The primary election will include races for:

• County Board Chairman
• State Representative
• State Senator
• U.S. Congress

Because Illinois has a “partisan primary” system, voters must select either a “Democrat” or “Republican” ballot. What this means is that you cannot vote for Democrat and Republican candidates during the primary – you must choose one or the other. As an example, you cannot vote for both Kevin Burns and Sue Klinkhamer or Chris Lauzen and Bill Sarto. You must choose one party and then choose one candidate.

One of the complicating factors about the 2012 primary is that many of the districts were changed after the 2010 census results were finalized.

At the federal level, St. Charles has been part of the 14th Congressional District for many years. Under the new map, St. Charles will be split into two Congressional districts – the 14th District and the 6th District.

At the state level, St. Charles is currently divided into two Senate districts and two House districts. Under the new map, St. Charles is split into three House districts – the 49th, 50th, and 65th. St. Charles will continue to be represented by two State Senators – the 25th and 33rd districts.

I found this nifty on-line application that you can use to overlay the old map with the new map to find out what districts you reside in.

St. Charles is split into three County Board districts – District 12, District 13, and District 14. A copy of the approved map for Kane County can be found here.

If you’d like additional information about elections, Kane County residents of St. Charles can get information here. DuPage County residents can get information here.

The schedule for the 2012 primary election is as follows:

Last Day to Register to Vote – Tuesday, February 21^st

Absentee Voting Period – Thursday, February 9^th – Monday, March 19^th

Early Voting Period – Monday, February 27^th – Thursday, March 15^th

2012 General Primary – Tuesday, March 20^th

I urge all St. Charles residents to identify their voting districts well in advance of the election and get educated on the candidates before casting their ballot.

The City of St. Charles recently presented the results of the 2011 Priorities Survey, a survey of residents on their opinions of St. Charles. The survey has been administered since 1996 and is used to measure satisfaction with community initiatives and programs, guide future decision-making, and improve services.

The results showed the following: 

• St. Charles is valued as a place to live.
• Services are viewed favorably and worthy of taxes paid.
• Communication with residents is viewed positively.
• Opinions of community appearance have improved.
• Views regarding downtown St. Charles have improved.

More importantly, the ratings reflect a strong recognition that St. Charles continues to provide high level of service given the economic climate.

In 2011, over 96 percent of respondents rated St. Charles as a “good” or “excellent” place to live.  This is comparable with prior surveys. However, the number of respondents who rate St. Charles as “excellent” increased to 57%, an increase of 11% from 2009. In prior surveys, the percentage of “excellent” ratings has ranged from a low of 39% in 2001 to 48% in 2007.

Other important findings from the survey are:

• 77% of respondents rated the city’s communication efforts as “good” or “excellent.” This represents a 6% increase from 2009.
• 72% of respondents believe that “Community Appearance” has improved, a 1.5% increase from 2009.
• 70% of respondents believe the downtown has improved, an increase of 1% from 2009.
• Public safety services received extremely high marks from those that needed them.
• Maintenance of infrastructure and utility systems was viewed favorably.

Additional data from the survey results shows that 30% of respondents rated traffic circulation for trips across the Fox River as “poor” or “very poor.” The intersection of IL 31 and IL 64 was cited numerous times as a difficult area to navigate. The construction of the Red Gate Bridge will improve that situation by providing an alternative to those who live north of Main Street.

East Main Street was identified as an area of concern with over 40% of respondents rating the appearance of the area as “poor” or “very poor.” The reconstruction and widening of East Main Street from 7th Avenue to Pheasant Run will improve the appearance of the corridor and should provide long-term benefits to property owners and businesses in the area. In addition, the city is working to evaluate the potential of a special taxing district for East Main Street to encourage the redevelopment of older, tired buildings and properties.

The past three resident surveys have shown some dissatisfaction with drinking water quality with 18-20% of respondents rating it “poor” or “very poor.” The City Council has previously elected not to pursue a city-wide system to soften water; however, the construction and operation of the city’s new Radium Removal facility will condition water for many St. Charles residents and improve quality.

In conclusion, the 2011 survey is considered to be a great success. Residents are very satisfied with overall quality of life in the community and the services the city provides. The ratings also reflect strong recognition that St. Charles continues to provide a high level of service given the economic climate. Finally, while there are areas identified for improvement, the city is already working on many programs and initiatives to address these concerns.

Thank you to all residents who participated in the survey and, more importantly, thank you for your positive feedback on the services that the City provides!

