City Council — Naperville, IL
Date: 2022-11-21

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



 Meeting Agenda

 City Council

Monday, November 21, 2022 6:30 PM Council Chambers


 Budget Workshop III



A. CALL TO ORDER:

B. INTRODUCTION:

C. PUBLIC FORUM:

D. PRESENTATION:
1. 22-1439 2023 Annual Operating Budget and Capital Improvement Program
 Workshop #3

Q. 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 630-305-5205 (TDD) 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 11/18/2022

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



 Meeting Minutes

 City Council


Monday, November 21, 2022 6:30 PM Council Chambers

 Budget Workshop III


A. CALL TO ORDER:

 Chirico called the meeting to order at 6:30 p.m.
 Present: 9- Mayor Steve Chirico
 Councilwoman Jennifer Bruzan Taylor
 Councilwoman Patty Gustin
 Councilman Paul Hinterlong
 Councilman Ian Holzhauer
 Councilman Patrick Kelly
 Councilman Paul Leong
 Councilwoman Theresa Sullivan
 Councilman Benjamin White




 Also Present
 City Manager, Doug Krieger; Deputy City Manager, Marcie Schatz; City
 Attorney, Mike DiSanto; Director of Community Services/City Clerk, Pam
 Gallahue; Fire Chief, Mark Puknaitis; Police Chief, Jason Arres; Director of
 Finance, Rachel Mayer; Director of Human Resources, James Sheehan;
 Director of IT, Jacqueline Nguyen; Director of TED, Bill Novack; Deputy Director
 of TED, Jennifer Louden; Deputy Director of TED, Allison Laff; Director of Public
 Utilities - Electric, Brian Groth; Director of Public Utilities - Water, Darrell
 Blenniss, Jr.; Director of Public Works, Dick Dublinski, Director of
 Communications, Linda LaCloche; Budget Manager, Ray Munch

 Daily Herald, Naperville Sun, NCTV-17


B. INTRODUCTION:

C. PUBLIC FORUM:

 Amy Phillips (The Conservation Foundation) voiced support for the plan to
 replace turf with native vegetation given the sustainability and maintenance
 benefits.

 Chirico asked Dublinski to clarify the pricing difference between native
 vegetation and turf.


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City Council Meeting Minutes November 21, 2022

 Dublinski noted that staff does not have a firm grasp on the maintenance and
 implementation pricing difference yet and that the proposed three-four year pilot
 program will provide information on what it will take to build and maintain native
 vegetation.


D. PRESENTATION:

1. 2023 Annual Operating Budget and Capital Improvement Program Workshop #3

 Munch discussed major funds, a revenue and expense summary, and noted the
 budget is balanced without any new taxes or fees for the residences. Mayor
 Chirico noted that the budget being presented is $14.8M over budget and
 questioned how that would be resolved. Munch explained the current cash
 balance as well as delayed payments on CIPs will resolve that issue.

 Munch discussed the Maintenance and Operating Funds revenues and
 expenses. Discussion around the Commuter Parking Fund began with
 Councilman White asking staff what the future of that fund looked like. Munch
 and Rachel Mayer noted that staff continues to monitor the fund and will
 suggest changes to the parking rates if needed. Bill Novack also mentioned we
 have blocked certain lots to cut the cost on plowing and maintenance with
 revenues being down. From there Councilman Kelly asked what makes up the
 Commuter Parking Fund expenses to which Mayer explained the expenses
 come from maintenance, labor to maintain the parking lots, and collection fees.

 General Fund revenues and expenses were also discussed. Mayor Chirico
 asked why interfund transfers are considered an expense if they are balanced
 out by other fund transfers. Munch noted this was listed as an expense from an
 accounting perspective. Mayor Chirico also inquired about the removal of the
 vacancy factor. Mayer explained it makes sense to keep it out for now given the
 number of retirements that are happening and are coming in the near future, but
 it is something staff continues to monitor. Councilwoman Sullivan asked about
 union vs non-union wage increase. Mayer explained that unions will see a 2.5%
 increase on average in 2023 but there are other factors that go into this and lead
 to higher annual union wage increases. Council discussed collective bargaining
 and Jim Sheehan noted there is not currently a way to directly compare union
 vs non-union wages.

 Following this discussion, the presentation on utilities revenues and expenses
 began. Electric Utility revenues are being budgeted with $9.12M of potential
 federal grant money for capital projects. It was noted that we do not currently
 believe we will qualify for any federal funding for water capital projects, but this
 is something we continue to monitor.

 This portion of the presentation finished up with an outline of the Capital & Debt
 Service Fund, Capital & Bond Projects Fund, and Special Funds. Councilman
 White asked if the City was getting any money from electric vehicle registrations
 to make up for loss revenues in the Motor Fuel Tax. Munch explained the City
 does not see any vehicle registration money but noted IDOT is currently looking
 into ways revenue can be made up from the increase in electric vehicles. Mayor

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City Council Meeting Minutes November 21, 2022

 Chirico confirmed that revenues from the Library and Naper Settlement go
 directly to their funds, this was confirmed by staff.

 Mayer discussed how the City has exceeded the financial principles.
 Councilman Holzhauer asked if staff recommends keeping a cash balance of
 35% or go back toward the principal of at least 25%. Mayer noted that some of
 the cash balance will be used to support capital projects, but will stay around
 30%. The topic of the Community Risk Reduction program was discussed and
 lead into a discussion of how recruiting levels for both the Fire Department and
 the Police Department are down. Both departments are looking at different
 ways to address this but acknowledge it will take time to do so.

 Krieger recommended increasing the beautification budget $250K. Council
 agreed and would like to see a plan for how this money will be spent and
 encouraged resident input.

 Krieger recommended keeping the $450,000 in the budget for Fredenhagen
 Park Fountain repair. Council concurred and asked staff to continue to look for
 ways to reduce expenses.

 Krieger recommended a non-union merit of increase of 4% which totals
 $300,000 and results in no increased taxes to residents.

 There was a lack of consensus to approve the merit pool as recommended as
 well as a lack of consensus as to how much to reduce the merit pool.
 Councilman Kelly offered a compromise of a 3% merit pool increase and a 1%
 one-time bonus for non-union staff.

 Chirico noted that Council must agree on a percentage in order to pass the
 budget on December 6 because Councilwoman Gustin is vacating her seat and
 being sworn in at DuPage County on December 5.

 Council concurred with a 3% merit pool increase and a 1% one-time bonus for
 non-union staff.


Q. ADJOURNMENT:
 Council adjourned the 2023 Annual Operating Budget and Capital Improvement
 Program Workshop #3 of November 21, 2022 at 9:10 p.m.




 /S/ Sherrian Kelly
 Budget Analyst

 /S/ Nick Krueger
 Budget Analyst




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