St. Charles Approves Road Closures, Reviews Tax Levy and Pension Updates

Introduction

The St. Charles Government Operations Committee met on August 4, 2025, for a detailed review of city finances, pension valuations, and tax levy data. The committee also approved road and parking lot closures for upcoming high school homecoming parades and the Fire Department’s annual open house.

City Finance Update: Audit, Tax Levy, and Pensions

Six-Month Audit Process Reviewed

Finance Director Bill Hannah provided a comprehensive finance update, emphasizing that the presentation was informational only and required no immediate action.

Hannah detailed the city’s annual audit cycle, which spans March through October. This intensive process ensures financial transparency and accuracy for city operations.

Sales and Use Tax Trends

The finance report highlighted the positive impact of Illinois’ “Leveling the Playing Field Act”, effective January 1, 2025. The legislation redistributes use tax revenue, allowing municipalities to collect sales tax directly from online and remote retailers. Hannah noted that the shift is expected to bring net revenue increases to most Illinois cities, including St. Charles.

Additionally, Hannah clarified that sales tax revenue reports have a three-month lag, meaning early-year positive trends are often tied to the previous fiscal year.

Pension Fund Growth

St. Charles’ Police pension fund is now 58% funded, and the Fire pension fund is approximately 70% funded—both showing steady improvement. The city’s annual required pension contributions will increase by about 3.5% ($265,000) in the coming year.

Tax Levy Impact

The 2024 tax levy reflected a 1.7% levy increase, but homeowners saw an 11% reduction in the tax rate due to a 14% jump in the Equalized Assessed Valuation (EAV). This growth stems from new construction and rising property values across the city.

Utility Rate Study Preview

The committee also reviewed progress on the utility rate study, which incorporates the city’s lead pipe replacement plan—an effort projected to cost $8 million annually over the next decade. A draft report is expected in November 2025.

Event Road and Parking Closures Approved

High School Homecoming Parades

Requests from St. Charles North and St. Charles East High Schools to temporarily close parking lot B and portions of Main Street (Route 64) for September 12 and September 26 parades were unanimously approved.

Fire Department Open House

The committee also authorized closures for parking lot J and a block of North Riverside Avenue on September 6 to accommodate the Fire Department’s popular annual open house.

International Fire Code Amendment Adopted

Deputy Chief Kavalo presented a minor ordinance correction, ensuring city code reflects the 2021 International Fire Code rather than the outdated 2015 edition. The amendment was approved unanimously.

Key Decisions and Action Items

• Approved omnibus bill.

• Approved road and parking closures for homecoming parades and Fire Department open house.

• Adopted ordinance correcting city reference to 2021 Fire Code.

• Directed Finance Director Hannah to share finance update presentation with council members.

• Scheduled tax levy discussions for late summer or early fall.

• Anticipated utility rate study draft report for November.

Conclusion

The August 4, 2025, committee meeting highlighted St. Charles’ commitment to transparent financial planning and community engagement. With pension funds improving, a reduction in property tax rates, and preparations for key city events, officials continue to prioritize fiscal responsibility and public involvement. The meeting also underscored the city’s focus on infrastructure planning through ongoing studies and ordinance updates.