St. Charles Committee Approves 4.99% Tax Levy and Ends Foundry TIF District

Sep 8
3 min read

Introduction

On November 12, 2021, the St. Charles Government Operations Committee held a significant meeting to address pressing fiscal matters. The committee approved a 4.99% preliminary property tax levy and voted to terminate the Foundry Business Park TIF District after 23 years of successful redevelopment. Department heads delivered detailed reports outlining the impact of budget cuts, pension obligations, and delayed capital projects, emphasizing the need for stable funding to sustain essential city services.

Approval of the 4.99% Property Tax Levy

The highlight of the meeting was the approval of a 4.99% property tax levy increase, amounting to $24,576,475. This decision passed with a 7-1 vote, signaling strong support for proactive financial measures.

Rationale for the Levy Increase

Finance Department representatives emphasized that this increase was necessary due to:

Doubling pension obligations in recent years.
Rising debt service payments impacting overall city finances.
The need for stable revenue sources beyond volatile sales and alcohol taxes.
The statutory separation of the levy approval from the budget process, requiring early approval to project future revenues.

Departmental Presentations Highlight Budget Strain

Department leaders gave detailed reports on the consequences of budget constraints, emphasizing operational and long-term planning challenges.

Public Works Department

Public Works Director Keith highlighted:

Deferred infrastructure projects, including Seventh Avenue Creek improvements, street resurfacing cycles now at 55 years, and delayed stormwater upgrades.
Operational reductions in snow removal and downtown landscaping.
An annual funding need of $1.9 million to bring resurfacing cycles back in line with best practices.

Human Resources Department

HR Director Jen addressed:

The urgent need for employer branding and competitive benefits to attract skilled talent in key roles.
Increasing costs of compliance mandates like paid parental leave and union initiatives.

IT Department

The IT Director reported:

A reliance on extended warranties due to deferred replacements.
An upcoming website overhaul and improved livestreaming capabilities as critical priorities.

Police Department

The Police Chief shared:

Cuts in staffing, including the loss of two sworn officer positions.
Reliance on fine revenue and narcotics seizures to fund squad car replacements.
The state’s unfunded body camera mandate, costing $60,000 annually or $400,000 over five years.

Committee Deliberations and Decision

After an extensive discussion, aldermen acknowledged past fiscal restraint but agreed the increase was necessary to preserve the city’s service quality and infrastructure. The levy increase will be officially filed in December 2021.

Termination of the Foundry Business Park TIF District

The second major decision was to terminate the Foundry Business Park TIF District.

TIF District Achievements

Established in 1997 to redevelop a blighted area.
Successfully transformed the site into a thriving business park.
Facilitated infrastructure upgrades, including storm sewers, roadways, and utilities.
The city’s $4.2 million in bonds were repaid on schedule.

With the district reaching its 23rd year, state law mandates its closure. Remaining funds will be allocated to public works projects, with proposals coming before year-end.

Future Planning and Action Items

The committee also discussed American Rescue Plan Act (ARPA) funds and potential federal infrastructure allocations. Key next steps include:

Incorporating levy revenue into the next fiscal year’s budget.
Reviewing proposals for remaining TIF funds.
Continuing capital planning discussions in February 2022.

Conclusion

The November 12 meeting reflected St. Charles’ commitment to fiscal responsibility and long-term infrastructure planning. The property tax levy increase aims to stabilize city finances and address mounting obligations, while the closure of the Foundry Business Park TIF District marks the end of a successful redevelopment era. Together, these decisions set the stage for continued investment in the city’s growth and stability.