YORKVILLE – The city of Yorkville’s annual balancing act for the coming budget year is notable for two big ticket items that will affect municipal finances for years to come.

They are of course the $120 million project to connect the city with Lake Michigan as its water source and at least $23 million for a new public works garage.

Both of those projects will be financed over the course of many coming years, but the Fiscal Year 2024 budget year, which will begins May 1, gets that process started.

The city administration is proposing a $23 million balanced general fund budget, down slightly from last year’s spending plan.

But true expenditures for the city, including a $21 million capital budget along with utility enterprise funds, are slightly more than $55 million, Finance Director Rob Fredrickson said.

The Yorkville City Council will hold a public hearing on the budget at its March 28 meeting. Approval is expected at either the April 13 or April 27 meeting.

But before they approve the plan, aldermen will need to decide whether they are going to impose a tax on food and beverages at Yorkville restaurants and bars, or raise water rates for the second year in a row.

A 1% tax on prepared meals and drinks would bring in an estimated $700,000 a year in revenue for the city. A second water rate hike is expected to bring in a similar amount.

For budgeting, the city is only counting on an additional $350,000 this year, with either the food tax or the water rate increase expected to be imposed midway through the fiscal year.

The city is planning to spend about $10 million on water-related projects as part of the budget.

These include nearly $4 million to replace leaky water mains, about $3.5 million to rehabilitate a well and nearly $2 million for other work directly related to the plan to connect the city will the DuPage Water Commission’s pipeline.

The goal of the water main replacement project is to get the city’s water-loss rate down to less than 10%, which is a requirement for communities sourcing their water supply from Lake Michigan.

Currently the city loses about 14% of it treated water supply through aging pipes dating from the 1970′s.

Meanwhile, the city is appropriating $3 million to get the public works garage project underway. The city has already acquired property in an industrial park just west of Route 47 on the far north side of the community.

Here too, aldermen face a policy decision. It comes down to the size of the facility and how much council members are willing to pay for the project, which is now estimated at between $23 million and $30 million.

The budget also includes money for the city’s ongoing “Road to Better Roads” program to repave city streets.

The spending plan includes $1 million in motor fuel tax revenues and another $1.15 million from the city-wide capital development fund.

The city will spend $1.1 million on the Kennedy Road-Freedom Place intersection project, but this money will be reimbursed through grant funds.

The budget also includes $2 million for operations and capital improvements at the Yorkville Public Library.