Saint Charles manager presents $5.4 million draft budget with wage increases and water-project funding

The Village manager presented the Village of Saint Charles draft fiscal-year 2025–26 budget at a council budget workshop, saying the plan totals “over $5,400,000” and includes a general fund of $2,226,946 and proposed wage and benefit increases for village staff.

The budget presentation laid out revenue and expenditure details and flagged several grant-funded projects. The manager said property-tax revenue is budgeted at about $1,078,000, noted $54,211 in unpaid property taxes the village expects to receive after the fiscal year, and listed state revenue-sharing totals including $49,043 in state-shared revenue and roughly $212,770 in constitutional revenue sharing. The draft also includes a $1,000,000 congressional appropriation the village has received and proposes transferring that amount from the general fund into the water fund to begin “phase 2” of a water infrastructure project.

Why it matters: the draft would increase payroll costs while using a mix of grants and transfers to advance water and capital projects, affecting taxpayers, water customers and village employees.

The manager told council the budget proposes wage increases across departments to improve recruitment and retention, including raising long-tenured office staff wages to about $20 per hour and moving several public‑works and police positions into higher pay steps (the manager cited bringing some positions to about $22 per hour). The presentation said those increases, plus stepped-up pension and other post‑employment benefits (OPEB) funding, remain under 25% of the total budget.

The draft reflects steps the village has taken on retirement and OPEB funding: the manager said the village’s OPEB funding ratio has risen from around 59% to roughly 70–75% as the village increased its contributions. The audit-driven accounting change places $50,000 in pension-plan expenditures in the treasurer’s department column and about $115,000 in the police department for current pension liabilities.

Water, sewer and streets: the draft shows continued heavy investment in utilities. The water fund includes a $1,000,000 transfer from the general fund tied to the congressional appropriation to accelerate phase 2 work that the manager said will cover parts of Old Side, Cherry, Spruce and East Bell and other streets. A separate TMF grant bid opening was noted; the manager said the TMF work will locate and map roughly 354 service lines and will GPS and photograph each line for the village GIS, which the manager said will help target lead or galvanized service-line replacements over the next 20 years.

A six‑year capital-improvement plan accompanies the budget. The manager said the village is planning sewer upgrades in 2027 with an estimated cost around $1,300,000 and that earlier water improvements of about $3.8 million will be paid over the next 20 years. The presentation confirmed the village has 5.41 miles of major streets and 10.58 miles of local streets and identified state Act 51 revenue and recent county millage revenue as funding sources for road work and sidewalks.

Public safety and equipment: the manager said police capital outlay is lower this year by about $55,000 because a vehicle replacement occurred last year, but the police budget still includes equipment purchases such as a truck box, body camera and taser. The capital-equipment fund is being used to replace aged DPW vehicles; the manager said the village has recently purchased a new dump truck, backhoe with blade and other equipment with multi‑year payments remaining.

Grants and downtown development: the manager reviewed multiple grants credited to village projects — including a $250,000 category-B Safe Routes grant (50/50 match if awarded) and other federal and state grants — and said the village has brought in roughly $2.6 million in grants during the manager’s tenure. The downtown development authority budget and façade grants also were discussed; the DDA is budgeting facade work and streetscape projects and has set aside funds for small downtown improvements.

Council discussion and next steps: council members asked about reallocating small conference funds and discussed the manager’s role in securing grants and whether some form of compensation for grant-writing should be considered. The manager said she could prepare options for the March meeting. The manager asked council to review the budget and the six‑year capital plan; she said the village attorney would also review legal language before final adoption.

Ending note: the draft remains open to council adjustments; the manager said she is available to provide supporting documentation for line-item figures and will return with revisions after council feedback.