January 25, 2010
Mayor A. George Pradel
 It’s hard for me to believe that this is my 15th time delivering the annual State of the City address!
In my previous State of the City speeches, I have been the city’s biggest cheerleader – because we have had so much to celebrate! This is not a business-as-usual time for the city – and this will not be a business-as-usual speech.
As your Mayor, I always want to share news of our city with you in an open and honest manner. When I stood before you last year to deliver my address, I reported that we were in uncharted territory in Naperville, along with the rest of the world. I wish I could report that our financial situation has improved; however, we are in the midst of another budget deficit.
Ladies and gentlemen, even in Naperville, as blessed as we are, we are not immune to the current economic climate.
We are fortunate to have a City Council and staff working together for the past several months to solve a $14.1 million dollar deficit. Even with four and a half million of new revenue, we will still have a one million dollar gap to fill. I know that as we work together as a city team, we can close this gap. We aren’t waiting. We are meeting in less than six hours to discuss new revenue in a workshop. Some of the revenue sources we are considering include a motor fuel tax and a refuse tax, which by the way, is consistent with the input we received from the Chamber.
The Naperville Chamber provided a detailed recommendation regarding these new revenues, with the majority coming from a residential refuse fee. We continue to encourage our employees to come forward with more ideas in cutting costs – I know together we will find ways to make this happen. Our employees have already come forward with great ways to save money, such as reducing multiple newspaper subscriptions and changing our mailing procedures to save postage costs. And I am all ears when it comes to hearing ideas on how the city can cut costs. The Naperville Area Homeowners Confederation recently conducted an online survey asking for ideas on how to plug our budget gap. While the past few years have been difficult, we continue to focus on our future and to find new ways to deliver service to our residents.
When Doug Krieger assumed his role as city manager, one of his goals was to take a good look at the city’s organizational structure – this is something that has never been done in the 15 years I have been your Mayor. As our city shifts from a time of growth to maintenance, it is the right time to re-examine ourselves and make adjustments for the good of Naperville.
The city hired a consultant, Clerestory, to take an objective look at how we do business, what our focus is, and how we can more effectively and efficiently serve our residents and businesses. City Council has made it very clear that we must tighten our belts before we cut services or consider raising property taxes. We are in the process of implementing some of the consultant’s recommendations. Their ideas resulted in a $5.7 million dollar budget reduction to the city’s General Fund.
Unfortunately, part of their recommendation was a reduction in force in the amount of $2.9 million dollars. This action, in addition to the city’s prior decision to eliminate vacant jobs, resulted in a total loss of 49 positions. Twenty-two of these positions were filled, and the remaining 27 were vacant. This resulted in a $3.6 million budget savings. That, added to last January’s reduction of 43 positions, results in a 10 percent reduction in our city’s workforce. These cuts were made after careful consideration and deliberation by the city and were extremely difficult decisions to make.
And to set the record straight, the safety of this community is foremost in all of our minds. Having served 30 years on the Naperville police force, I know firsthand the importance of public safety. I would never compromise the safety of our officers or our residents. We have the number one police and fire departments in the nation.
My heart truly goes out to all of those individuals who were affected by the workforce reduction. I know I speak for Council and our directors when I say this was especially difficult, since this was not performance-based – but a reality of these challenging times. I want to take this opportunity to say that our city employees provide exceptional service to Naperville and continually give 110 percent effort every day. They are committed to our community and the people who live and work here. The city’s employees are the cornerstone of our organization’s success, and the loss of these positions will not go unnoticed. However, we remain committed to providing the best service that we can afford.
Residents may see slight changes in city services as a result of these reductions. For example, although our Finance Department will have reduced hours at its customer service counter starting in mid-February, customers will then be able to pay their bills by phone with their credit card 24 hours a day, seven days a week using a new automated telephone system. And as always, we still have online bill payment 24/7, with the option to receive and pay your bill electronically. Another example is the police front desk – we will be reducing the hours that uniformed officers are stationed at the front desk. But please know, if someone goes to the police station and needs help, either for an emergency or to report a crime, they will get the help they seek. At the front door of the police department there will be a security camera and telephone connecting the caller to police dispatch. Other service changes you will see include the Bridges newsletter reduced to four issues per year, reduced frequency of meter readings, closure of Community Connection and a suspension of the Ogden Avenue corridor grant program. The changes made are for the good of our residents and businesses. In the end, we will emerge a stronger, more efficient organization and continue to be one of the safest cities in the nation.
I am pleased our garbage services will be unchanged. We are blessed to have garbage pick-up where people can put out virtually everything, and the city will pick it up. I am happy to report that there have been no changes in snow removal. So you will continue to see our snow plows out clearing the streets and keeping our roadways safe.
