CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Annual Budget Workshop #2: 2027 Annual Operating Budget
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DEPARTMENT: Finance Department
SUBMITTED BY: Traci Marrocco, Deputy 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 undergo 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 2027 proposed budget is being presented to the City Council and the community through a series of three workshops. The first took place on Sept. 21; the remaining two will occur on Oct. 27 and Nov. 10. Budget 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 December 1. Adoption of the annual budget is followed by a public hearing and the adoption of the annual property tax levy on December 15. To comply with state statutes, the budget and tax levy must be adopted before January 1, 2027.
DISCUSSION:
In preparing and reviewing 2027 operating budget requests, staff used a series of considerations to help guide internal discussions. These include revenue and expense trends, known asset maintenance and replacement needs, and the overall economic environment.
The second budget workshop will preview notable 2027 operational budget recommendations, including personnel requests and associated funding considerations in the Electric, Water and General Funds, along with including a follow-up to the first workshop The discussion will also include Naper Settlement, the Naperville Public Library, and ancillary City services provided by outside organizations (the Downtown Naperville Alliance, Naperville Development Partnership, and NCTV17).
The presentation slides, along with the 2027 budget message and proposed revenue and expenses summary, are attached to the agenda for review before the workshop.
The proposed 2027 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/289/Budget-Financial-Reports>
FISCAL IMPACT:
N/A