‘More challenging’: Naperville budget plan includes fewer new programs
Naperville’s proposed 2026 budget calls for no new positions and “only limited” new initiatives, officials say.
During preparations for the upcoming fiscal year, city departments were told to hold the line on operating budgets because of budgetary pressure from increased personnel and health insurance costs. Officials expect to see an 18.5% spike in health insurance premiums.
“To be clear, this was a more challenging budget year than we’ve seen in recent memory,” Finance Director Ray Munch said during the second of three city council budget workshops.
Among the few new budget requests? An estimated $150,000 that would allow Naperville police to pilot a “Drone as a First Responder” program.
Here’s a look at that and other areas of the spending plan:
Budget overview
Most of the city’s services and capital projects are funded through sales and income taxes, “which are more susceptible to economic fluctuations,” Munch and City Manager Doug Krieger wrote in their 2026 budget message.
“While this doesn’t necessarily pose an immediate concern during a period of economic stability, a greater share of revenue coming from those economically sensitive sources becomes more problematic if or when the economy contracts,” Munch cautioned.
For next year, officials forecast that state sales and use taxes will fund more than 35% of the general fund, Munch said. “Notably, less than 20% is funded through property tax, which includes contributions to pension funds and funding for core services,” he added.
The general fund budget totals $173.83 million, representing an increase of $7.41 million, or 4.5%, over the 2025 budget. The city’s largest expense is personnel.
“As a result, the 4.5% increase is driven primarily by an $8.4 million increase in employee compensation,” Deputy Finance Director Traci Marrocco said.
The budget plan reflects the second year of higher-than-normal wage increases for two of the city’s largest union groups, she said. According to their contracts, sworn police will receive an 8% increase, and fire union members are in line for a 7% increase.
“Heading into 2027, wage increases for police and fire personnel will normalize to 3%,” Marrocco said.
Health insurance premiums are projected to rise significantly across public and private markets next year, and the city is no exception, she said.
“Rising health care costs, higher prescription drug prices and usage, general inflation, and federal policies have all led to increased rates in both public and private health insurance markets,” Krieger and Munch explained.
How new drone would work
Police currently fly drones on a case-by-case basis. Officials credit drones for helping police locate fleeing suspects, clear homes and businesses, find missing people, document traffic crashes and crime scenes, and support large special events.
Police now want to launch a “Drone as a First Responder” program. Such a system has taken off in the village of Gurnee.
Naperville Police Chief Jason Arres said the drone technology is evolving at “an incredible pace.”
Currently, one isn’t going to cover the whole city. So the pilot program would first focus on the north side of the city, which has the highest call volume and also includes Naperville’s downtown.
“When a 911 call comes in, a drone can launch within seconds,” Deputy City Manger Pam Gallahue said. “Under the supervision of a licensed pilot, it autonomously flies to the call location, often arriving in under two minutes. That gives the pilot a live view of what’s happening before officers, firefighters and other responders even arrive.”
Live video, she said, would allow dispatchers and officers to “scale their response appropriately.”
Mayor Scott Wehrli said he got a demo in Oak Brook with the DuPage Mayors and Managers Conference.
“It’s launched from the roof of their police department and goes to an active call in progress. Is that how you envision this?” he asked Naperville’s chief.
Exactly, Arres replied.
The next budget workshop is scheduled for Nov. 10.