Naperville City Council 2026 Budget Workshop (Oct 28, 2025)

The Naperville City Council convened for the second of three workshops to discuss the proposed 2026 operating budget, focusing on balancing revenues and expenses amid moderating tax revenues and rising personnel costs. The meeting featured presentations from city finance staff, department heads, and community partners, followed by public testimony and extensive council deliberation. No final budget actions were taken during this workshop; however, significant discussions were held regarding the SECA funding cap, community broadcasting support, and strategic planning for special areas.

Public Comments & Testimony

• Marilyn Schweitzer (Citizen):
  • Expressed support for the theme "money with a mission" and acknowledged staff efforts in publicizing the budget.
  • Expressed concern regarding insufficient staff capacity, noting that current resource levels risk "penny wise and pound foolish" long-term outcomes.
  • Stated support for a comprehensive city website strategy that must include an open data portal and a improved help center.
  • Expressed opposition to "waffling" on planning strategies for the I-88 corridor and argued for prioritizing the Fifth Avenue area first, citing fewer complications and better public input.
  • Stated that data centers should not be approved in areas currently slated for residential development.
  • Expressed support for raising the SECA funding cap only after a thorough public analysis of the food and beverage tax and SQL obligations is completed.

Consent Calendar

• No items listed in the transcript for the Consent Calendar; the meeting proceeded directly to public comments and the budget presentation.

Discussion Items

• 2026 General Fund Overview & Revenue Forecast:

  • Deputy City Manager Ray Munch presented a balanced budget of $685 million, noting a $4 million deficit that was addressed by correcting a utility billing error.
  • Speaker Position Summary: Staff clarified that the corrected electric use tax error will generate $1.8 million in 2026. Councilman Kelly expressed concern regarding equity by not backbilling the $1.8 million to 2025, but staff maintained support for a forward-looking correction to avoid upsetting business budgets.
  • Health Insurance Costs: Councilman McGroom expressed shock at the 18.5% projected increase in health premiums. Director Munch confirmed the increase is driven by pharmaceutical costs and claims experience, stating it is premature to conclude the trend is unsustainable or to immediately seek risk pools based on a single year's data.
  • Parking Fund: Deputy City Manager Munch noted the commuter parking fund is projected to deplete in 2027. Councilman McGroom requested clarification on the fund's relationship with special area studies, and Director Krieger confirmed the parking fund issues are distinct from the I-88 or Fifth Avenue planning.

• Special Initiatives & Capital Requests:

  • Drone as First Responder (DFR) Program: Chief Harry presented a $150,000 request to launch a pilot program for autonomous drone deployment, distinct from the current manual piloting model. Chief Harry and Councilman Kelly expressed strong support for the program's safety benefits.
  • City Website Overhaul: Staff requested $100,000 to modernize the city website to meet DOJ accessibility standards by mid-2026.
  • Special Area Studies: Staff requested $150,000 to initiate a planning study for either the I-88 Corridor or Fifth Avenue. Director Louden noted that internal staff time and consultant costs for both projects are estimated similarly at $150,000, but only one can be pursued in 2026 due to resource constraints.

• Special Services Area (SECA) & Community Partners:

  • NCTV 17 Funding: Staff proposed a $200,000 permanent increase to NCTV 17 operating support, requiring a revision to the SECA cap from a 2% limit to an inflation-based limit (approx. $2.51 million total). The proposal aims to move NCTV 17 funding from the General Fund to the Food and Beverage fund obligation.
  • Council Positions on SECA Cap:
    • Councilman Holzer, White, Sayed, Wilson, Gibson, and Kelly expressed unqualified or strong support for increasing the SECA cap and funding NCTV 17, citing its value as a trusted local news source and community amenity.Councilman McRuham expressed opposition to raising the cap, citing concerns about the sustainability of the business model, the risk of 100% public funding dependence, and the potential loss of journalistic independence.Councilwoman Gibson expressed partial support, suggesting the cap be increased but recommending trimming grant awards to offset the cost before NCTV receives the full amount.
    • Mayor clarified that the final decision reflects a "yes" on the request to raise the cap and fund NCTV, noting that while a minority had reservations, the intent is not to reduce the funding below the proposed level.
  • Naperville Development Partnership (NDP): NDP Board President Monica Connors requested $150,000 to make I-88 corridor marketing permanent and $185,000 for restaurant marketing. Councilman Kelly inquired about the distinction between marketing and zoning plans, and Ms. Connors clarified that marketing strategies are independent of the zoning study timelines.

• Library & Settlement Budgets:

  • Naperville Public Library: Executive Director Dave Della Terza requested a 3.7% property tax levy increase. Councilman White asked for clarification on the relationship between declining tax rates and increasing actual revenue, and Staff Director confirmed that rising property value assessments allow for increased revenue despite lower rates.
  • Naper Settlement: Staff requested a 2.5% property tax levy increase and a 2% increase in the food and beverage contribution to cover rising salaries and benefits.

Key Outcomes

• No Final Vote: No final budget actions were taken as this was a workshop; the budget will return for a public hearing on December 2nd and final approval on the last December meeting.
• SECA Cap Revision Approved in Principle: The council indicated support for revising the SECA cap to accommodate the NCTV 17 funding increase and other obligations, with the understanding that the budget will proceed with the proposed numbers despite some individual council members' reservations.
• Pilot Program Authorization Pending: The $150,000 allocation for the "Drone as First Responder" pilot program was discussed and broadly supported, but requires final council approval in the subsequent budget adoption phase.
• Special Area Study Direction Not Finalized: While staff requested $150,000 to begin studying either Fifth Avenue or I-88, the council did not designate a priority for 2026 during this workshop, leaving the decision for future deliberation.
• Property Tax Levy Strategy Confirmed: Staff confirmed the strategy of lowering tax rates while capturing growth through rising property valuations to maintain revenue stability for the library and general services.