Government Affairs Updates 

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Welcome to August!   

With Congress on their customary August Recess, and the Illinois General Assembly not scheduled to reconvene until the October Veto session, we can focus exclusively on two local issues in front of Naperville City Council, both with enormous impact on local businesses. 

Issue #1 

Naperville City Council is preparing for a critical vote on Monday, August 19 that will directly affect your business and our local economy. The issue: how to close an estimated $6.1 million budget shortfall after Governor Pritzker’s suspension of the 1% grocery tax, set to take effect January 1, 2026. 

After expressing a reluctance to cut city programs or services—which could mean staff reductions, including public safety positions like police and fire—the Council narrowed its options to two:  

  • Increase the Home Rule Sales Tax by 0.25% across the board (NACC Opposed) 
  • Continue the 1% grocery tax locally (NACC Neutral) 

Why Local Business Owners Need to Pay Attention: 

At the July 17, 2025 Council meeting, a proposal to enact the local grocery tax was put forward but failed on a 4–5 vote. Supporters of the grocery tax viewed it as a neutral switch—replacing one tax with another at the same rate, maintaining revenue dollar for dollar without introducing taxes to new categories. 

How Council Members Voted on July 17, 2025 

Voted for the Grocery Tax (NACC Neutral): 

  • Mayor Scott Wehrli 
  • Allison Longenbaugh 
  • Josh McBroom 
  • Nate Wilson 

Because ordinances require five affirmative votes to pass, the grocery tax proposal fell short with only four supporters.  

The second option, the Home Rule Sales Tax increase was on first reading, which meant it was not able to be considered for final action.  Even though it passed first reading with 5 yay votes, an increase to the home rule sales tax still must clear the final vote in August. 

 Supported the Home Rule Sales Tax Increase (Against NACC Position): 

  • Mary Gibson 
  • Ian Holzhauer 
  • Patrick Kelly 
  • Ashfaq Syed 
  • Benny White 

The Chamber is opposed to the Home Rule Sales Tax increase because it would: 

  • Make Naperville less competitive compared to neighboring communities (our sales tax rate is nearly 3% lower than many nearby towns). 
  • Reduce consumer spending locally as shoppers weigh their options between Naperville, surrounding towns, or online. 
  • Place additional pressure on businesses already facing trade wars, tariffs, supply chain disruptions, and rising costs. 
  • Tax not only retail sales but also restaurant meals, hurting one of our most vital sectors. 

What You Can Do 

This decision isn’t final. The final vote is scheduled for Monday, August 19. As a business owner, your voice matters. You can read more from the City of Naperville on Home Rule Sales Tax: https://www.naperville.il.us/government/city-finances/taxes-and-financial-forms/retail-sales-tax/  

  • Sign up to speak at the meeting: Registration is required online only and must be completed by 6:30 PM the day of the meeting. City Council Speaker Sign-Up 
  • Contact City Council Members directly: Share how this proposal could impact your business, employees, and customers. 
  • Stay engaged and informed: Decisions like this affect not only the bottom line for your business, but also the overall health and competitiveness of Naperville’s economy. 

Bottom Line 

Naperville’s competitive sales tax rate has long been a major advantage for attracting both shoppers and businesses. Raising the Home Rule Sales Tax puts that edge at risk. 

The Naperville Area Chamber of Commerce is working to maintain the current “No” votes and build additional support to protect Naperville’s business climate. Your voice can make the difference—sign up, speak up, and help protect the strength of our local business community. 

Issue #2 

Naperville is one of only a few dozen communities in Illinois that owns its own electric utility. This means the City doesn’t rely on a private company like ComEd. Instead, it’s part of a group of 32 municipalities that purchase power together through the Illinois Municipal Electric Agency (IMEA), a not‑for‑profit consortium. 

Because Naperville owns its utility, decisions made at the City Council level directly shape the cost, reliability, and future of the electricity delivered to homes and businesses here.  

As a business community, we have a responsibility to advocate for an electric delivery system that prioritizes availability and reliability while providing predictable and affordable costs.   

What It Means to Own a Utility 

Owning a municipal utility gives Naperville more control than communities served by private utilities: 

  • Rates and Costs: Naperville sets its own electric rates, which have historically been more predictable than private utilities. 
  • Reliability: Pooling resources with IMEA has helped shield Naperville from major market swings and kept service reliable. 
  • Flexibility: A program called Member‑Directed Resources (MDR) could allow Naperville to increase its share of renewable energy to as much as 45% by 2026–2027, if financially viable. 

The Current Situation 

  • Contract Decision: Naperville must decide whether to extend its long‑term contract with IMEA. 
  • Why Now: Illinois’ Climate and Equitable Jobs Act (CEJA) requires utilities to get more of their power from lower‑carbon sources. IMEA needs long‑term contracts (often 20 years) to invest in new solar and wind projects that can take a decade or more to build. 
  • What’s at Stake: Without a contract extension, Naperville could face uncertainty in both electricity supply and future costs. 

Points of Debate 

  • Support for Extension: City staff, the consulting firm the city council contracted with to advise on this issue, and Naperville’s Public Utilities Advisory Board recommend extending the contract to ensure long‑term stability. 
  • Concerns Raised: Some advocacy groups and students oppose extending the contract because IMEA still has partial ownership in coal plants. Those facilities are being phased out under CEJA, but critics want faster movement toward zero‑carbon energy. 

Why It Matters to Businesses 

  • Reliable, affordable, and predictable electricity is essential for business planning and growth. 
  • Higher costs or unstable supply can directly impact operating budgets. 
  • Predictability helps businesses avoid sudden spikes in overhead expenses. 
  • A long‑term plan provides certainty as Illinois transitions to cleaner energy sources. 

Bottom Line 

The council has delayed taking action and has missed the initial deadlines for extending this contract.  However, IMEA’s board has extended the deadline for Naperville to complete their due diligence and to extend their IMEA contract to August 19, 2025 (the day of the council meeting).  It is not known if the IMEA will enforce the latest deadline or continue to extend this courtesy.  

This decision won’t determine whether Naperville pursues renewable energy—that’s already happening under state law. But could determine how reliably and affordably that transition takes place. 

As business leaders, it’s important to understand the discussion and how it may affect costs, reliability, and long‑term planning for every business in our community. 

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