Saint Charles committee approves preliminary 2025 property tax levy estimate of 3.99%

The Saint Charles Government Operations Committee voted to approve a preliminary property tax levy estimate of 3.99% for 2025 at its Oct. 20 meeting, a step staff said begins the city’s Truth in Taxation process and sets the ceiling for the final levy vote.

Bill, a city staff presenter, told the committee the recommendation is “to approve the property tax levy estimate for 2025,” and that approval at the committee level will be ratified by City Council on Nov. 3 before the final levy ordinance is adopted on Dec. 1. He said the estimate “essentially sets the ceiling for ultimate levy approval.”

The levy estimate staff presented would set the city’s illustrative levy at $15,458,196 and add bonded debt and interest of $8,285,265 for an indicative total of $23,743,461 for estimate purposes. Staff reported the proposed 3.99% increase equals $592,779 over last year and said the illustrative annual impact on a home with a fair cash value of $400,000 would be roughly $24.

Committee members asked staff for more context and examples. Vicki (committee member) asked what the city’s “corporate” line item covers; staff said it funds personnel, wages and contractual services and estimated those components at roughly $30 million–$40 million annually. Members asked for clearer, resident-friendly illustrations of impacts at different levy rates; Bill said staff could provide additional graphics and scenarios, including illustrative comparisons to higher levy rates.

Staff noted a $265,000 increase in required police and fire pension funding based on recent actuarial valuations and said pension and general corporate components together totaled about $14,865,000 in the prior year’s levy. The presenter also reminded the committee that general obligation bond principal and interest are shown in the levy process as a formality and are abated in December so they are not extended on property tax bills for the subsequent year.

Members indicated they would continue internal budget discussions before the final vote. Brian (committee member) said he planned to meet with staff to review the budget in more detail. Several members asked for illustrative impacts for other levy rates to provide perspective when answering resident questions.

The committee approved the staff recommendation by roll call vote. The motion "to approve the 2025 property tax levy estimate as presented" was moved by Munn, seconded by Jim; the roll-call votes recorded in the transcript were: Bunzart — yes; Munn — yes; Kem — yes; Spellman — yes; Petrella — no; Werbaugh — no; Bessner — yes; Fokajas — no; Folks — yes. The chair declared the motion carries.

Next steps outlined by staff: the committee’s approval will be presented to City Council for ratification at the Nov. 3 meeting, and the city will adopt a formal levy ordinance at the Dec. 1 Council meeting. Staff emphasized the procedural role of the estimate in triggering Truth in Taxation notices and timelines.