At this time, I would like to take the opportunity to share with all of you how our budget works and where your tax dollars go. For every property tax dollar a resident pays, the city only receives approximately 12 cents. Of the city’s portion, roughly 3 cents goes to the Library and just over half of a cent goes to the Naper Settlement. The majority of your property tax dollar, approximately 75 cents, goes to your school district. The Park District receives a little less than 4 cents of the remaining property tax dollar. The city has maintained a very low property tax rate, one of the lowest rates in the area. As you can see on the screen, property taxes in 1995, when I delivered my first State of the City, were much higher than they are today. In addition to property taxes, our other major revenues for the city include: retail sales tax, state income tax and utility tax.
The city operates through two budgets. Day to day city operations, such as snow removal and garbage pick-up are covered through our General Fund. This is the city’s checking account, our short-term dollars which we use to pay our monthly bills, such as salary and benefits, vendor services and other operating expenses. Maintaining our assets, such as buildings and roads, and constructing new projects, such as a new fire station or a bridge replacement, are funded through our Capital Improvement Program, which is our long-term funding source. City Council works diligently to make wise financial decisions to benefit our residents now and into the future. We, as a governing body, have challenged ourselves to cut our day to day expenses in order to provide long-term, permanent cost savings for the city. These are difficult decisions to make; ones we cannot afford to defer through quick, one-time fixes.
Many of you are wondering why we aren’t dipping in to the city’s reserve fund to balance the budget. We believe that using this rainy day fund is a short-term solution for what may be a continuing problem. The cuts we have made to the General Fund are permanent and provide ongoing stability to our budget. We are also being careful to invest what we need in order to preserve the value of the assets we have, and we are strongly challenging any new investments. The decisions we are making today are preparing us to weather the economic storm. Should it continue, we will still be in the position to provide critical city services to you. Especially in these challenging times, we expect our government to be fiscally responsible and accountable to our taxpayers. And now, more than ever before, we must join hands together and work through these tough times.
The city is fortunate to have wonderful support from several intergovernmental partners in the community. While there are far too many organizations in town to name each one individually, rest assured these organizations and the people who work and volunteer for them are “everyday heroes.” We have more than 300 volunteers that serve on the city’s boards and commissions – thank you to all of the wonderful volunteers! Each one of you gives of your time willingly to the city. Naperville is well known for its strong volunteer spirit – without groups like the Jaycees, the Exchange Club, the five Rotary Clubs, the two Lions Clubs, the two Kiwanis and so many others that give back to the community and help those in need – the city would be in a much worse situation. Thank you, thank you to all of our wonderful service groups.
I do want to recognize the Naperville Area Chamber of Commerce at this time. The Chamber is the very first five-star rated chamber of commerce in the entire State of Illinois as rated by the U.S. Chamber of Commerce. And I am pleased to recognize John Schmitt, a 52-year resident of Naperville, as the new chamber president. He is exactly what our businesses need during this difficult time. More than 300 businesses joined the chamber in 2009. It was a busy year for this group – there were 43 ribbon cuttings to welcome the newest members of our community! I also want to thank the Chamber for the time they spend working with our staff and our elected officials on policy proposals. The Chamber does a good job highlighting the business issues and working with the facts. You are a partner to me, as we work as a community on solving some of our mutual challenges.
As your Legislative Committee knows, the number one issue facing our city is pensions. I appreciate that we are working together – business and government united – on pension reform. As a pensioner, I am extremely anxious to be involved with pension reform. I see the issue from both sides and feel that together with the Council I can have good input as we struggle with this important issue for our city budget.
The Chamber does an excellent job of serving our business community. It serves as a resource center for businesses to find out about city, state and federal stimulus programs. I hope you take advantage of some of these historic opportunities to use stimulus money to get our local economy going again – the money was made available to Naperville and we should use every penny! One example includes the city’s Greener Business Program, which provides grants and no-interest loans to Naperville businesses for energy efficient improvements. The funding jump-starts projects employing local vendors and helps our businesses lower energy costs. The Chamber’s new Green Leadership Council offers practical solutions for businesses on how to conserve energy and cut operating costs. Even small actions, like turning your computer off at night and switching off your lights, can make a huge impact.
While Naperville has been impacted by the economic downturn, thanks to the Convention and Visitors Bureau and the Downtown Naperville Alliance, we continue to attract shoppers and visitors to our city. Of course, as a community, we all help to maintain our quality of life. Naperville is a world-class city because of its low-crime rate, top schools and library system, excellent public transportation, and, of course, wonderful retail and dining options. Thanks to Christine Jeffries and the Naperville Development Partnership, we continue to attract new businesses to Naperville even in a period of stagnant growth. Some of our development success stories of 2009 include:
Delta Dental – this 80,000 square foot office building will be bringing 200 new jobs to Naperville when it opens in March of this year.
