Naperville City Council 2026 Budget Workshop - November 10, 2025

The City Council held the third and final workshop for the 2026 budget, reviewing a $685 million proposed budget that remains balanced despite challenges such as rising healthcare costs, declining state revenues, and unexpected electricity cost increases. Staff presented high-level overviews of operating and capital funds, followed by council deliberation on specific allocations including public safety, utility projects, and programmatic changes. While a unanimous show of hands supported the overall budget proposal with the exception of unresolved items, the council deferred final decisions on the Mobile Crisis Intervention Team (MCIT) to a staff report and a vote on the elimination of the electric lawn equipment rebate.

Public Comments & Testimony

• Marilyn Schweitzer:
  • Expressed full support for funding only Tier 1 of the undergrounding of overhead lines.
  • Expressed strong concern and requested that any consideration for Tier 2 involve first surveying affected property owners regarding their preferences.
  • Expressed full support for the elimination of the sidewalk replacement cost share.
  • Expressed strong opposition to the current funding allocations for the food and beverage tax, specifically criticizing the CICA grant program, CECA city obligations, and Neighbor Settlement for lacking adequate oversight and public input.
  • Requested that the CAP per cap calculation per municipal code be maintained as indicated in the alternative.
  • Expressed criticism regarding NCTV's fundraising capabilities, noting it cannot raise $4 per household and requesting proportional adjustments to other CECA grants and obligations if NCTV is funded.
  • Expressed concern regarding the use of a data center project in an area designated as medium-density residential in the 2022 comprehensive plan, arguing it creates community and business mistrust and uncertainty.
  • Advocated for comparing Fifth Avenue to the I-88 corridor, stating Fifth Avenue has better identity and public input, while expressing doubt regarding the city's capability to transform the I-88 corridor if Fifth Avenue fails.
  • Requested the use of the 2022 land use plan for I-88 planning and the creation of an I-88 project area on the website for public review.
  • Expressed deep concern regarding the doubling of costs on Riverwalk 2031 projects since initial estimates and directed staff to re-estimate future projects using current construction costs.
  • Expressed extreme disappointment regarding the city website revision plan, arguing it fails to address help center deficiencies and serves development rather than the entire community.

Discussion Items

• Capital and Utility Budgets:
  • Staff presented the 2026 Capital Improvement Program (CIP) totaling $190 million, a 6% increase driven by utility improvements (63% of total).
  • Clarified that the Tollway Substation upgrades are for reliability of existing infrastructure, not specifically for future data center development.
  • Reported that the Electric Utility Fund budget assumes no changes to the IMEA contract and accounts for a recent cancellation of a $715,000 federal DOE grant pending appeal.
  • Discussed the Water and Wastewater Fund, noting a 22.7% revenue increase driven by rate studies and a $45 million bond issuance for Springbrook.
• Property Tax and Revenue:
  • The estimated 2025 property tax rate is projected at 0.5506, the lowest since the late 1960s, due to significant growth in Equalized Assessed Value (EAV) of over 10.8 billion dollars.
  • Noted that while the tax rate declines, the total levy increases by 1.5% to $59.7 million, with the majority of funds directed toward city services and away from debt obligations.
  • Acknowledged the impact of declining motor fuel tax revenue due to reduced gas consumption and increased EV adoption, confirming the city is lobbying the state for a 'fair share' fix.
• CECA and NCTV Funding:
  • Staff presented two options for the CECA (Cultural, Intellectual, and Community Arts) cap calculation: the current proposed revision (catching up to inflation) and an alternative option maintaining the code calculation (2% or inflation, whichever is less) plus an additional $200,000 for NCTV 17.
• Mobile Crisis Intervention Team (MCIT):
  • Police Chief Aris presented the case for a full-time MCIT unit consisting of officers, a sergeant, and a crisis intervention canine, estimated to cost $900,000 for the first year.
  • Councilman McGroom argued that the program is an "essential" service and a "wait and see" approach is inappropriate for mental health and child abuse response.
  • Councilman Holzhauer expressed concern that adding the program would be fiscally unsound given the tight budget and potential for future deficits, characterizing it as a "bells and whistles" item in the context of current constraints.
  • Councilman Kelly expressed support for the program but requested more financial detail, specifically the exact impact on the property tax levy and rate before a final vote.
  • Director Munch confirmed the program was deferred previously due to contract negotiations and a $4 million deficit, noting that a $900,000 addition would increase the deficit significantly.
• Special Fund Allocations:
  • Electric Lawn Equipment Rebate: Councilman Wilson moved to eliminate the $10,000/year program from the general fund, arguing it acts as an unwanted subsidy where one household funds another and that it should move to the Renewable Energy Program if allowed by parameters.
  • Tree Trimming: Councilman Wilson raised the issue of the general fund balance ($70 million) to potentially fund accelerated tree trimming; Deputy Director Schwarzkopf noted the city is already behind schedule and utilizing $500,000 in contracts, but a discussion on using the general balance for operating expenses was deemed possible but需谨慎.

Key Outcomes

• Straw Poll on CECA/Alternative Option: Three council members supported the alternative option (keeping current code + $200k for NCTV); six council members supported the proposed revision (catching up to inflation).
• Straw Poll on Electric Lawn Equipment Rebate: Three council members voted in favor of Councilman Wilson's motion to eliminate the $10,000 general fund allocation for the electric lawn equipment program.
• MCIT Motion: The council voted to request a staff report to be presented at the November 18, 2025 council meeting detailing the MCIT proposal, its specific costs (for 4, 6, or a ramped-up model), and its projected impact on the tax levy and rate, to inform a potential future vote.
• Final Budget Proposal: A unanimous show of hands was recorded supporting the proposed 2026 budget of $685 million, subject to the upcoming decisions on the MCIT program and the formal adoptions scheduled for December.
• Next Steps:
  • Staff will prepare the MCIT report for the November 18th meeting.
  • The Council will receive the estimated property tax levy and schedule the public budget hearing for December.
  • Formal adoption of the budget and approval of the property tax levy will occur at two separate meetings in December.
  • The electric lawn equipment program status may be revisited during the December sustainability discussion regarding the Renewable Energy Program parameters.