The Saint Charles City Council voted to award a utility rate study to Baker Tilly Advisory Group, Parent LP, for $92,000 to analyze electric, water and sewer rate structure and capital needs.

"They were $92,000 versus a budget of $150,000 to do this study," said Bill, a staff member who presented the recommendation. The council and staff said the study will update the city’s last comprehensive review (2017–19), incorporate recently updated utility master plans, and produce an Excel model staff can use to test scenarios.

Why it matters: staff said the study will determine long‑term rate adjustments and revenue requirements, inform debt capacity and coverage ratios for potential bond financing, and help the city decide how to fund large projects discussed earlier in the meeting—such as the Eastern Trunk Main and Well No. 8 rehabilitation. The draft report was expected by November; staff said they would use the study in budget planning and to present recommended rate changes at the start of the fiscal year if needed.

Baker Tilly was selected from five proposals after interviews and reference checks. Staff praised Baker Tilly’s comprehensive approach, emphasis on communication with council, and provision of a model to update in the future.

Council members asked about scope and customer class options, including senior discounts and different rate structures for residential, commercial and industrial customers. Staff said the firm will begin with a cost‑of‑service analysis and present rate design options for council consideration.

During public comment, a staff speaker summarized regional wholesale market developments and the council’s relationship with the Illinois Municipal Electric Agency (IMEA). The speaker said IMEA members such as Saint Charles are insulated from short‑term wholesale auction price spikes because IMEA relies on longer‑term contracts. The speaker noted the recent PJM capacity auction result that produced a large year‑over‑year increase in clearing price and that ComEd customers—who buy capacity on the open market—are more exposed to that volatility. The speaker said, "The impact of the recent and future PJM auctions will be minimal at IMEA to IMEA members, including Saint Charles," and encouraged council awareness of state and federal policy conversations affecting capacity and renewables.

The resolution to award the study passed on a roll call vote after a motion by Steve and a second by Brian.