City Council — Naperville, IL
Date: 2022-11-09

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



 Meeting Agenda

 City Council

Wednesday, November 9, 2022 6:30 PM Council Chambers


 Budget Workshop II



A. CALL TO ORDER:

B. INTRODUCTION:

C. PUBLIC FORUM:

D. PRESENTATION:
1. 22-1342 2023 Annual Operating Budget and Capital Improvement Program
 Workshop #2

E. CLOSED SESSION:

F. 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 11/4/2022

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



 Meeting Minutes

 City Council


Wednesday, November 9, 2022 6:30 PM Council Chambers

 Budget Workshop II


A. CALL TO ORDER:

 Chirico called the meeting to order at 6:30 p.m.
 Present: 6- Mayor Steve Chirico
 Councilman Paul Hinterlong
 Councilman Ian Holzhauer
 Councilman Patrick Kelly
 Councilwoman Theresa Sullivan
 Councilman Benjamin White
 Absent: 3- Councilwoman Jennifer Bruzan Taylor
 Councilwoman Patty Gustin
 Councilman Paul Leong




 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; Naperville
 Library Executive Director, Dave Della Terza; President/CEO Naper Settlement,
 Rena Tamayo-Calabrese

 Daily Herald, Naperville Sun, NCTV-17


B. INTRODUCTION:

C. PUBLIC FORUM:

 Mary Lou Wehrli requested more oversight on dollars going toward the
 Naperville Heritage Society, requested that at least 50% of the food and
 beverage tax go toward SECA, applauded maintenance of City infrastructure
 and encouraged development of a new agreement with Naper Settlement.


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 George Howard encouraged the City to proceed with the road construction
 project extending Book Rd from Hassert Blvd to 119th St.

 Barb Benson, co-chair of NEST, noted NEST's approval of sustainability
 initiatives in budget but encouraged City to focus on sustainability in all areas of
 the budget and not just on items specific to sustainability plan initiatives.


D. PRESENTATION:

1. 2023 Annual Operating Budget and Capital Improvement Program Workshop #2

 Krieger began by providing an overview of the budget discussions to date.

 Mayer reviewed projected utility revenue, including customer charges and
 potential grant funding.

 Chirico questioned if the 80% Federal/20% city cost is typical for grant-funded
 projects and Councilwoman Sullivan asked if the 80/20 was for the 5-year
 period and should the allocation be reduced to 70/30. Mayer responded that no
 determination has been made due to a lack of agreed-upon funding, and further
 discussion will be made with Council on acceptance of the grant.

 Councilman Kelly questioned how staff will manage logistics of water main
 replacements in areas that do not have a lot of open spaces. Blenniss noted
 space issues can be a challenge but staff will use the parkway and facilities as
 needed. Councilwoman Sullivan asked if whether any lead will be left once the
 project is done. Blenniss explained that the state allows up to 15 years but the
 goal is to be done within the next 3-5 years. Councilman White asked about the
 water replacement vehicles to get information on what will happen with old
 vehicles. Mayer noted that it depends on the vehicle, some go to auction, some
 are traded in, some are kept for replacements given supply issues. White then
 suggested possibly providing old vehicles to neighboring communities. Mayor
 Chirico noted that the maintenance value of the utilities is higher than he
 recalled in previous years, he asked if it was worth updating the rate study now.
 Mayer noted the current rate study did take these projects into place and we do
 not want to take too much from the current generation if most of the benefits are
 for later generations and suggested not making any rate adjustments at this
 point.

 Mayer outlined the new position in the Water Utility and the programs and the
 budgeted amount/funding source. Councilman Holzhauer asked how the
 customer programs are being marketed. LaCloche noted they are being posted
 through the newsletter, social media, and other City communication outlets.

 Krieger outlined revenue sources to provide quality of life services. Mayor
 Chirico asked what amount of hotel & motel tax goes towards development
 incentives. Krieger noted approximately $1.3M out of the $3.6M will go toward
 incentives. Holzhauer asked if the $5.5M in real estate transfer tax was too high
 for the 2023 budget. Mayer noted it is lower than the last two years.



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 Krieger introduced several sustainability initiatives. Councilman Hinterlong
 asked if any money was left for lawn equipment rebates. Krieger confirmed the
 allotment for the pilot was expended in less than a week but more funding is
 being requested for 2023. Mayor Chirico asked about the additional
 maintenance cost for the native vegetation. Dublinski and Krieger explained the
 first year is a pilot year and that staff is replacing turf to offset some cost, but
 the real cost difference will not be fully determined until the pilot is complete.
 Councilman Kelly asked about alternative fuel vehicles, confirmed the $924K
 was the total cost for just the vehicles, and requested more information
 regarding cost difference. Dublinski noted departments are working together to
 get everything we need in place for expanded EV use. Holzhauer suggested
 looking at lifetime cost difference in electric vs gas vehicles.

