Financial Advisory Board

400 S. Eagle Street

Naperville, IL 60540City of Naperville

Meeting Minutes - Final

Financial Advisory Board

6:00 PM NEUWednesday, September 4, 2024

Special Meeting

A. CALL TO ORDER:

B. ROLL CALL:

Also Present: Raymond Munch, Finance Director; Darrell Blenniss, Director of

Water; Brian Groth, Director of Electric; Melanie Smith, Accountant; Doug Splitt,

Budget, Technology & Administration Manager - Water

Thomas Gavin, Mark Gizzo, Edward Harvey, Josh McBroom, Jignesh Patel, Michael

Soenke, and Curtis Williams

Present 7 -

Jeff WalkerAbsent 1 -

C. PUBLIC FORUM:

None

D. REPORTS:

E. NEW BUSINESS:

Approve the recommendations for electric and water utility rates for 2025 through 2027

Director Munch gave a presentation on the electric and water utility rate studies.

Munch began with an overview of the rate study process, noting that the Public

Utilities Advisory Board reviewed service levels and capital improvement plans

for each utility earlier this year. He then discussed the specific issues facing

each utility that were significant considerations in building new rates.

Director Munch noted that the Electric Utility is challenged by declining cash

balance resulting from lower energy sales in recent years, while at the same

time facing growing capital needs. Director Groth responded to several

questions from the Board that spoke to specific challenges in procurement,

supply chains, energy markets and cost escalations.

Director Munch then addressed the challenges facing the Water utilities,

specifically the need to fund significant capital projects at Springbrook Water

Reclamation Center and water main replacements. Munch noted that the

Springbrook plant requires $180 million in work over the next five to eight years.

Director Blenniss provided some additional context around the projects, cost

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September 4, 2024Financial Advisory Board Meeting Minutes - Final

and timelines.

Director Munch then reviewed the outcomes of the Electric rate study beginning

with a review of assumptions that were used. Munch noted that leaving rates as