For instance, did you realize that during the period between April 30, 2008 and April 30, 2010, the City cut $5 million in expenditures from the General Fund?  Expenditure levels fell from $42.7 million in 2008 to $37.7 million in 2010.  This represents an 11.9% reduction in General Fund expenditures during that 24-month period.  This reduction was highlighted by a wage freeze that each and every employee of the City took during fiscal year 2009-2010.  This resulted in over $1.2 million of savings to the taxpayer.  Other measures undertaken were suspension of the spring clean-up program, elimination of travel and training, deferral of vehicle replacement funding, and deferring or eliminating various capital and maintenance projects.

The City continues to benefit from these expenditure reduction efforts.  City expenditures in the General Fund for fiscal year 2011 were just under $40 million or $2.7 million lower than they were in 2008.  That equates to a 6.30% reduction.   Additionally, the City has eliminated the equivalent of 54 full-time positions from its payroll.  This 16% staffing reduction was achieved through attrition of positions and did not involve layoff of employees. 

Projections for the current fiscal year ending April 30, 2012 reflect that the City will end the year with an estimated expenditure level of $40.2 million, approximately 6% lower than the fiscal 2008 level.  This would mark the fourth consecutive fiscal year that expenditures would be lower than the fiscal 2008 level.  Additionally, this represents a miniscule 0.5% increase in expenditure levels over fiscal year 2011. 

The City has managed its revenue sources in a similarly prudent manner.  For calendar year 2012, the City is maintaining its operating property tax levy at a consistent level of approximately $12 million for the third straight year.  This means that the City is not asking its taxpayers to pay more in property taxes to the City for the third consecutive year.  Many property owners have seen the City portion of their property tax bills decline.

The City’s fiscal responsibility was noted by Moody’s ratings service which affirmed the City’s Aa1 debt rating in September of 2011.  Moody’s cited “strong financial operations and solid reserve levels,” as well as noting in its report the City’s “demonstrated history of reacting to budgetary challenges.”

The City’s guiding fiscal principle during these challenging economic times has been to “match our expenditure level to the level of our revenues.”  The table below reflects just how successful those efforts have been.

Everyone has been impacted by these challenging economic times.  Recognizing and reacting to the situation in a timely manner has been essential to the City’s ability to maintain its fiscal health.  We have quietly and efficiently gone about the business of reducing expenditures to coincide with the level of revenues expected.  This process has been so quiet and efficient, you may not even have been aware it was occurring.

Results of the 2011 Priorities Survey are scheduled to be posted to the City’s website and presented to the City Council in January 2012. In the meantime, here are some of the preliminary findings of the survey:

• residents value St. Charles as a place to live,
• communication with residents is viewed positively,
• opinions regarding the vitality of downtown have improved.

In fact, 96.4% of respondents rated St. Charles as a “good” or “excellent” place to live.  The percentage of respondents that rated St. Charles as an “excellent” place to live increased by 11.4% from the 2009 survey.

Preliminary results also show that:

• 77% of respondents rated the city’s communication efforts as “good” or “excellent.” This represents a 6% increase from 2009.
• 91% of respondents believe it is important to have a welcoming and pleasing downtown.
• 70% of respondents believe the downtown has improved, an increase of 1% from 2009.

Additional data from the survey results shows that:

• 70% of respondents believe that additional retail businesses are needed in St. Charles.
• 30% of respondents rated traffic circulation for trips across the Fox River as “poor” or “very poor.” The intersection of IL 31 and IL 64 was cited numerous times as a difficult area to navigate.
• East Main Street was identified as an area of concern with over 40% of respondents rating the appearance of the area as “poor” or “very poor.”

Thank you to all residents who participated in the survey and, more importantly, thank you for your positive feedback on the services that the City provides.

Stay tuned for the full results of the 2011 Priorities Survey!

The First Street Redevelopment Project has enjoyed great success to date. Many new stores and restaurants have located there. The public plaza has become a new community gathering place. In addition, the public parking structure serves the greater downtown area with convenient, free parking. Our downtown remains one of the most vital in the western suburbs due to cooperation among the City, property owners, and downtown business owners and operators.

First Street is a project with 5 distinct phases. To date, 2 of the 5 phases have been completed.

Phase 3 of the First Street Redevelopment project was to consist of three mixed-use buildings (residential, retail, and office) and a parking structure located between Main and Illinois streets and the Fox River. The construction budget for the private developer portion of the approved phase is approximately $40 million. There are also approximately $6 million in public improvements for the City to undertake including 100 parking spaces, riverwalk, plaza, streetscape, and street lighting.

