City Council — Naperville, IL
Date: 2024-11-12

400 S. Eagle Street
 City of Naperville Naperville, IL 60540



 Meeting Agenda

 City Council

Tuesday, November 12, 2024 6:00 PM Council Chambers


 Budget Workshop III



A. CALL TO ORDER:

B. INTRODUCTION:

C. PUBLIC FORUM:

D. PRESENTATION:
1. 24-1328 Annual Budget Workshop #3: 2025 Annual Operating Budget & Capital
 Improvement Program Overview

E. ADJOURNMENT:
 Any individual with a disability requesting a reasonable accommodation in order to
 participate in a public meeting should contact the Communications Department at least
 48 hours in advance of the scheduled meeting. The Communications Department can
 be reached in person at 400 S. Eagle Street, Naperville, IL., via telephone at
 630-420-6707 or via e-mail at info@naperville.il.us. Every effort will be made to allow
 for meeting participation.




City of Naperville Page 1 Printed on 11/8/2024

400 S. Eagle Street
 City of Naperville Naperville, IL 60540



 Meeting Minutes - Final

 City Council


Tuesday, November 12, 2024 6:00 PM Council Chambers

 Budget Workshop III


A. CALL TO ORDER:

 Wehrli called the meeting to order at 6:00 p.m.
 Present: 9- Mayor Scott Wehrli
 Councilwoman Jennifer Bruzan Taylor
 Councilman Ian Holzhauer
 Councilman Patrick Kelly
 Councilman Paul Leong
 Councilwoman Allison Longenbaugh
 Councilman Josh McBroom
 Councilman Benjamin White
 Councilman Nathan Wilson




 Also Present
 City Manager, Doug Krieger; Deputy City Manager, Pam Gallahue; City Attorney,
 Mike DiSanto; Assistant to the City Manager, Marcie Schatz; Fire Chief Mark
 Puknaitis; Police Chief, Jason Arres; Director of Finance, Raymond Munch;
 Director of IT, Jacqueline Nguyen; Director of TED, Bill Novack; Director of
 Public Works, Dick Dublinski; Director of Public Utilities - Electric, Brian Groth;
 Director of Public Utilities - Water, Darrell Blenniss; Director of Community
 Services, Melanie Marcordes; Director of Human Resources, Blaine Wing,
 Director of Communications Linda LaClouche; Deputy Director of Finance,
 Brent Strumpf, Budget Analyst Sherrian Kelly; Budget Analyst Nick Krueger

 Daily Herald, Naperville Sun, NCTV-17

B. INTRODUCTION:

 City Manager, Doug Krieger, began the presentation by providing an overview of
 the agenda.


C. PUBLIC FORUM:

 No speakers for Public Forum.

D. PRESENTATION:


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City Council Meeting Minutes - Final November 12, 2024



1. Annual Budget Workshop #3: 2025 Annual Operating Budget & Capital Improvement
 Program Overview
 Krieger then turned the presentation over to Finance Director, Ray Munch.
 Munch began by outlining the major considerations that went into developing the
 2025 budget and the theme associated with the budget. It was explained that
 through the process staff was able to find net budget reductions of $5.7 million
 and where these reductions were found. Next, Munch outlined the property tax
 levy. It was noted the 2024 property tax levy totals $58.88 million and will be
 used to support the 2025 budget. Munch continued by outlining the different
 components of the property tax levy and provided detailed information about
 how the property tax levy could mean for the average taxpayer in Naperville.
 Council inquired about the impact to the property tax levy if full values for
 proposed Police positions were included in the budget. Munch noted that you
 would be putting those dollars against the levy, and as a result the rate would
 increase. Council also inquired about what City operations means in terms of
 the property tax. It was noted this represents about 10% total cost to operate
 public safety, but these dollars are not earmarked.

 Next a summary of the capital plan was outlined. It was noted that the 2025
 capital plan totals $179 million; from there high-level components of the capital
 budget were outlined. Munch touched on carry forward projects, and the areas
 that require a high level of investment. The next portion of the presentation
 provided an overview of the five-year CIP. It was explained that staff develops
 the CIP on five-year basis and projects in future years change as the City’s
 needs change. Staff communicated that the five-year CIP is presented with the
 budget but only one year is approved at a time. Munch concluded this section of
 the presentation by outing the total budget number, how it compares to previous
 years, and the implications of the property tax levy. Council inquired about
 funding associated with the potential Nichols Parking Deck project. Staffed
 explained this project is budgeted in future years, but there are not specific
 funds set aside for this project. This would be largely funded by the Downtown
 Parking Fund and if the project does not move forward that Fund would continue
 to support repairs and maintenance of existing parking decks.

