St. Charles Committee Ends Mall TIF, Backs First Street Redevelopment

The St. Charles Government Operations Committee held its regular meeting on October 29, 2024, addressing key financial reports, redevelopment projects, and legislative initiatives. Highlights included the termination of the long-standing St. Charles Mall TIF District and approval of a resolution supporting a 12-year extension for the First Street TIF District.

Insurance Renewal Approved Amid Rising Costs

During the session, Finance Director Bill Hannah presented the city’s Annual Insurance Program Renewal totaling $1,722,210. Costs rose 10.4% due to increasing property valuations and reconstruction expenses. Hannah reassured committee members that the budget overage would be covered by reserves from the city’s risk management fund.

Despite rising premiums in categories such as auto liability and property coverage, Travelers Insurance offered the most competitive terms. Committee members unanimously approved the renewal.

Comprehensive Financial Audit Earns High Marks

The committee welcomed Jim Savio from Sikich, the city’s auditing firm, to present findings from the Fiscal Year 2023 Audit. The city earned an “unmodified opinion”—the highest level of assurance—confirming the accuracy of financial statements.

Key Audit Highlights:

• No material weaknesses or significant deficiencies identified.

• Adoption of GASB Statement 96, requiring certain IT subscriptions to be classified as capital assets and liabilities.

• Overall net position increased by $31.8 million, with growth in sales tax revenue and pension funding.

The audit emphasized St. Charles’ strong financial position despite increased pension contributions and capital project transfers.

St. Charles Mall TIF Termination Releases $26M in Value

A major decision of the meeting was the termination of the St. Charles Mall Redevelopment Project Area TIF District, originally created in 2000. The TIF successfully supported the Prairie Center redevelopment project, resulting in substantial growth in property values.

Key Outcomes:

• Over $26 million in incremental Equalized Assessed Value (EAV) will now be distributed across taxing bodies.

• A surplus of $775,000 from the TIF fund will be returned to local taxing districts.

This closure marks the successful conclusion of a long-term redevelopment effort, releasing funds back into the broader community.

First Street TIF Extension to Drive Future Growth

The committee also approved a resolution to extend the First Street TIF District by 12 years. Initially created in 2002, this district faced setbacks during the Great Recession, limiting revenue growth. With $24 million in bonds still outstanding, city officials emphasized the importance of extending the district to ensure full repayment and continued downtown revitalization.

Next Steps for the Extension:

• Secure letters of support from all remaining taxing bodies, including the Forest Preserve and County.

• Senator DT to introduce state legislation for approval during the upcoming veto session.

• City commitment to early termination of the TIF if sufficient funds are collected.

Other Noteworthy Points

• Insurance increases reflect national trends in property valuations.

• Pension funding continues to improve through city contributions and market performance.

• Capital project reserves now total $12.6 million, supporting infrastructure development.

• No public comment or executive session was held during this meeting.

Conclusion

The October 29 Government Operations Committee meeting showcased St. Charles’ financial stability and forward-looking redevelopment efforts. With the termination of the St. Charles Mall TIF, the city returns millions in value to local taxing bodies, while the First Street TIF extension positions downtown for continued economic growth.

City officials remain committed to transparency, fiscal responsibility, and strategic planning to ensure that redevelopment projects benefit residents and businesses alike.