Under the terms of the redevelopment agreement, Phase 3 was to commence by March 1, 2009. The Great Recession and resulting impact on the housing market stalled the project. Financing could not be secured by the development team. Representatives of the City and the developer have been discussing Phase 3 regularly in an effort to get the project out of the ground.

In February, 2011, the City hosted a meeting with representatives of 1^st Street LLC and a potential development partner, Inland Real Estate Development Corporation, to discuss the First Street project. The purpose of the meeting was to discuss a potential for the parties to joint venture on Phase 3 of the project and to retool it in response to the current economic conditions.

Inland developed a revised concept plan for Phase 3 that would result in changes from the original plan. The proposed buildings would be 5 stories tall (the same as the approved plan) with the 2nd floor office space being removed. The new proposal consists of first floor retail/commercial space and 4 floors of rental apartments above. The number of residences would increase from 61 under the current plan to approximately 125 under the proposed plan. In addition, the footprint of the proposed building would be reduced, providing for additional open space along the Fox River.

Representatives of Inland believe that the project can obtain financing and report that they are ready to proceed in a joint-venture with 1^st Street LLC. Both companies are currently discussing the terms and conditions under which they would work together to develop Phase 3 of the project. The target for construction is Spring/Summer 2012.

With the originally approved project, the current economic and financing climate make the project infeasible in the short term. There is no timetable for construction and no timetable for the buildings to begin generating economic activity for the downtown and the TIF. It’s the proverbial “two in the bush.” The upside of moving forward with the modified proposal is that we now have a defined project and schedule. With the modified proposal, we have greater certainty for the project. It’s the proverbial “one in the hand.”

Benefits of proceeding with the proposal include new retail and restaurant space to complement what exists today. It would also increase the number of consumers in the downtown area, resulting in increases in foot traffic and sales. This will support existing stores and help to attract new businesses. In addition, the development of rental units responds to the current mortgage environment, housing market demand, and the project development financing climate.

On Monday, December 12th, the City Council’s Planning & Development Committee recommended that the concept be endorsed. On Monday, December 19th, the Council is expected to approve that recommendation and direct city staff and legal counsel to continue working with 1st Street LLC and Inland.

You can view the preliminary drawings of the proposed project here.

The 2010 census showed population growth in the west and northwest portions of St. Charles. The wards needed to be adjusted to reduce disparity in population. In addition, the prior map had some irregular boundaries that needed to be corrected.

In order to complete the task, Mayor DeWitte and the City Council established a “Redistricting Task Force” of three aldermen to work with city staff and legal counsel to redraw the wards. Aldermen Jim Martin, Cliff Carrignan, and Bill Turner were appointed to this task force.

The task force held its first meeting on Monday, October 24th. At this meeting, the task force received guidance from legal counsel and discussed a series of proposed changes. A second meeting was held on Monday, December 5th, to review a proposed map. At the conclusion of the meeting, the Redistricting Task Force recommended that a draft map be forwarded to the City Council for its consideration.

The Government Operations Committee is slated to review the proposed map at the February 6, 2012 meeting. City Council approval could take place as early as February 20th.

You can view the city’s current ward map here.

You can view a version of the recommended map here.

You can view population totals for the proposed map here.

You can view voting age population totals for the proposed map here.

In performing the task of redrawing the map, the task force followed certain legal requirements, including balancing population (i.e. deviation of no more than 1%). The group also considered typical neighborhood boundaries as well as commonly recognized geographic barriers in the community (e.g., Main Street and the Fox River).

The City will accept public comments on the proposed map at the February 6th meeting. Interested parties can also e-mail questions or comments to cao@stcharlesil.gov

The city’s General Fund (the fund where most city operations are accounted for) benefits from a diverse composition of revenue sources. The largest source of revenue historically has been sales tax. Property taxes are the second largest revenue stream, with the remaining revenue sources comprised of state shared income tax receipts, charges for services, as well as hotel, utility, and telecommunication taxes.

In a recent report by Moody’s Investors Service, the following statement was made regarding St. Charles:

“The city’s financial operations remain sound despite significant revenue pressures, as they are supported by solid operating reserves, a demonstrated history of reacting to budgetary challenges, and a high degree of revenue raising flexibility inherent in being a home-rule municipality.” 

