File #: 18-150    Version: 2
Type: Report Status: Filed
File created: 2/13/2018 In control: City Council
On agenda: 2/20/2018 Final action: 2/20/2018
Title: Receive the report on the CY2018 Budget, review options for the Property Tax Levy reduction, and provide direction on the storm sewer lining program. (Item 1 of 2)
CITY COUNCIL AGENDA ITEM

ACTION REQUESTED:
title
Receive the report on the CY2018 Budget, review options for the Property Tax Levy reduction, and provide direction on the storm sewer lining program. (Item 1 of 2)
body

DEPARTMENT: Finance Department

SUBMITTED BY: Rachel Mayer, Finance Director

BOARD/COMMISSION REVIEW:
N/A

BACKGROUND:
Budget Overview
The City of Naperville's 2018 budget was approved at $443.6 million, an overall increase of 0.5% from the $441.5 million 2017 budget. This limited growth is evidence of the City's proactive annual commitment to reviewing expenditures, generating appropriate revenues and evaluating service delivery methods that provide high quality services to our community. Each year, City staff and City Council spend a significant amount of time exploring and planning how they envision the municipality operating both now and into the future. The City's mission statement, ends policies and financial principles are all guiding influences in the budget development process.

During the 2018 budget process, Council's decisions indicated that maintaining or lowering the total amount of property tax dollars collected was a significant priority. On December 19, 2017, Council directed staff to provide $2.1 million in changes to further reduce the property tax levy to an amount less than last year's.

Approved Action Items
Below are the two actions that City Council has already taken to reduce the property tax levy. When the property tax levy was approved, the average homeowner's projected tax bill was $848 for city services. Based upon interest rate savings from the City's bond sale and the action taken on the telecommunications and hotel/motel taxes actions, the average homeowner's projected tax bill is currently $835 for city services.

Municipal Telecommunications Tax
At the February 6, 2018 City Council meeting, City Council increased the telecommunications tax from 5% to 6% effective July 1, 2018. The City will begin receiving mont...

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