St. Charles Approves Sales Tax and Community Funding

Meeting Overview

On February 6, 2023, the St. Charles Government Operations Committee convened to review funding requests for local institutions, discuss public infrastructure needs, and consider intergovernmental agreements. Key approvals included:

• $50,000 annual funding for the Saint Charles History Museum

• $698,600 annual funding for the Saint Charles Business Alliance

• 0.5% Home Rule sales tax increase dedicated to road infrastructure

• Intergovernmental agreement with the Saint Charles Park District for health insurance participation

The meeting also briefly touched on video gaming compliance and an ethics ordinance review.

Community and Cultural Funding

Saint Charles History Museum

• Funding Requested: $50,000 (same as previous year)

• Highlights:

  • Enhanced security and collections management

  • New exhibits, including “Radical Souls”

  • Successful VIP events and holiday gala

  • Partnerships with local businesses and grants for children’s programming

• Future Plans: Guided walking tours, restaurant history mystery walk, landscaping improvements

• Outcome: Approved

Saint Charles Business Alliance

• Funding Requested: $698,600 (funded through SSA 1B and hotel-motel taxes)

• Marketing Efforts:

  • Social media reach of 3.3 million impressions

  • Influencer campaigns and engaging video content

  • Website redesign to improve SEO and user experience

• Business Development:

  • Downtown broker tours and storefront improvement grants

  • "Made in St. Charles" program highlighting local makers

• Events: Fine Art Show, SCC Live, Jazz Weekends, Scarecrow Weekends, Holiday Homecoming

• Outcome: Approved

Sales Tax Increase for Road Infrastructure

Need for Increased Funding

• Current Street Conditions: 51-52% in “poor” or “very poor” condition

• Funding Gap: $3.5M–$4.2M annually needed for sustainable 30–40 year road cycle

• Current Funding: $2.9M annually, largely from motor fuel taxes and video gaming revenue

• Historical Context: Last sales tax increase was in 2004

Proposed Solution

• 0.5% Home Rule Sales Tax Increase

• Exclusions: Groceries, medicine, and titled vehicles

• Revenue Impact: Estimated $4.4M annually, 40-60% paid by non-residents

Public Response and Committee Discussion

• Some residents opposed the increase, citing rising city revenues from other sources and prior gas tax promises

• City staff clarified gas tax was for routine maintenance, not large-scale reconstruction

• Committee members emphasized long-term infrastructure needs and approved the ordinance to proceed to City Council

Intergovernmental Agreement with Park District

• Purpose: Allow the Park District to participate in the city’s health insurance pool (IPBC)

• Benefits: Access to Blue Cross Blue Shield network and more stable financial returns

• Duration: Temporary (~18 months) until the Park District qualifies for direct membership

• Outcome: Approved

Additional Notes

• Video gaming compliance issues were noted for some licensees, particularly regarding signage

• Ethics ordinance discussion was postponed, leading to expressed disappointment from a committee member

Key Takeaways

• St. Charles invests in cultural institutions and local business development through approved funding requests

• The sales tax increase addresses critical road infrastructure needs and long-term sustainability

• Collaboration with the Park District improves access to health insurance benefits without additional costs to the city

Conclusion

The February 6 committee meeting demonstrates St. Charles’ focus on maintaining cultural programs, supporting local businesses, and responsibly addressing infrastructure challenges. Residents can expect improved roads, continued cultural engagement, and cooperative health benefit solutions in the near future.