Do you know who you’re voting for? More importantly, do you know why you’re voting for that person? Will they represent your business and your goals for Naperville?
 
We know these are important questions in the coming weeks so we recently hosted a forum with every candidate for Naperville Mayor and Naperville City Council. However, we threw out the old rulebook and broke down what we wanted to accomplish.
 
We wanted to create an environment where real conversations could flourish, where business owners and Members could look candidates in the eye and hear answers to their most pressing questions. We know there is a tremendous amount of value in a more formal setting, but there are great groups in town that are producing those events and producing them very well.
 
So, our newly formed Business Works group created a speed networking event, where each candidate had five minutes at each table before they had to jump to the next group. It’s amazing what you can do in five minutes when you focus your message!
 
We’re very thankful for the candidates who took time out of their day to join us and talk with Members about the issues that matter most. We’re also thankful to all the participants who asked thoughtful questions and took the time to listen to the candidates. We received a lot of great feedback from both candidates and participants that really enjoyed the event.
 
If you weren’t able to attend, we have a great announcement for you! Naperville Community Television, NCTV17, was present on the day and recorded a session with each candidate. Meet the Candidates will give you the inside information on who’s running and what they stand for. We hope you’ll take the time to learn more about your neighbors seeking public office.
 
https://www.nctv17.com/decision-2019-meet-the-candidates/ 
 
 
Around Naperville
Downtown Streetscape Improvements
Naperville City Council approved a plan that could create a special service area to update some downtown streets. Some sidewalks could be widened, old water infrastructure improved, and a much needed refresh could be coming to much of Downtown Naperville.
 
Springfield
Graduated Income Tax
Implementing a graduated income tax was a key part of the Governor Pritzker’s campaign and the issue has heated up in Springfield. There still are not specifics on rates or increases. Meanwhile some lawmakers have signed on to a resolution which asks lawmakers to reduce the tax burden on businesses and residents.

Illinois Governor JB promised a new day in Springfield during his inauguration speech on Jan 14. While recognizing that there are serious challenges ahead, he proclaimed that everything is not “broken”.
 
It won’t be easy, but let’s confront this challenge with honesty. Our obligations as a state outmatch our resources. Our fiscal situation right now is challenging. And the solution requires a collective commitment to embracing hard choices.
 
I sincerely hope that the sentiment expressed in that speech holds true. Our fiscal situation is staggeringly bad but will only deteriorate if we continue to view the challenge as myopic partisans. We also know that business growth will only help alleviate the budgetary challenges and that we have some catch up to do with our neighbors who have been outpacing us in recent years.
 
However, as I have become fond of repeating in recent weeks, “the details matter.” And the details of the Governor’s budget include a lot of grand promises. In his budget address on February 20, he proposed to extend the pension ramp, legalize and tax marijuana, expand gambling, as well as institute a new tax health insurance tax on managed care organizations among many others.
 
Any one of these proposals is a major change for Illinois and should be considered fully before enacted. There is a tremendous sense of urgency but also a necessity to get the details right. I hope the Governor’s words remain true in practice.
 
Undoubtedly all of you will bring your own priorities, ideas, and concerns to the budget process. I welcome that conversation – that’s as it should be. We are all here, Democrats and Republicans, with the common desire to serve the people of our state well. And we do that better when we talk to each other, and more importantly, listen to each other.
 
Around Naperville
Hemp Ordinance
Naperville City Council passed an ordinance change on February 19 that aligned the Naperville City Code with recent changes to state law on hemp. The change specifically excludes hemp and hemp derived products from the definition of cannabis so long as they have a de minimus amount of THC. The NACC was in support of this change as it helps clear up the law regarding CBD and other non-hallucinogenic hemp products for retailers.
 
 
Springfield
$15 Minimum Wage by 2025
The Governor signed SB1 into law on Feb. 19. The law raises the minimum wage to $9.25 per hour on Jan. 1, 2020. It continues to raise the wage with yearly increases to $15 per hour by 2025. Employees who are under 18 top out at $13 per hour and a tax incentive is included for smaller businesses. Finally, the 60/40 tax split is maintained for tipped workers.

The City is finalizing the budget process, and we are coming down to the most important questions. To put it simply, should the cost of the City Budget be set at $451,398,341? If yes, how exactly should the City of Naperville pay for that level of spending? There’s a lot to get to, so let’s dive right in.
 
