St. Charles IL City Council Winter Workshop Recap – January 25, 2024

Introduction

The City Council convened a Winter Workshop Special Meeting on January 25, 2024, for in-depth discussions on financial planning, infrastructure investments, and upcoming policy decisions. While no formal votes were taken, the workshop provided strategic direction to guide the upcoming fiscal year’s budget and key city initiatives.

Financial Health and Budget Strategy

The Finance Director presented a positive financial outlook for the city. Sales tax revenue remains the largest contributor to the general fund, with a projected 2.8-2.9% increase for the upcoming year. The city’s A1 bond rating and a reserve balance at 46.1%—well above the 25% minimum—indicate strong fiscal health.

Budget discussions focused on:

• Pension Liabilities: Council supported allocating $1.3 million from reserves to address police and fire pension liabilities.

• Capital Projects: Plans for culvert replacement, bridge studies, city hall renovations, and sidewalk programs are underway.

• Long-Term Planning: Officials proposed developing a policy for ongoing pension contributions based on year-end surpluses.

Personnel and Staffing Updates

The Human Resources Director recommended 3.25% cost-of-living adjustments and a 3% merit increase pool for non-union employees. Staffing adjustments include a net gain of 5-7 Full-Time Equivalents (FTEs), such as a Senior Code Enforcement Manager and Digital Communications Specialist, to meet strategic goals and rising service demands.

Utility Infrastructure Challenges and Rate Increases

A significant portion of the meeting focused on water and sewer system upgrades, with over $48 million invested in recent years. Upcoming projects include:

• East Side Sanitary Sewer Trunk Main ($39M)

• Lead service line replacements ($2.2M annually for 10–15 years)

• Additional well installations to ensure water supply

Given these costs, the council supported 4-5% annual utility rate increases over three years as a temporary solution, with a comprehensive rate study scheduled for 2025.

Liquor License Moratorium Debate

Council discussed a temporary moratorium on Class C liquor licenses (taverns without commercial kitchens) in downtown areas. The proposal, supported 4-3 for further committee review, aims to encourage business diversity and avoid oversaturation of bars.

Ethics Ordinance Review

Officials revisited the city’s ethics ordinance, debating whether additional restrictions were necessary beyond state statutes. After reviewing Naperville’s experience with a more restrictive ordinance, council members agreed no significant changes were needed at this time.

Fox River Dam Removal Discussions

A major topic was the Army Corps of Engineers’ recommendation to remove the Fox River Dam for environmental reasons. The Illinois Department of Natural Resources (IDNR) stated they will not act without city approval and community involvement.

To address this, the Mayor proposed a Fox River Dam Task Force to:

• Study recreational, economic, and environmental impacts

• Host public forums and create a dedicated website

• Provide recommendations by March 2025

The council expressed strong support for this transparent and inclusive approach.

Future Discussion Topics

Council members suggested reviewing:

• Zoning for building heights along the river

• Funding strategies for parking study recommendations

• Regular strategic plan updates to align with new council priorities

Conclusion

The January 25, 2024, Winter Workshop demonstrated the City Council’s commitment to financial responsibility, infrastructure investment, and public engagement. By moving forward with a multi-year utility rate plan, supporting pension contributions, and forming the Fox River Dam Task Force, the council laid the groundwork for sustainable growth and informed decision-making.

Residents can expect more detailed proposals and opportunities for input as these discussions progress, particularly regarding dam removal and downtown development initiatives.

FAQs

What was discussed at the January 25, 2024 City Council workshop?

The council discussed dam removal, utility rate hikes, pension funding, staffing, and budget priorities.

Why are utility rate increases being considered?

Rising costs for sewer, water, and lead service line replacements prompted support for 4–5% annual utility hikes.

What is the Fox River Dam Task Force?

A new task force will study environmental, economic, and recreational impacts of potential dam removal and report by March 2025.

How is the city addressing pension liabilities?

The council supported allocating $1.3 million from reserves and exploring ongoing contribution policies.

Was any action taken on liquor licenses?

A moratorium on Class C liquor licenses was debated and sent for further committee review.