Naperville eyeing bigger, $540 million budget for 2022

Naperville officials are proposing a $540 million budget for 2022, an increase of 7.6% from 2021 that includes more than $100 million for capital improvement projects.

The balanced budget features a property tax levy of nearly $54 million after debt service abatements, which represents an increase of 0.7% from the previous year. Because of the growth in equalized assessed value, though, officials say the property tax rate for residents will be lower.

According to city officials, the average homeowner will pay $851 for the city's portion of property taxes, a decrease of $19.36 from the previous year.

City Manager Doug Krieger, Deputy City Manager Marcie Schatz and Finance Director Rachel Mayer unveiled the proposed budget this week at the first of three workshops with the city council and Naperville Mayor Steve Chirico. Two more workshops will be held before the city council votes Dec. 7 on the budget.

"Those conversations help us understand the financial mindset of council and provide policy direction for the formal budget process," Krieger said.

More than $32 million of the $38 million budget increase from 2021 will go toward capital improvement projects. Included on the list of projects are construction on North Aurora Road, reconstruction of the Washington Street Bridge and the downtown streetscape project.

Additional revenue is projected through increases in water and electric fees, and through increased revenue from the sales tax, food and beverage tax and motor fuel tax. While the hotel and motel tax is expected to see a slow recovery in 2022, a 25 percent increase from 2021 is still anticipated.

"Throughout this year we have paid close attention to our primary revenue streams that support service delivery," Mayer said. "We have seen some very impressive recovery in several areas."

Across all funds, revenues are expected to exceed expenditures by $17.3 million as the city focuses on five budget priorities: infrastructure and utilities, sustainability, beautification, public safety and financial stability.

Krieger said future workshops, scheduled for Nov. 8 and 22, will delve deeper into specific budget topics and include presentations from city entities such as the Naperville Public Library and the Naper Settlement.

"Things are a little bit different now, really related to the pandemic," Krieger said. "Our budget discussions have become more of an ongoing process through the monthly reports that have been provided to city council."