CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Annual Budget Workshop #1: 2026 - 2030 Capital Improvement Program
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Development of the Annual Operating Budget and Capital Improvement Program (CIP) is critical in establishing the annual financial framework that supports the City’s mission to provide services that ensure a high quality of life and maintain a dynamic business environment while creating an inclusive community that values diversity. The budget development process begins in July and is guided by the policies and priorities established by the City Council.
Each City department develops its operating budget and CIP recommendations based on historical needs and emerging priorities. Those recommendations go through two rounds of review, the first with the Finance Department and the second with the City Manager’s Office. These assessments review operational changes, discuss objectives, and analyze recommendations. In consultation with the Finance Department, the City Manager makes the final recommendation to the City Council through the proposed budget published in mid-October.
The 2026 proposed budget will be presented to the City Council and the community during workshops on Sept. 29, Oct. 28, and Nov. 10. These workshops establish the groundwork for the formal budget adoption process.
Following the workshops, the City Council will hold a public hearing and be asked to approve the annual budget on Dec. 2. Adoption of the annual budget is followed by a public hearing and the adoption of the annual property tax levy on Dec. 16. To comply with state statutes, the budget and tax levy must be adopted before Jan. 1, 2026.
DISCUSSION:
The CIP reflects Naperville’s commitment to planning and maintaining assets linked to the City’s mission and long-term infrastructure investments. It provides Naperville’s long-range financial plan as a complement to the annual budget, which provides a short-term financial plan to fund operations over the course of a year.
Capital projects have become a significant portion of the annual budget, as the City continues to invest in replacing and maintaining critical assets, many of which were built during the City’s growth period from the 1980s to the 2000s. The 2026 proposed CIP is valued at $190.25 million, a 6.1% increase from the 2025 approved program.
Utility infrastructure improvements, particularly in the Water Utilities, comprise 63% of next year’s CIP. In many instances, dollars programmed for 2026 will fund the continuation of previously approved multi-year initiatives, such as Springbrook’s upgrades. Additional 2026 projects include upgrades to transportation infrastructure, technology enhancements, and public facility improvements.
The first budget workshop will preview 2026 capital projects and their funding sources.
A summary of the five-year CIP is attached along with the presentation slides.
FISCAL IMPACT:
N/A