Hollywood Palms - Naperville has its first full service movie theater, including dinner and drinks, in the renovated and expanded former Nova 8 theater.
Charles Schwab - This new two-story office building is an exciting addition to the downtown, blending modern technology with Naperville’s traditional character.
The opening of the Apple Store created quite a buzz last August! Thousands of people flocked to Naperville for the grand opening – some even spending the night on the sidewalk to be the first in line!
North Central College Residential Recreation Center - This 200,000 square foot building is home to a recreation center, an indoor track and a couple hundred students. The building has been designed to achieve the silver standard for Leadership in Energy and Environmental Design. As North Central students exercise their minds and bodies, they are also contributing to a healthy, sustainable environment. And I cannot mention North Central College without praising the beautiful Wentz Concert Hall, which completed its first year of operations in 2009.
The city partnered with School District 203 on the review of construction documents for their numerous capital projects last year, which include:
The Ann Reid Early Childhood Center and
Major facility improvements at Naperville Central
Small businesses are the backbone of our economy. Small business growth will help lead us out of the recession and help grow our local economy. The city works closely with our business community, and we have taken a number of measures to encourage business growth and development in partnership with the NDP and the Chamber. Some examples include the elimination of the development impact fee and more user-friendly ordinances for developers and car dealers. We know times are tough at your businesses and that is why the city is moving forward with making adjustments to our operations.
Our work isn’t done, but we will continue to be respectful of the economic climate and work to meet our financial obligations in a way that stimulates economic growth, and encourages the creation and retention of jobs. Working hand in hand, the city and its partners continue to provide a high quality of life in Naperville. We value our relationships with both of our school districts, the park district and the public library. And we also work so closely with our state legislators and other elected officials. Together, we can overcome any challenges.
I would also like to acknowledge our large employers here in Naperville that provide jobs and contribute to our community and local economy. Thank you for your loyalty.
Edward Hospital, the city’s largest private employer, continues to be recognized as a leader in the health care industry. This year, Naperville is at the front of the fight against strokes and other brain disorders thanks to Edward’s new Neurosciences Institute. Did you know that they can insert a device as thin as your hair into an artery in your leg, thread it up past your heart and into your brain? And we are fortunate to have Dr. Jeff Miller as the medical director of the Institute. Edward has kept us all healthy for many decades. Thank you for all you do each year to make our community the best it can be!
Now on to 2009 city highlights. While the gravity of our situation cannot be underestimated, we must continue to move forward and plan for a brighter future.
Here is our team of department directors. You will notice that I have included each department director’s contact number in case you have any questions or comments for them. As you know, the Naperville City Council is the governing board of the city and our job is to set policy. The city manager executes the policies that are set forth by Council. I know all of you in this room know our City Manager Doug Krieger and Assistant City Manager Bob Marshall.
Among the city’s major disappointments in 2009 was a dragged out legal battle filed by one of our own. The city’s bittersweet victory came after much cost – both emotionally and financially. After the judge ruled in the city’s favor five times, the plaintiff finally walked away from the case.
A major victory for the city in 2009 came when the state finally passed a capital bill – the first one since 1999! – which includes $125 million for the widening of Route 59 between I 88 and Aurora Avenue. This will create a safer road and faster travel times, which will bring more customers to our businesses and provide easy advertising for merchants.
Last year, we were pleased to welcome Karen DeAngelis, our new Finance Director, to the city. We also welcomed Joe Henderson, our new Emergency Management Coordinator.
The city had a tremendous response in our March debt issuance last year – we issued $44 million in bonds at the lowest interest rates in city history – 3.94%!
We will be opening our 10th and last fire station next month! Please join us at Fire Station No. 10 on Tuesday, February 9 at 2 o’clock for the ribbon cutting! This firehouse will make the city and its residents safer. This will allow our first responders to arrive on scene within six minutes or less 90% of the time. And, there’s more good news: the building has come in under budget and will be staffed with existing personnel thanks to a re-structured Fire Department, saving the city hundreds of thousands of dollars.
More than 12,000 of our utility customers are now participating in e-Bill, which allows them the opportunity to view and pay their bill online. This is more than 20 percent of our utility customers – a tribute to how tech-savvy and earth-friendly Naperville is. In fact, this progressive and innovative spirit helped support our application for a multi-million dollar grant from the U.S. Department of Energy.
In 2009, Naperville received an $11 million dollar grant for its Smart Grid initiative. We are the only municipality in the entire State of Illinois to receive this funding. This initiative will transform the city’s electric utility by installing smart meters to allow customers more control of when and how they use power. This will result in significant cost savings, increase our utility’s reliability and lessen the impact on our environment. In addition, our $11 million dollar matching investment will generate a 300 percent rate of return for the city. We will see a minimum of $34 million dollars in city savings over the next 15 years.
