City Council Planning Sessions

September 22, 2025 I. Call to Order The regular Wheaton City Council Meeting was called to order at 7:00 p.m. by Mayor Suess. The following were: Physically Present: Mayor Suess Councilwoman Bray-Parker Councilwoman Brice Councilman Clousing Councilwoman Robbins Councilman Weller Absent: Councilman Brown City Staff Physically Present: Michael G. Dzugan, City Manager William Kolschowsky, Assistant City Manager Robert Lehnhardt, Director of Finance Vincent Laoang, Director of Public Works City Staff Electronically Present: Dawn Didier, City Attorney Princeton Youker, Chief of Police Jolanta Moryl, Assistant Director of Finance II. Approval of Planning Session Minutes – August 25, 2025, Minutes The Council approved the August 25, 2025, Planning Session minutes. III. 2026 Budget Framework City Manager Dzugan introduced the 2026 budget framework, which staff have prepared earlier than previous years given the significant projects the City expects to undertake. He stated that since expenditures are projected to exceed revenues in 2026, and since no new revenue sources are being proposed in the 2026 budget, it would be appropriate to review potential new revenue sources, with a target of $1.5 million in additional annual revenue. While the 2026 draft budget does not reduce City services, City Manager Dzugan stated that staff are reviewing these services to identify areas where they could be made more efficient. Director of Finance Lehnhardt reviewed the goals of the 2026 budget in relation to the goals outlined in the Strategic Plan and community satisfaction survey. He reviewed the end-of-year projections for the 2025 budget. General Fund revenues are projected to exceed expenditures by $1.5 million, attributed to higher than expected sales tax. While revenue from sales tax is anticipated to increase slightly from previous years, City’s use tax is projected to continue to decrease. In response to a Monday, Sep. 22, 2025, CITY COUNCIL PLANNING SESSION MINUTES Council question, Director of Finance Lehnhardt attributed the decrease in use tax revenue to 2025 legislation amending the Leveling the Playing Field Act. The draft 2026 budget marks over ten years of the City not implementing either a new revenue source or tax, and, apart from an upcoming water rate increase, there are no proposed increases to fees. The draft 2026 budget includes $8 million for capital projects, not including the police station renovation and replacement of Fire Station 39, which are to be financed through a 2026 bond issue requiring an estimated $1.5 million in annual debt service. For the seventh consecutive year, the property tax levy will remain flat, but the Library is anticipated to receive a larger portion of the property tax. There is no expected interfund transfer from the General Fund to the Capital Projects Fund, while the Local Government Distributive Fund is expected to remain steady from previous years. Director of Finance Lehnhardt presented 5-year forecasts for the General Fund. Director of Finance Lehnhardt stated that in 2026, the General Fund’s expenditures are projected to exceed revenues by approximately $430,000. Revenues are projected to decline by approximately $500,000. He stated that in 2026, the General Fund’s unrestricted fund balance will be $3.2 million above the minimum policy target of 40%. He added that the unrestricted fund balance reserve is projected to decrease below the policy target in 2028. From 2026 to 2030, revenues are projected to increase on average by 1% annually, assuming a flat property tax levy, no new revenue sources or taxes, no increases in existing fees, and historical trends. Assuming current staffing and service levels, expenditures are projected to increase on average by 3.6% annually. City Manager Dzugan added that staff’s conservative revenue projections have historically enabled the City to direct surplus revenue to capital projects rather than operating costs. Director of Finance Lehnhardt stated that staff is seeking Council direction on whether staff should expand or add programs to the 2026 budget and whether to distribute TIF #2 and TIF #3 surpluses. He further recommended amending the effective date of water rate increases to occur in June rather than January to coincide with the DuPage Water Commission’s annual increases. Council approved the allocation of TIF #2 and TIF #3 surpluses and changing the effective date for water rate increases. The Council expressed support for downtown maintenance and exploring a College Avenue streetscape project. In response to a Council question, Assistant City Manager Kolschowsky stated that staff are awaiting preliminary cost estimates for the Police Station renovation and Fire Station 39 replacement. City Manager Dzugan added that the bond issuance for these projects and its subsequent debt repayments will depend on project timing; he estimated that the police station renovation will be underway by 2026. City Manager Dzugan informed the Council that staff will provide a revenue report for the Council at the next Planning Session. IV. Public Comment There was no public comment. V. City Council/City Staff Comments Councilman Weller reflected on his attendance of the 2000 class reunion of Wheaton Warrenville South High School Monday, Sep. 22, 2025, CITY COUNCIL PLANNING SESSION MINUTES Mayor Suess expressed his appreciation for the Community Relations Commission’s efforts in hosting Saturday’s block party. VI. Adjournment The meeting was adjourned at 7:51 p.m. Respectfully submitted, Erik Berg