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Annual Operating Budget

As preparations for the upcoming budget cycle begin for the coming year, City staff and City Council are discussing Naperville’s long-term financial strategy. The model used by the City for the last 13 years – reducing cash reserves to offset operating and capital expenditures and mitigate the impact of the recession on residents and businesses – is no longer sustainable as the City’s cash balances have reached their minimum required level.

The City Council will continue its discussion of the City's long-term financial strategy in September.

 
To guide the discussion about the City’s long-term financial strategy, three principles are being considered:

  • Principle 1 – The City will pass a structurally balanced operating budget annually.
      
  • Principle 2 – The City commits to continuous improvement in the delivery of necessary and cost-effective services.
  • Principle 3 – The City will actively seek to increase its reserves to 25 percent and reduce its debt by 25 percent in the next eight years.

 Municipal Debt Graphic

 Staff has developed four action items in support of the principles that it believes will create a sustainable financial plan that supports the city moving forward.

  • Action Item 1 – Operating Expenses – Limit increase in operating budget to no more than 3% annually and hold operating expenses in line with planned revenues.
  • Action Item 2 – Garbage Fee – Pass the total cost of garbage and recycling collection to the homeowner, which would reduce the general fund deficit by $5 million. See the graphic for a comparison of Naperville’s garbage fees to surrounding communities.Refuse and Recycling Comparison Graphic
  • Action Item 3 – Home Rule Sales Tax – Implement a home-rule sales tax that is restricted for capital projects and to pay off debt. See the graphic for Naperville’s Home Rule Sales Tax comparison to surrounding communities.Home Rule Sales Tax Graphic
  • Action Item 4 – Electric Rate Study – Conduct a three-year rate study using data from recently implemented advanced electric technology to better project the cost of purchasing the City’s power for the next three years. These costs help determine the rates customers are charged.

  Click on the documents at right for more information on the City’s financial history, long-term financial strategy and action plans as well as answers to frequently asked questions.Additional comparison charts can be found here:

 
 Property Tax Rate Comparison Graphic

 Pension Funding Percentage Graphic

 


 The Adopted Annual Operating Budget is provided below in Adobe Acrobat PDF format for your convenience. The Introduction section strives to reduce the level of difficulty for readers who are not familiar with public budgeting systems, yet provides comprehensive information for staff to utilize as financial policy and day-to-day operation guidelines. This document is intended for staff to use as a tool in managing daily operations.

Payroll Budget Report - Illinois Public Act 097-0609 (5 ILCS 120-7.3) effective Jan 1, 2012 requires that municipal employers participating in the Illinois Municipal Retirement Fund post employee compensation information. 


City Council Workshops

The Naperville City Council has three budget workshops planned during FY 2014-2015:

  • February 9: Capital Improvement Program (CIP)
  • February 23: Operating Budget
  • March 23: FY2016 Budget (Departmental & Special Funds) 

For more information, including agendas, packets and videos for meetings already passed, visit the City's eAgenda Streaming Media Archives. All workshops will be listed under "City Council Workshop."