Nearly 10% of our electric utility customers participate in our Renewable Energy program. This is one of the highest participation rates in the nation. I’m proud to say that I was one of the first in the city to sign up for this program. We recently purchased five Ford Escape hybrid vehicles for the city fleet. These new vehicles will reduce fuel costs for the city, saving taxpayers’ money.
Last year, the city officially received LEED certification for the Multi-Purpose Public Works Service Center. This building joins 13 other structures in the city of Naperville that are, or soon will be, LEED certified.
Our Police Department continues its tradition of excellence by serving our residents day in and day out. My hat is off to the brave men and women in uniform who remain diligent in the fight against crime making Naperville one of the safest communities in the nation. The city continues to work with Aurora and other communities on our new interoperable radio system. Once active, this new system ensures that our radios can communicate with those of other agencies in an emergency situation.
The 75th and Washington Intersection Improvement Project continues to move along on schedule. The first portion of this reconstruction project is now complete. The second half will begin in March and be finished by the end of the year.
As part of the federal stimulus package, the city developed the Home Energy Savings Program. Through this program, residents ages 55 or older who own a home in Naperville built before 1980 are eligible for a free energy evaluation and a 50 percent reimbursement of energy improvement costs, up to $1,500.
Leveraging current and emerging technology will be key in continuing to provide great service to our residents. Naperville remains at the forefront when it comes to technology. Several applications are available on the city’s Web site that allow people to ask a question of city staff, request city services, file a Freedom of Information Act request, pay their utility bill online and more. Our residents and business owners are knowledgeable about emerging trends in technology and how it can enhance their lives. We want to continually provide new technology for our community that can make requesting city services and accessing information easier and more efficient. Are you aware that anyone in the world can watch a City Council, Plan Commission or TAB meeting live or on-demand from our Web site through our e-Agenda system? Let’s take a look at a City Council meeting. To learn more about e-government services and to provide feedback and recommendations to the city, please attend our Technology Open House from 5 – 9 p.m. on February 9th at City Hall.
As we continue through 2010 and the coming years, I know we will face many more challenges. Containing costs and budgeting appropriately while maintaining high levels of service has been – and will continue to be – a top priority for the Council. We also want to plan for future generations of Naperville residents. As our city continues to “go green” and conserve natural resources, we also want to create a plan defining the city’s vision for environmental sustainability. We are well on our way toward that goal. The work done today will help our children and their children enjoy the natural wonders all around us.
This year we look forward to seeing the iMed campus come online. The iMed campus is a new professional and medical office building being built off of 75th Street. This high-tech campus is set to be one of the most prominent structures in south Naperville.
As we look forward to the future, some exciting projects will be coming before the Council for consideration.
Just last week, the Plan Commission considered a new three-story condominium building at the southwest corner of Van Buren and Webster in downtown Naperville. This project will incorporate sustainable features, such as a green roof with rooftop patios.
While we look to the future, we cannot forget the past. Remember our brave veterans who have sacrificed so much so that we live in freedom today. We are so thankful for our military men and women who fight for the very freedoms that we enjoy here in Naperville and across America. Naperville’s very own Commander Dan Shanower paid the ultimate price on September 11, 2001, when he was killed in the terrorist attack on the Pentagon. He was working hard to keep people safe and informed that terrible day, and each year we honor his memory at the beautiful memorial named for him. Our city is rich in patriotic pride. I’ll never forget the sight of 2,009 American flags filling Rotary Hill on Veteran’s Day last year! Seeing our beautiful U.S. flags waving so majestically filled my heart with patriotism and pride. It makes me so proud to be a Marine and an American. Here in Naperville, we respect our flag, protect our nation and love our military men and women.
Thank you to the Chamber for inviting me here today to give you an update on the city. I want to thank each of you, the businesses in this room for what you do every day. Your hard work is what defines Naperville. You provide jobs and health insurance. You create the wealth that our community shares. We have achieved so much because of the personal investments you have made in your businesses in our community. Thank you and may 2010 bring you increased fortune and success.
As your Mayor, I am looking forward to our workshop this afternoon to discuss revenue sources. Having served the city since 1966, I urge employees to continue to suggest ways we can save money next year. Please consider furlough days or other ways you can help reduce spending. I have the deepest respect for each and every employee. We are a service community; we depend so much on you for all you do. We need you and because of you, we all enjoy a great quality of life.
God Bless You! God Bless Naperville! God Bless America!
Ladies and gentleman, because of our current economic situation, I am going to do something that I have never done before during my State of the City speech. At this time, I invite City Manager Doug Krieger, Finance Director Karen DeAngelis and Chamber President John Schmitt to please join me at the podium. I am opening the floor up to questions from the audience. It is so important for us to communicate openly and honestly with all of you. So, please raise your hand if you have a question and Patrick Skarr will bring the cordless microphone to you.
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