 Krieger outlined beautification efforts. There was Council consensus that more
 than $100K should be allocated and urged for staff to incorporate public input
 and develop a more structured plan for this initiative.

 Krieger discussed Riverwalk improvements, specifically the Fredenhagen Park
 Fountain. Councilwoman Sullivan identified this as an area where staff should
 look to save money. Chirico agreed and asked staff to come back with more
 recommendations.

 Councilman Hinterlong asked if any funds raised by the state from electric
 vehicle purchases were shared by the state. Krieger said it does not so the
 motor fuel and local gas taxes could see decreases year over year, staff is
 monitoring this. The Mayor asked about EV taxes on electric utilities bills to
 replace missing funds from the motor fuel tax. Krieger noted there is no real
 solution identified yet.

 Schatz discussed transportation projects and touched on the personnel request
 from TED to help manage these projects. Hinterlong asked about lead time with
 dump trucks and other large vehicles. Dublinski noted lead times are between
 12-24 months depending on the vehicle types.

 David Della Terza, Executive Director of Naperville Public Library, noted merit
 increases are planned at 4% for 2023. Councilman White inquired about staffing
 levels. Della Terza explained that there are difficulties in some positions, but the
 library is doing their best to stay competitive in the market. The Mayor also
 asked about the increase in cost of labor the library is experiencing. Della Terza
 noted it is around 3.6%, he noted it could have been higher but given recent
 retirements they were able to manage this some. Della Terza is going to get
 back to the Mayor regarding the difference in budget with a 3% merit increase
 compared to a 4% increase.

 The workshop recessed from 8:30 p.m. - 8:36 p.m.

 Rena Tamayo-Calabrese, President and CEO - Naper Settlement, outlined the
 2023 budget proposal. Mayor Chirico asked about gate admissions and how
 revenues can increase if the new buildings won’t be done until the fall.
 Tamayo-Calabrese explained that one is ready and one is delayed. Councilman
 Hinterlong asked if the 15% decrease in school experiences was due to

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 physical field trips not happening. Tamayo-Calabrese noted that is due to field
 trips not happening, and while the Settlement offers virtual options, they do not
 drive as much revenue.

 Tamayo-Calabrese stated a 4% merit increase proposed for 2023.

 Sullivan asked what the strategy was in place for large events.
 Tamayo-Calabrese noted that staff is still determining what the large events will
 look like moving forward and that will be a part of the long-term plan. Sullivan
 asked if the capital campaign would be all external and Tamayo-Calabrese
 noted it would be. Tamayo-Calabrese then talked about the master plan and
 how it will be ready by 2024 once construction is done. Mayor Chirico raised
 concerns about event driven fees being transferred from Naper Settlement to
 Naperville Heritage Society (NHS). Tamayo-Calabrese noted that all the money
 generated goes towards the museum, NHS money and City money does not
 cross over. If The Mayor asked to see more transparency with NHS
 expenditures, that questions regarding Naper Settlement should be included in
 the 2023 citizen survey, and that City staff be included in the Settlement's
 master plan discussions.

 Mayor Chirico asked if staff had any recommendations for how to spend APRA
 Funds. Krieger explained there are recommendations and there is not a plan to
 bring any during the budget cycle. The funds do not need to be committed until
 2024 and the City has until 2026 to spend. Mayer noted staff is discussing the
 financial principles with the Financial Advisory Board.

 Krieger noted there were recommendations where Council did not have
 consensus and that there would be communication regarding these items prior
 to Workshop #3.

E. CLOSED SESSION:
 A motion was made by Councilman Hinterlong, seconded by Councilman White,
 to recess to Closed Session to discuss 120/2(c)(3) Filling a Vacant Public Office;
 120/2(c)(11) Pending Litigation; 120/2(c)(21) Approval of Minutes and to adjourn
 the workshop at the conclusion of Closed Session. The motion carried by the
 following vote:

 Aye: 6- Chirico, Hinterlong, Holzhauer, Kelly, Sullivan, and White

 Absent: 3- Bruzan Taylor, Gustin, and Leong

F. ADJOURNMENT:
 Council adjourned the 2023 Annual Operating Budget and Capital Improvement
 Program Workshop #2 and Closed Session of November 9, 2022 at 10:44 p.m.




 /S/ Sherrian Kelly
 Budget Analyst



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City Council Meeting Minutes November 9, 2022

 /S/ Nick Krueger
 Budget Analyst




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