Should Costs be Set at $451,398,341 for 2019?
 
There have been hours of hearings evaluating the proposed budget, and you can view all the city budget workshops on their site, here. These proposed costs will go to City Council on Dec. 4 for approval. You can view the full proposal here.
 
There’s too much to go through, so big picture, the budget represents an approximate 2% increase over last year. City Staff’s recommendation includes proposals to maintain the three financial principles: to pass a structurally balanced budget, to continuously improve the delivery of necessary and cost-effective services and increase cash reserves by 25% and reduce debt by 25% by the end of 2022.
 
The City continues to work towards efficiencies including potential staff reduction requested in the last budget process between the Settlement, the Library, and City Hall. We continue to support these efforts and hope that sharing HR and other resources will allow the City to maintain service levels while reducing the cost to the residential and corporate taxpayers.
 
In addition, there was significant discussion around a proposal for Ogden Sign Conversion and how many dollars should be allocated for that in the budget. The City seeks to convert existing and non-conforming pole signs along the Ogden corridor to monument signs. The NACC has had extensive feedback from our Membership on this issue. In so far as the program is voluntary, then many of our Members are interested in exploring the possibility with the City.
 
How Should Naperville Pay for the $451.4 Million in Proposed Spending?
 
If City Council votes to approve the spending figure outlined above, the question turns to exactly how to pay for it. There was extensive conversation at the budget workshop around two primary options: allowing the real estate tax levy to increase with the rise in property values or to raise the food and beverage tax. These are not official proposals, and final decision is not due on Dec. 4, but both have major policy implications so it’s worth going into depth on what they could mean for local businesses.
 
Real Estate Tax Levy
 
City Staff’s recommendation is to allow the property tax levy, or the total dollars collected, to rise while holding the property tax rate constant. The City of Naperville would then capture the rise in value of each individual property as well as the value of new construction as revenue to balance the budget.
 
Proponents point to the fact that the City has a historically low rate because of the current policy to drive down the total levy. For example, since 2016 the rate has dropped by 7.8% which has saved Naperville residents and commercial property owners significantly. The proposed increase from City Staff would cost the average Naperville homeowner approximately $35.
 
In addition, City Staff points to the need to diversify revenue streams while pointing to the fact that nearly 49% of the City’s revenue mix currently comes from market-driven sources like the food and beverage tax, sales tax, and real estate transfer tax. This makes the City of Naperville reliant on a strong economy to continue to deliver operating revenue which would be at risk come a slower economy.
 
Opponents point to the fact that the total property tax burden in Illinois is still among the highest in the country and is a driver for out-migration.
 
Food and Beverage Tax
 
Another option discussed at length is a potential increase to the Naperville Food and Beverage Tax. This would increase the tax rate on alcoholic and non-alcoholic drinks as well as food purchased at Naperville bars and restaurants.
 
Proponents argue that this is a voluntary tax paid by the consumer. If you don’t want to pay the tax you can buy less expensive items or less in total. In addition, food and beverage taxes affect consumers at the location, many of whom may not be Naperville residents.
 
Opponents argue that unlike the City’s portion of the Real Estate Tax, the Food and Beverage Tax rate in Naperville is less competitive. There have been no recent efforts to drive down the rate and further increases will have a distortionary effect on demand. Moreover, Naperville is already heavily reliant on discretionary, market-driven tax dollars and this proposal could increase that exposure.
 
What Are Your Thoughts?
 
I want to reiterate that these are not final proposals, vetted and ready to be voted on before City Council on Tuesday. Nevertheless, each potential has significant implications to local businesses and deserves to be poked and prodded. A decision on the Property Tax levy is due near the end of the year, while the food and beverage decision would be due in the first quarter of 2019.
 
But what do you think? We’d love to hear your feedback.
 
Around Naperville
5th Avenue Development
The City Council is diving deep into the necessary questions raised with the potential 5th Avenue development around parking, DuPage Children’s Museum location, and more. The next action will be Dec. 4, when City Council will receive the report from S.B. Friedman, the City’s Advocate, on their recommendations to date.
 
Internet Commerce Fairness
In a big win for fairness, Naperville leveled the playing field for local hotel/motel and internet sharing sites. In addition, the City is exploring legal options to demand Amazon and other online retailers collect and remit the home rule sales tax to place them on a level playing field with local retailers.
 
Springfield
The Illinois General Assembly is finalizing the 2018 veto session. Spring Session Adjourned on May 31, 2018.
 
