CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Annual Budget Workshop #3: Proposed 2024 Budget Overview
body
DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
The proposed 2024 Annual Budget will be reviewed with the Financial Advisory Board on Oct. 30, 2023.
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 August 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 other 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 proposed budget is presented to the City Council and the community through workshops. Budget workshops establish the groundwork for the formal budget adoption process. This year, the public budget process began with two foundational workshops reviewing topics relevant to proposed budget development before its October 13 publication.
Following the remaining budget workshops, the City Council will hold a public hearing and be asked to approve the annual budget in December. A public hearing and the adoption of the annual property tax levy follow the adoption of the annual budget. To comply with state statutes, the budget and tax levy must be adopted before January 1, 2024.
DISCUSSION:
The 2024 City of Naperville budget is recommended at $618.65 million, an overall increase of 2.4% from the amended 2023 budget of $604.14 million. Increased investment in capital and service level improvements by adding new personnel are the primary drivers behind the increase. The 2024 budget is supported by $598.20 million in revenues and other financing sources and leverages existing revenue streams and fiscal policies.
No new taxes, fees, or additional revenues are recommended to support the 2024 budget proposal, and the proposed property tax levy is expected to result in a lower property tax rate.
This achievement results from years of conservative financial planning, a concerted effort to reduce debt and rebuild cash reserves, and guidance from the City’s mission statement and five strategic priorities. Building upon previous successes and actions inspired this year’s budget theme of Building Blocks, which also speaks to how the City is moving forward into a new period of reinvestment and reprioritization, especially regarding its capital assets, because of this previous work. The 2024 budget reflects these concepts and provides the operational resources necessary, including additional personnel, to make this transformation possible.
The proposed 2024 Annual Operating Budget and Capital Improvement Program, which includes the full budget and summaries, can be found on the City’s Annual Budget and Audit Report webpage and through the following link:
<https://www.naperville.il.us/globalassets/media/finance-documents/budget-audit-reports/2024-preliminary-budget.pdf>
The following are attached to this agenda item:
• 2024 budget message and budget highlights (includes minor revisions)
• Revenue and expenditure summary
• Budget Workshop #2 Q&A
• Budget Workshop #3 presentation slides
FISCAL IMPACT:
N/A