The city’s budget has hit a plateau. That was the message Naperville City Manager, Doug Krieger delivered at the latest Chamber of Commerce Luncheon.
A legislative committee meeting was held during the lunch to update residents and business leaders on the city’s budget process and explain where the city’s money comes from.
“The answer is a whole bunch of places, what’s the single largest piece- retail sales tax. No question, hands down, it represents the largest piece,” said Doug Krieger, Naperville City Manager.
Krieger and the city are pleased with this source of revenue because the money comes more from visitors to the city, rather than residents.
Despite the growth in the primary revenue streams,
The city still faces a potential $12.7 million budget gap, part of which could be abated by a proposed seven percent increase in the city’s portion of property taxes.
“Obviously the housing market took a big hit during the recession,” said Krieger. “We have recovered significantly from that, however, talking about going from a growth community to a steady state community, I don’t believe we will ever see kind of the levels and transactions we saw during the 80’s 90’s and early 2000’s,” said Krieger.
If approved, the move to levy $48 million and increase property taxes would reverse a four-year trend of the city lowering its levy.
Ending the meeting on a high note, Krieger mentioned the largest year-over-year growth in revenue related to services. This directly relates to the federal government’s increase in Medicare rates and reimbursements.
The next chamber luncheon will take place on November 24.
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