Underground electric utilities and sidewalk replacements were among the capital improvement projects (CIP) discussed at length at a recent meeting as Naperville’s proposed 2026 municipal budget goes under the microscope.
The Naperville City Council held the first of up to three budget workshops on Monday, Sept. 29. The first review entailed a comb through of the various components of the CIP spending plan, which in 2026 totals $190 million and is a 6% increase from Naperville’s 2025 CIP budget.
‘Money with a mission’ and ‘Every dollar has a job’
Annually, city staffers come up with a theme to underscore some of the priorities that drive budget proposals and spending priorities. The phrases “money with a mission” and “every dollar has a job” were mentioned on multiple occasions at the recent workshop.
“Those dollars fund the work behind our mission statement that says we will provide the services that ensure a high quality of life, sound fiscal management, and a dynamic business environment, while creating an inclusive community that values diversity,” City Manager Doug Krieger said.
Throughout the recent presentation, Krieger and other city staffers indicated that thought and deliberation went into each of the specific CIP recommendations brought forward for the city council’s review.
“We want every dollar to have a job, which means that every dollar is allocated to projects or services that are achievable with available resources and will be spent,” Krieger said.
The end of the cost-share sidewalk replacement program
Throughout the recent workshop, the city council, by a show of hands, did make a few policy decisions that will help steer further planning as the 2026 budget building process moves forward.
One of the directives was the end of the cost-share arrangement attached to the city’s sidewalk replacement program, where the city pays 60% of the tab, and residential property owners foot the bill for the remaining 40%.
The city council in April voted to pause the cost-share program for one year. Because of the council’s directive this spring, Finance Director Raymond Munch said the 2026 CIP budget was assembled with the assumption it would not resume in 2026.
After a deeper analysis, Munch said he was recommending the program come to an end. Administering the program, he said, has traditionally encompassed about 375 total hours of staff time across multiple municipal departments, which alone costs $15,100 in personnel.
Historically, there have been other incidental costs associated with the program as well, including an estimated $4,700 toward mailing estimates and invoices to impacted property owners, as well as the administrative aspects of addressing unpaid invoices.
“The cost share program may be at a point where it’s outdated, ineffective or, simply, an administrative burden,” Munch said.
On the other side of the ledger, Munch said he believes there are other levers to pull from to ensure sidewalks remain properly maintained without the task of billing property owners.
“Most notably is the home rule sales tax, which is a recurring capital revenue tax that did not exist when the sidewalk cost-share program was developed,” Munch said.
Underground electric utility conversion also deliberated
The city council gave another policy directive at the recent workshop concerning the extent of underground conversions of electric utility power lines.
Munch presented the council with two separate scenarios for the conversion: tier one, which carries an estimated $18 million price tag over a five-year span, and tier two, which is nearly double the amount, at a cost of $35 million.
In addition to aesthetics, the proposal has been touted as a means of improving service and reducing the likelihood of power outages, which have cropped up in several areas of the city.
Tier one encompasses installing underground lines along major roadways and feeding major electrical equipment. Tier two is more complex in scope and includes residential backyards as well.
For the foreseeable future, the city council directed city staff to stick with the lower-cost first phase, leaving the second phase as a possibility down the road.
When asked about the impact installing underground power lines would have on residents’ backyards, Brian Groth, director of the city’s electric utility, did not mince words.
“I’ll be pretty blunt: backyards will be destroyed,” Groth said, noting the work would be disruptive and take place over a prolonged period of time in residential areas.
Councilman Patrick Kelly was one of several elected officials who weighed in on the considerations at play for the two tiers. Kelly said he has fielded a range of comments within his own neighborhood about the proposed work.
“I’ve talked to a lot of neighbors — dozens of neighbors — over the last couple of years, where we’ve been talking about this project,” Kelly said.
He added, “There is a pretty serious divide, almost half and half, to be honest. Half that are very excited about it and hate the outages … and half who say, ‘If you want to cut through my yard, over my dead body; it’s never going to happen.’ There is not a unanimous opinion, one way or the other.”
The city council’s next budget workshop is scheduled for 6 p.m. Tuesday, Oct. 28, where general operations will be discussed. A third budget workshop, if needed, is scheduled for 6 p.m. Monday, November 10. The 2026 budget and corresponding 2025 tax levy will be voted on in December.
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