improvements will involve substantial construction jobs for the community and will allow Aurora University to grow and remain a premier institution for higher education in Aurora and the Midwest.
The bond transcript documents outline the requested Private Activity Bonds for Aurora University in an amount not to exceed $16 million to finance new construction at Aurora University.
The bonds will be variable rate and should be issued at par, so there should be minimal discount or premium that would change the amount of the bonds from the actual bond proceeds. The not to exceed amount provides Aurora University with a measure of flexibility in the event of market fluctuations. Again, there is no liability to the City regarding these bonds. Bond proceeds may also be used to cover all or a portion of the costs of issuance.
The bond issue includes the (i) construction of a three-story 45,000 square foot learning commons (the “Learning Commons”) that will house the library, career services, study rooms, a café, a technology hub, the university archives, and a corporate lounge for employers on the Main Campus, (ii) acquisition and installation of certain furniture, fixtures, technology and equipment at the Learning Commons, (iii) repairs and upgrades to certain of the university structures including parking lots/garages and other structural components related to the Learning Commons, (iv) construction, repairs, and/or upgrades to certain university structures including, but not limited to roofs, parking lots/garages, and other structural components on the Aurora campus, and (v) other acquisition, construction, renovation, improvement and/or equipping of educational, athletic, and/or administrative facilities of the university and related infrastructure on the Aurora campus. Representatives from Aurora University will be available to explain the project further
This ordinance has no impact on the City’s financial statements or debt. This investment by Aurora University will improve the university’s financial status as well as provide funding for campus improvements keeping the university a premier institution in Aurora and the Midwest.
•An Ordinance was approved to amend the Ward 6 Budget for Fiscal Year 2025.
The purpose is to obtain the City Council’s approval of a proposed amendment to the 2025 Ward 6 budget.
City government of Aurora documents show a traffic study was conducted in various areas of the 6th Ward, and the results indicated that these locations would benefit significantly from traffic calming measures, such as speed radar signs. Alderman Michael Saville met with traffic engineers to discuss the advantages of implementing these changes.
The budget amendment of $40,000 will be made from the Ward 6 fund balance. This amount will be placed into account 316-4060-431.65-34. The check will be made out directly to the vendor.
The proposed traffic calming measures will have a positive impact on the general public and enhance safety. These improvements will be especially beneficial for the children in the impacted school zones.
•A Resolution was approved to authorize the purchase of Cornerstone’s OnDemand Public Sector eLearning Subscription in the amount of $106,658.60 from August 15, 2025, to August 15, 2028.
The purpose is to execute a renewal contract that allows Cornerstone to continue the eLearning platform as well as a Learning Management System. The curated online library is designed for public sector organizations and offers training topics centered around cultural competencies, inclusion and bias training, communication skills, change management and more.
City government of Aurora documents show the Equity Division and Human Resources collaborated in 2023 to implement this learning system which provided a much-needed training program to the City of Aurora. Cornerstone provides an easy and accessible on-line product that enhances the learning and development for all employees.
Cornerstone was identified through the Society of Human Resource Professionals. They were selected because they are an industry leader. They provide over 200 online courses curated specifically for public sector employees. In addition, they provide an integrated platform that includes solutions for LMS, Performance Management, Engagement Surveys, Recruiting and Onboarding, and Workforce Planning. No other service provider had the combination of public sector content and an integrated solution that would allow us to seamlessly add services over time.
With the renewal, the Cornerstone product has been integrated into the UKG programming.
Cornerstone’s motto is ‘Turning learners into leaders’. They offer learning content to build the skills of the future. They have 100 million users, 7,000 customers, operate in 180 countries and deliver content in 50 languages. The public sector content is a curated library designed to address talent shortages and provide staff members with critical skills necessary to successfully serve the Aurora community by building stronger communicators, strategic thinkers and higher functioning teams. Targeted content is focused on key skills such as:
Professional skills
-Communication
-Teamwork
-Business acumen
Modern Compliance
-Diversity & Inclusion
-Harassment, Discrimination & Safety
-Business Ethics & Corruption
-Leadership & Management
-Setting Direction
-Team Management
-Team Dynamics & Growth
Content is refreshed regularly, mobile ready and easy to deliver. Cornerstone’s Learning Experience Platform (LXP) is scalable with virtual eLearning, personalized for learners, fosters self-driven growth and provides learning insights through the reporting feature.
