St. Charles City Council Meeting Recap – January 28, 2025 Budget Session

Introduction

The St. Charles City Council held a special budget session on January 28, 2025, to review the city’s financial health, infrastructure priorities, and accessibility needs. The two-hour meeting featured updates on long-term planning, utility rates, industrial growth, and upcoming strategic initiatives.

City Financial Wellness and Budget Priorities

Finance Director Bill Hannah led an in-depth presentation on St. Charles’ financial health, emphasizing the city’s AA1 Bond Rating from Moody’s as a reflection of fiscal stability. However, city leaders noted that deferred infrastructure projects and rising operational costs have placed pressure on future budgets.

Key budget considerations included:

• The impact of the 2023 Home Rule Sales Tax increase, which generates approximately $4.7 million annually for infrastructure programs.

• Plans to formalize a draft budget by March 2025, with final approval set for April.

• An emphasis on long-term sustainability over short-term fixes, prioritizing capital investment and operational efficiency.

Capital Projects and Utility Needs

A major focus of the meeting was the city’s infrastructure needs across general, electric, water, and sewer services. Among the priority projects discussed:

• IT upgrades for citywide systems.

• Street and bridge programs, including culvert repairs.

• Lead service line replacements and well capacity expansion.

• The East Side sanitary trunk main project, with internal funding options under review.

Officials also announced that a new utility rate study will be conducted in 2025 to ensure fair and sustainable pricing.

Personnel Costs and Staffing Overview

Personnel expenses remain the city’s largest cost driver, accounting for 60% of the general operating fund. Staffing discussions included full-time equivalent (FTE) trends, wage adjustments, and the strain of delayed projects on current staff capacity.

Business Improvement Grant Program Updates

The Business Improvement Grant Program was reviewed, with proposed amendments to increase grant amounts and enhance support for ADA-related improvements. This change reflects the city’s commitment to accessibility and local business growth.

Industrial Occupancy Study Findings

An economic report revealed that St. Charles’ industrial occupancy rate is 98%, far exceeding national averages. With 9.3 million square feet of industrial space, the city’s economic base extends well beyond its downtown district, reinforcing its position as a business hub.

Accessibility Challenges Highlighted in Public Comments

Accessibility was a key theme during public comments:

• Trudy Nickel of the Equity and Inclusion Commission highlighted inaccessible bathrooms and the lack of audible signals at crosswalks.

• Sam Parker emphasized safety concerns at the East Main and Kirk Road intersection.

• Steve Ller raised concerns about water quality and electric rates, prompting follow-up actions by city staff.

These comments prompted council members to reaffirm their focus on ADA compliance and safety improvements in upcoming plans.

Key Action Items from the Meeting

• Strategic Planning Refresh: Scheduled for Summer 2025.

• Budget Development: A draft budget is due in March 2025, with a final vote in April.

• Utility Rate Study: To be initiated following completion of utility master plans.

• Lead Service Line Funding: Future discussions planned for later this year.

• Business Registration System: Staff to explore options for improved business data tracking.

• Accessibility Review: City staff to address crosswalk, bathroom, and ADA compliance concerns.

Conclusion

The January 28, 2025, City Council session offered a transparent look at St. Charles’ financial challenges and priorities, focusing on infrastructure investment, accessibility, and business growth. With a strategic planning refresh set for summer and a detailed September workshop on budget strategy, city leaders aim to balance fiscal responsibility with community needs, ensuring St. Charles remains a safe, accessible, and thriving city.

FAQs

What were the main financial priorities discussed at the January 28 St. Charles City Council meeting?

Council members focused on long-term budget planning, the impact of the 2023 Home Rule Sales Tax, infrastructure funding, and maintaining the city’s AA1 bond rating while balancing rising operational costs.

Which infrastructure and capital projects were highlighted during the meeting?

Priority projects included street and bridge programs, culvert repairs, lead service line replacements, well capacity expansion, and IT upgrades, emphasizing both long-term sustainability and operational efficiency.

How is St. Charles addressing accessibility and ADA concerns?

Council reviewed public comments highlighting inaccessible bathrooms, missing audible crosswalk signals, and safety issues at major intersections. Plans include ADA compliance improvements and updates to support accessibility in city facilities and local businesses.

What economic and industrial updates were shared in the budget session?

An industrial occupancy study revealed a 98% occupancy rate across 9.3 million square feet of industrial space, demonstrating St. Charles’ strong economic base and position as a regional business hub.

What were the key action items decided at the meeting?

Council approved strategic planning refresh for Summer 2025, a draft budget due in March, a utility rate study, lead service line funding discussions, business registration system review, and a follow-up on ADA accessibility concerns.