Council Advances Community Projects, Debt Policy

Sep 8
3 min read

Introduction

On October 10, 2022, the St. Charles Government Operations Committee convened to review city finances, approve community event permits, and discuss policy matters including debt management, Tiff district termination, and municipal tax deferral. The meeting highlighted the city’s financial strength while addressing long-term planning and community priorities.

Community Event Approvals

The committee approved several permits and street/parking lot closures for upcoming public events:

Third Street Dance and Theater Academy Performance: Amplification and parking lot closure approved.
Memorial United Methodist Church Trunk or Treat: Street and parking lot closure approved for October 23rd.
Lighting of Lights on First Street Plaza: Partial street closure and amplification approved for the St. Charles Business Alliance event.
Electric Christmas Parade: Amplification permit and street closures on Routes 64 and 31 approved, with enhanced security measures.

These approvals ensure safe and organized community celebrations through the holiday season.

Fiscal Year 2022 Financial Reports

A major portion of the meeting focused on the FY22 Financial Audit:

Auditor Presentation: Jim Savio from Sigich presented an unmodified opinion, the highest assurance level.
Financial Highlights: Sales tax revenue increased by 20%, approximately $3.9 million, resulting in a strong general fund balance.
Capital Projects: The city transferred $3.4 million to capital projects without issuing new bonds.
Pension Contributions: Minor increases noted for police and fire pensions, while Tiff fund deficits are being addressed.

The strong audit results underscore St. Charles’ fiscal stability and prudent financial management.

Debt Issuance and Management Policy

The committee reviewed a proposed new Debt Issuance and Management Policy to formalize practices and introduce clear metrics:

Outstanding Debt: Approximately $154 million, higher than average due to historical infrastructure and capital investments.
Policy Metrics:
- 10% debt service ratio for general fund.
- 1.0 debt service coverage ratio for enterprise funds.
Tiff Considerations: Committee requested revisions to exception language for Tiff financing before full Council approval.

The policy is forward-looking, aiming to ensure the city maintains responsible debt practices while supporting development projects.

Termination of Lexington Club Tiff District

The committee approved an ordinance terminating the Lexington Club Tiff District, which had not seen redevelopment within seven years as required by state law. Staff will monitor the property and assess potential cleanup or redevelopment opportunities.

Outdoor Cafes and Accessibility Improvements

Additional approvals included:

First Street Plaza Winter Permits: Temporary outdoor cafe permits granted through March 1, 2023, accounting for upcoming plaza construction.
Accessibility Ramp at Idle Hour Theater: Right-of-Way License approved for ADA-compliant access, pending finalized engineering drawings.
Inter Plastics Recycling Center Expansion: Special use amendment approved for building expansion to store materials previously in trailers.

These initiatives support accessible, vibrant public spaces and local business growth.

Municipal Video Gaming Tax Deferral

Implementation of the municipal push tax on video gaming terminals was deferred to May 1, 2023, due to pending lawsuits. This ensures the city preserves its legal authority while gathering additional information on collection methods.

Conclusion

The October 10 meeting balanced immediate community needs with long-term strategic planning. Approvals for events, winter outdoor cafes, and accessibility improvements demonstrate a commitment to safe, inclusive public spaces. Meanwhile, the strong FY22 audit, new debt policy, and careful oversight of Tiff districts highlight the city’s focus on financial responsibility and sustainable growth. St. Charles continues to plan thoughtfully, ensuring residents benefit from both vibrant community programs and sound fiscal management.