CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the report on property taxes, debt reduction, and cash reserves as part of the 2019 financial priorities guidance discussions and direct staff accordingly
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
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BACKGROUND:
City Council's proactive approach to fiscal management including the ends policies, City goals, and the financial principles have put Naperville on solid financial ground. Council initiatives have led to pension stabilization, debt reduction, rebuilding of cash reserves, and property tax reductions.
At the August 21, 2018 City Council meeting, Finance presented the six-month 2018 financial update as well as updated assumptions for the 2019 budget. These projections and assumptions have provided early indicators that not all City financial goals and principles can be achieved in 2019 without some modification. Additionally, as we continue to drive towards the City's mission with new initiatives, it is necessary to provide resources to attain those goals. For staff to present a budget that reflects the priorities of the Council, there needs to be further understanding of Council's flexibility toward financial policies.
With the goal of bringing forward a 2019 budget that meets Council's priorities, staff has engaged Council in a policy discussion over the last two meetings. Specifically, the four interconnected budgetary policies and service levels, property taxes, debt issuance, and cash reserves.
At the September 4, 2018 City Council meeting, Finance presented an overview of current and anticipated City service levels. Staff continually evaluates performance levels and how they interact with the mission statement, ends policies, and City goals. The service level assessment included a review of the 2018 budget cuts and changes to overall service levels. Additionally, staff provided solutions to solve current service level co...
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