 Munch started the next section of the presentation by providing a refresher on
 the budget structure. Then an overview of the Maintenance and Operating
 Funds was presented. The information presented included estimated cash
 balances, revenue and expense summaries of the General Fund, and details on
 some potential challenges ahead.

 Munch then outlined the 2025 budget for the Electric Utility Fund. Details on
 what is creating changes in revenue and expenses for 2025 was provided.
 Council then pause and discussion on the underground work Electric Proposed
 in their CIP ensued. A number of questions were asked about the reliability
 metrics associated with the Electric Utility and how these may change if
 underground work is approved. Electric Director, Brian Groth provided
 information about outages, how quickly these outages are fixed when they
 happen underground versus above ground, and the overall impact of overhead
 lines on reliability. A series of questions was asked about funding this work.
 Staff noted it would not recommended to use excess cash from the General
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City Council Meeting Minutes - Final November 12, 2024

 Fund. It was also noted that if this project did not move forward these dollars
 would be reallocated to other capital projects. Some members of Council
 expressed concern over the project given the dollar value and required increase
 headcount. As a result of this discussion a show of hands was asked for to
 determine if the underground project should remain in the 2025 budget; 5
 members of Council were in favor of keeping this in the budget.

 Next the Water Utility Fund was outlined. In this section Munch outlined both
 2025 revenues and expenses across the Water Utility Fund. Staff highlighted
 key components driving budgetary changes in the Water Utility Fund. There was
 no additional questions, and the presentation shifted to Capital and Debt Service
 Funds.

 The purpose of Capital and Debt Services Fund was outlined. The information
 presented included estimated cash balances of these Funds, and a more
 in-depth overview on the Capital Projects Fund. Munch highlighted the major
 changes anticipated in the Capital Projects Fund in 2025.

 The next section of the presentation looked at Special Funds. It was explained
 the Special Funds exist for specific purposes and generally do not have reserve
 requirements so the City will intentionally spend these Funds down in some
 situations. Munch specifically outlined some key changes in both the Food and
 Beverage Fund and the Downtown Maintenance Fund. This section of the
 presentation concluded with a brief history of the Downtown Maintenance Fund.
 The current SSA that makes up the Downtown Maintenance Fund is set to
 expire in 2025, and the City will need to be renewed. As a result, Munch gave a
 high-level overview of what this renewal process will look like. Munch then
 turned the presentation back over to City Manager Krieger.

 Krieger concluded the presentation by recapping the main takeaways from the
 night and outlined the next steps which includes voting on the budget and
 passing the property tax levy. The floor was then opened up for final questions
 and discussion.

 Council initially inquired about how guaranteeing MCIT stays in the budget will
 affect the property tax levy. City Manager Krieger noted the positions are in the
 budget but will be dependent on a revenue replacement for the grocery tax
 being identified in 2025. Council asked for a way to keep the positions
 regardless of if a revenue replacement was identified. Staff noted the property
 tax is the only revenue source we have complete control over, and keeping
 these positions if a revenue replacement was not identified for the grocery tax
 would require an increase in the tax levy. Council continued this discussion by
 asking about the timeline of revenue replacement for the grocery tax, what
 some of the replacement options may look like, and if the MCIT has always
 been dependent on a revenue replacement for the grocery tax. Staff explained
 the reason MCIT, and other General Fund FTE requests are dependent on a
 revenue replacement, and what could potentially happen if a replacement
 revenue is not implemented including budget cuts. Council expressed some
 concerns over this. A show of hands took place to identify who supported
 changing the 2024 property tax levy, only one member was in support for this.


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City Council Meeting Minutes - Final November 12, 2024

 Council then began having some discussion on the City’s DEI funding. Some
 members of Council spoke in support of DEI while others thought this was an
 area to explore budgetary cuts. No action or official request came from this
 discussion. No additional discussion took place, and the meeting concluded.




E. ADJOURNMENT:

 Budget Workshop #3 adjourned at 7:52 p.m.




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