Workers’ Compensation Insurance
The House voted to override the Governor’s Veto on SB904, a workers’ compensation reform bill. The bill proposes significant changes especially to electronic billing of claims.
 
Tobacco Purchase Age
The House failed on an attempted override of the Governor’s veto on SB2332. This bill would have raised the minimum purchase age for tobacco products to 21 statewide.

With the election over for most races, local elected officials are turning back to governing. We’d all do well to shift away from whether our “team” won or lost and turn our attention to solving the challenges that face our state.
 
Let’s be honest, neither team has all the right answers, and no one has magic, silver bullets. And as much as I loved seeing all my friends posting “I Voted!” selfies, the work doesn’t stop there. We need folks to stay engaged in the process and communicate with the newly elected officials what policies will help their business and their life.
 
At a press conference Wednesday, Governor Elect JB Pritzker said he will focus first on the budget. He also stated he will not consider a temporary flat tax increase with exemptions to institute an effective progressive income tax.
 
Instead, he is will evaluate new revenues from recreational marijuana legalization and gaming expansion. He went on to say, “We’re going to look at everything because balancing the budget is critically important if we’re going to address the real challenges that we’ve got.” This includes, “the ideas of Republicans,” because “we need to make sure that all the ideas are incorporated here.”
 
I congratulate the Governor Elect on focusing on the issues that address our State and for adopting a bi-partisan stance. I encourage him to continue to back up those words with real action and we stand ready to work with his office and any office toward pro-growth policies that benefit the Naperville Area and the State of Illinois.
 
Let’s get to work.
 
Around Naperville
Naperville Brewery Licenses
Naperville City Council voted 8-1 in favor of an ordinance that would grant more events, offsite production flexibility, and the elimination of the three-drink cap for production breweries in Naperville. Currently, Solemn Oath and Two Fools Cidery hold such licenses.
 
Naperville City Budget
The City of Naperville will host their next 2019 Budget Workshop on November 11, 2018 at 6pm in Council Chambers. The Agenda is available online for review. The City of Naperville will also present on the 2019 Budget process at the next NACC Legislative Forum to be held on Nov. 28, 2019.
 
Springfield
The Illinois General Assembly is not currently in session. Spring Session Adjourned on May 31, 2018.
 

DuPage County voters will be presented with three referenda questions when they vote in the 2018 General Election. In an effort to help voters stay informed and support policies that help our businesses grow, the Legislative Forum and Board of Directors thoroughly reviewed the questions and encourages Members to VOTE YES on the following:
 

• “Shall DuPage County oppose the General Assembly instituting a property tax increase equivalent to 1% of your home’s value to help retire state debt?”
  

 

• “Shall DuPage County continue to dissolve and consolidate units of local government to reduce costs, increase efficiencies, and increase accountability?”
  

 
Recognizing that Illinois has the highest combined state and local tax burden, near the worst combined economic growth rate, and the third worst funded public pension system in the country, the NACC opposes perpetual tax increases as counterproductive policies to growth and prosperity.
 
Illinois needs sustained, robust growth to rebuild the confidence of investors and businesses alike. Key to that change should be policies that decrease our debt and increase our tax competitiveness to attract businesses and expand our tax base.
 
For these reasons, the NACC SUPPORTS the idea that DuPage County should oppose a property tax increase as the silver bullet for the crushing public pension debt. Illinois families and commercial landowners will not sit idly by with a more robust long-term outlook in surrounding states.
 
The long-term strategy of reducing government overhead, championed by DuPage County in the ACT Initiative, is a necessary way forward to competitiveness. DuPage County will save private and corporate taxpayers a projected $100 million in total cost. Rightsizing the government decreases the need for tax increases and provides greater opportunity for prosperity in DuPage County.
 
For these reasons, Members are encouraged to Vote YES!
 
Around the Country
In the strongest terms, the attempted bomb attacks in New York, Washington, and elsewhere should be condemned. There is no place for terrorist attacks in our political discourse.
 
Around Naperville
5th Avenue Development
City staff will begin to work with an independent, third party advisor, SB Friedman, to gather information and provide direction to City Council in preparation for the December 4, 2018 City Council Meeting where the Council may decide to move from Phase I to Phase II.
 
Springfield
The Illinois General Assembly is not currently in session. Spring Session Adjourned on May 31, 2018.