Funding for this project is budgeted under Human Resources.
•A Resolution was approved to authorize the execution of a Phase 3 Construction Engineering Agreement with HR Green, Inc. in the not to exceed amount of $199,731.00 for the 2025 City Wide Resurfacing Projects.
The purpose of this engineering agreement is to provide construction inspection and material testing services for the 2025 City Wide Resurfacing Projects.
City government of Aurora documents show the City plans to resurface 43.0 lane miles of streets for over $9.3 million across 2 Citywide Roadway Resurfacing projects. City staff members take the lead on construction observation and administering the project during construction. In order to oversee construction including inspections, work layout and fully document work, the City will require an experienced Resident Engineer to assist City staff members with this project. Material testing is also required to document work in accordance with Illinois Department of Transportation (IDOT) standards.
The City published a Qualifications Based Selection (QBS) for the resident engineer services on May 19, 2025. Five firms submitted their statement of qualifications (SOQ). Staff members reviewed the SOQs and determined that HR Green, Inc. of Aurora, IL was the most qualified with the top 3 firm’s scores. HR Green last performed the City Wide services for the City in 2021, and the same proposed main Resident Engineer was also the Engineer for the 2019 program.
This followed the Request for Qualifications process and is not subject to the local preference policy.
The Engineering Services Agreement from HR Green provides an experienced full time Resident Engineer, plus additional staff members as needed, for up to 992 hours and additional fees for a sub-consultant to provide Material Testing. HR Green will assist the Engineering Department with construction supervision on the 2025 City Wide Resurfacing projects as detailed in the scope of services in an amount not to exceed $199,731.00. This agreement includes some additional hours to potentially cover inspections and material testing on other City-wide projects including the R.O.W. Improvement Program.
•A Resolution was approved to authorize the director of the Purchasing Department to award contracts for the Citywide Mowing Bid 25-013 lists A,B,C,E-2, F, I, and J to vendors Groundworks Land Design (Plainfield, IL), Beary Landscaping (Lockport, IL), and Apex Landscaping (Hawthorne, IL).
The purpose is to proceed to the next bidders under bid 25-013 and enter a contract agreement with Groundworks Land Design (Plainfield, IL), Beary Landscaping (Lockport, IL), and Apex Landscaping (Hawthorne, IL) for city-wide mowing on city owned rights-of-way and city owned property.
City government of Aurora documents show the City solicited bids from contractors under bid 25-013 for city-wide mowing of rights-of-way and city owned property. Property First Landscaping (Hazel Crest, IL) was awarded the majority of the bid lists (R25-110), however failed to conduct work required under the bid requirements. Following this failed attempt to begin work, staff members worked with Law and has determined to move on from one of the three vendors chosen. The Purchasing Division contacted the next lowest, responsible vendors for each list, Groundworks (Plainfield, IL), Beary Landscaping (Lockport, IL), and Apex Landscaping (Hawthorne, IL), to confirm they were still interested and they were able to take on the locations.
The upcoming selection of three mowing contractors – Groundworks Land Design, Beary Landscaping, and Apex Landscaping play a critical component of the City’s ongoing commitment to maintaining clean, safe, and aesthetically pleasing public spaces. These contractors will play a vital role in the efficient upkeep of city owned rights-of-way, roadways, public facilities, and other municipal properties that contribute to the overall quality of life for Aurora residents. As a result, the updated and ongoing scopes of work for the remaining contractors are estimated at $485,571 for lists A,B,C,E-2,F,I, and J which are managed by Public Works, Property Standards, and Fleet & Facilities.
The various departments who will be utilizing the Mowing Landscape Maintenance services of these contractors have appropriated monies for these expenditures in the following accounts: 101-4060-431-36-15, 101-1827-424-36-14, 101-4010-417-36-15 and 510-4058-511-36-15. The total amount actually spent each year is weather dependent.
Failure to award the next bidders would place each department in a financial loss, force unintentional operational changes, budget amendments, and loss of public services.