$183 million – that’s the preliminary budget estimate for Naperville’s capital improvement program (CIP) in 2025, a 26% increase from 2024.
During the first 2025 budget meeting on Tuesday, city staff detailed Naperville’s population has nearly doubled since 1990. With that growth comes the need to update existing city infrastructure and bring new utilities to Naperville.
Aging water infrastructure requires improvements
The city’s ongoing revitalization of Springbrook Water Reclamation Center and the installation of new water mains are its two key priorities heading into 2025.
The Springbrook project started in 2021 and will run through 2030. The “forced” upgrade came from increased demand, aging infrastructure, and regulatory changes.
The project is financially hampering the city’s efforts to replace water mains around Naperville in a timely fashion. The proposed 2025 CIP includes $19 million for new water mains, but utility staff say the replacement rate needs to increase.
Naperville officials say the city currently replaces three miles of water main per year on average. However, a consultant recently recommended that the city replace six and a half miles per year, which is “still well below” the consultant’s original recommendation of 10 miles per year in 2020.
“Implementing a more aggressive replacement schedule in the coming years will help prevent that backlog from growing even larger,” said Munch.
In the 2030s, 125 miles of Naperville water mains will reach “end of useful life.”
The increased CIP budget for 2025 will bring rate hikes for electric and water customers in Naperville. More than half of the city’s CIP spending plan includes work in these two departments.
City staff are proposing a water and wastewater rate hike of $9 to $13 for the average customer and an electric rate hike of $8 per month, based on a recommendation from a professional rate consultant.
Council questions moving power lines underground
The city’s Director of Finance Raymond Munch said 94% of electric utility distribution lines in Naperville are underground. A proposed 10-year investment that aims to get 98% of city lines below ground will cost approximately $55 million.
The 2025 proposed CIP includes $150,000 for initial design work, with construction commencing in 2026. The city would start with “primary electric lines” along roadways, and eventually address lines in residential areas.
The $55 million price tag raised concerns from several council members, including Councilman Ian Holzhauer.
“I grew up in and live in a neighborhood with overhead wires,” Holzhauer said. “And I know they’re certainly unsightly, but ($55 million) is quite a price tag.”
Councilman Patrick Kelly said moving more power lines underground would be a “positive quality of life change” for Naperville residents, and said, “If the data proves that we can significantly decrease the number of outages, I certainly think it’s worth looking at.”
Other proposed electric utility improvements for 2025 include continued tollway substation upgrades ($8.3 million), along with $4 million in cable replacements in Springhill, Old Farm, Hobson West, and Olesen Estates.
Work on the North Aurora Road underpass expected to start in 2025
A project over 20 years in the making will go out for bid in early 2025.
Construction on the North Aurora Road underpass, the connection between Naperville and Aurora, is expected to start next year.
Deputy City Manager Pam Gallahue said “significant planning and design work” has gone into the proposed underpass. The city plans to expand the roadway from two to four lanes and improve the surrounding railroad and utilities.
City officials estimate the project will cost $45 million. However, Naperville will only be responsible for $2 million of construction costs after receiving federal and state funding for the underpass.
Additional planned transportation projects in 2025 include capacity improvements for the development of Route 59 and 103rd Street ($1.3 million), and on 248th Avenue ($1.8 million).
Proposed $15 million in non-utility debt for long-term projects
City officials have proposed taking on $15 million in non-utility debt to fund three projects: the public safety radio project ($10 million), the Eagle Street gateway ($2.3 million), and police department renovations ($2.7 million).
“The cost of some capital projects is simply beyond what can be funded through recurring revenue streams,” said Munch.
Back in 2015, the Naperville City Council set out to reduce debt by 25% from 2015 to 2022. The city has surpassed that goal, reaching a 53% reduction in all governmental debt supported by the property tax levy.
According to Munch, this has allowed the city to handle more debt.
“When you’re financing assets with very long lifespans, it ensures that future users will pay their fair share,” Munch said. “Some of the assets that we replace may not be replaced over the course of an entire generation. So excited that cost out, over many years, creates equity.”
Next steps for 2025 budget
The City of Naperville will hold two additional 2025 budget workshops.
The next meeting will come on Oct. 22, focused on the city’s operating budget. The final workshop on Nov. 12, and cover the full budget overview.
The city council is expected to pass the 2025 budget and property tax levy in December.
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