City Council Planning Sessions

October 27, 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 Brown Councilman Clousing Councilwoman Robbins Councilman Weller Absent: None City Staff Physically Present: Michael G. Dzugan, City Manager William Kolschowsky, Assistant City Manager Robert Lehnhardt, Director of Finance Jolanta Moryl, Assistant Director of Finance Joseph Tebrugge, Director of Engineering Vince Laoang, Director of Public Works Sarang Lagvankar, Senior Project Engineer Sean Walsh, Assistant Director of Public Works Nathan Plunkett, Street Superintendent Jason Ackerlund, Forestry Superintendent Al McMillen, Water Superintendent Erik Berg, Management Analyst Halie Cardinal, Public Relations Coordinator City Staff Electronically Present: Sarang Lagvankar, Senior Project Engineer Samuel Webb, Fleet Superintendent II. Approval of Planning Session Minutes – October 13, 2025, Minutes The Council approved the October 13, 2025, Planning Session minutes. III. 2026 Budget – Fund Balances Reserves Analysis City Manager Dzugan introduced the presentation by expressing his appreciation for the Finance Department’s efforts in preparing the presentation. He provided a general overview of the City’s fund balance reserves policy and added that, in the future, a risk-based approach to each fund may be more appropriate than an arbitrary percentage.  Monday, October 27, 2025, CITY COUNCIL PLANNING SESSION MINUTES The General Fund, Water Fund, Parking Fund, Health Insurance Fund, and Liability Insurance Fund each have fund reserves above their respective policy targets. The Storm Sewer Fund, Fleet Services Fund, and Motor Fuel Tax Fund are each projected to have fund reserves below their respective policy targets. He recommended transferring excess reserves from Health Insurance Fund and Liability Insurance Fund back to the original contributing funds. This would provide the General Fund a total excess reserve of approximately $3.5 million. Of that $3.5 million, he recommended transferring $2.5 million to the Capital Projects Fund and $1 million to the Storm Sewer Fund. After these transfers are complete, each fund would meet or exceed current fund balance policies. The Council supported the proposed fund transfers. City Manager Dzugan informed the Council that these transfers would be reflected in the final 2026 budget. IV. 2026 Budget – Revenue Options Analysis Director of Finance Lehnhardt revisited the September 22, 2025, Planning Session, where staff presented the 2026 Budget Framework. At that Planning Session, City Council directed staff to explore revenue options sufficient to address the additional debt service for upcoming facility improvements. He informed the Council that the analysis focused on the General Fund, the City’s main operating fund, and included only revenue sources the City has the authority to adjust or implement. He reviewed potential increases to existing revenue sources for the City, specifically property tax, local sales tax, natural gas tax, and the wireless fire alarm monitoring fee. He compared the City’s revenue from each of these revenue sources to the City’s benchmark communities. In response to a Council question, City Manager Dzugan stated that, for sales tax, comparisons of revenue per capita between municipalities can be useful since population and municipal services are correlated. Director of Finance Lehnhardt discussed increasing the costs for permits and licenses and noted that several revenue sources are at the maximum rates allowed by statute. He then presented proposed new revenue options for the City, detailing their estimated additional revenue, impact on residents, and administrative burden. These new options include a food and beverage tax, a local motor fuel tax, and a vehicle stickers program. He noted that some municipalities have introduced an admissions and amusement tax or video streaming taxes. Councilmembers discussed the merits of the various proposed revenue options and expressed support for increasing the local sales tax, natural gas tax rate, and property tax. Additionally, councilmembers expressed support for reviewing permits and implementing a local motor fuel tax rate. City Manager Dzugan informed the Council that staff would prepare a memorandum incorporating the Council’s recommendations; he added that this memorandum would demonstrate how these revenue options would affect residents. V. 2025 Tax Levy Estimates Director of Lehnhardt reviewed the 2026 property tax levy. There are two components to the property tax levy. The general-purpose levy funds police and fire pensions, the library, and partially funds public safety expenditures. The debt service levy funds debt service related to outstanding bonds. The City is required to file a levy by the last Tuesday in December but the City can choose to abate it until March 2026. In 2024, the City saw an increase of 8.65% in equalized assessed value and  Monday, October 27, 2025, CITY COUNCIL PLANNING SESSION MINUTES the City’s portion of the overall tax levy was 11.4%. Director of Finance Lehnhardt noted that 2025 would be the seventh consecutive year with no increase in the property tax levy. He stated that Special Service Area #3 (SSA #3) was established in 1987 to provide maintenance of open spaces within the Streams Subdivision. The ordinance allows a maximum tax rate of $0.15 per $100 of assessed value and has no expiration date. The proposed 2025 property tax levy is unchanged from 2024. In response to a Council question, City Manager Dzugan stated that the City is acquiring more parcels of land surrounding Streams Lakes as part of a future project and that SSA #3 could be removed in the future. VI. 2026-2030 Capital Improvement Plan Director of Finance Lehnhardt provided a summary of the Capital Improvement Plan (CIP) for the years 2026 through 2030. Facility improvements represent the largest portion of proposed 2026 projects, particularly the Police Station remodel and the replacement of Fire Station #39. Both projects will be funded through a General Obligation bond, with an estimated $1.5 million annual debt service. He then reviewed the infrastructure improvements planned for 2026. The CIP allocates $5.9 million toward road improvements, including $2.1 million for the Road, Sewer, and Water Program and $2.5 million for street reconstruction. $4.9 million is allocated towards sanitary sewer projects, including $3.6 million for the Basin 3 and 4 Discharge. $1.9 million is planned for storm sewer projects; $2.7 million is planned for water improvement projects. For water improvement projects, $1.5 million is projected for water main replacement and $0.5 million is projected for lead service line replacement. Finally, in 2026, $2.3 million is projected to be spent on the New Sidewalk Program and for the Sidewalk Replacement Program. In response to a Council question, Director of Engineering Tebrugge stated that Gables Boulevard would undergo street reconstruction in 2026, and that Crescent Street’s reconstruction was deferred to 2026. Director of Finance Lehnhardt reviewed the budget schedule for the remainder of the year. VII. City Council/Staff Comments Councilman Clousing thanked staff for their efforts in compiling the draft 2026 budget and CIP. He then commended the girls’ tennis team at Wheaton Warrenville South High School for their fourth- place finish at state. VIII. Adjournment The meeting was adjourned at 8:23 p.m. Respectfully, Erik Berg