For those that don’t know, non home-rule municipalities (like the City of Geneva) must be given specific authorization in state law to take an action. Home-rule municipalities (like the cities of Batavia and St. Charles) can take any action, unless it is preempted or prohibited by state law.

Frequently, I hear residents or business reflect on what services they receive for the property taxes that they pay. Many residents believe that city services are provided in exchange for the property taxes that they pay. That is true, but doesn’t tell the whole story. 

Property taxes actually cover less than 1/3 of the cost of the services that are provided. The city collects approximately $12 million annually in property tax revenue. This chart shows the items that property taxes are collected for.

The remaining 2/3 of the cost of city services comes from sources other than property taxes. These include:

• sales taxes (2% on the purchase of most items; 1% on items like food, drugs, and automobiles)
• electric franchise fees (5% on electric bills)
• hotel taxes (5% of the room rate)
• income tax (a portion of what you pay to the State of Illinois is distributed back to the city on a per capita basis)
• alcoholic beverage tax (2% on purchases)

You can view a chart of city General Fund revenue here. You can view a chart of city General Fund expenditures here.

Currently, the owner of a $300,000 home in St. Charles pays approximately $800 annually in property taxes to the city. If all city services were funded entirely by property taxes, that amount would need to triple to almost $2,400!

Other government entities in the community (e.g. school district and park district) have far less flexibility in generating revenue, so a greater percentage of their revenue comes from property taxes. Reliance on property taxes varies by agency so you should check with each for specifics.

St. Charles residents benefit from having a diverse tax base that includes a variety of businesses. It helps to keep the property tax burden lower than it otherwise would be. It also allows visitors and other non-residents to contribute tax revenue to our coffers, further benefiting residents of the community.

Communication between the agencies is well-established and is generally recognized to be superior to that in other communities. As an example, on the 2nd Thursday of each month, representatives from several local government agencies meet for a continental breakfast and to discuss issues of importance to each agency or the community as a whole. Organizations that participate in these meetings include Kane County, St. Charles Park District, St. Charles Library, St. Charles School District #303, St. Charles Township, and City of St. Charles.

Generally, each agency presents information on an important project or initiative that is being undertaken. Participants also get a chance to interact in an informal setting to discuss community issues or other related items.

Some current examples of intergovernmental cooperation include:

• Snow plowing (City and Township agree to plow streets under the other agency’s jurisdiction to maximize efficiency)
• Sharing salt (School District is allowed to use salt from City storage facilities at cost)
• School Resource Officers (City agrees to provide police officers for high schools in exchange for compensation from School District)
• Neighborhood parks on school sites (Park District installs and maintains park equipment and playgrounds at School District sites)
• Neighborhood parks on city lands (Park District installs and maintains park spaces on land owned by the City such as Langum Park and Moody Park)
• Representatives of the Park District and School District serve as members of the City’s Plan Commission to review and comment on development projects that are proposed
• City land-cash ordinance (new residential developments are required to provide land or cash to benefit the School District and Park District based on the estimated number of persons to live there or number of school-aged children)
• Community Promotion Alliance (public relations staff from agencies meet quarterly to discuss and coordinate information-sharing and promotional opportunities)
• Independence Day celebration (City and Park District share costs/responsibilities for event)

Additionally, all local governments have entered into an intergovernmental agreement to evaluate substantial property assessment appeals and to share the costs of contesting those appeals, if warranted. You can view that agreement here.

While intergovernmental cooperation is strong, local government should always look for more ways to work together for the common good of St. Charles residents.

What opportunities would you suggest to enhance intergovernmental cooperation?

Many people do not fully understand the property tax process. In addition, some members of the media may not completely or accurately report it, leaving some property owners even more confused.

Here are some key terms that property owners should know:

Property tax levy – the total dollar amount of property taxes to be collected by an agency. Any agency that collects property taxes must establish a levy. Government entities are primarily concerned with establishing a levy that provides them with the financial resources needed to fund their programs and services.

Assessed value -  1/3 of the fair market value of your property. The township assessor determines the fair market value of property, and then establishes the assessed value at 1/3 of the market value. Assessors are only concerned with establishing values and those values are established in January, after preliminary tax levies are approved.

Tax rate - the rate established by dividing the total assessed value of all property by the amount of the property tax levy. It can be expressed as a percentage of the market value, a value per $100 of assessed value, or a millage rate. In Illinois, rates are typically expressed as a value per $100 of assessed value. As an example, the city’s property tax rate is currently $0.78 per $100.

While many residents would prefer that their property tax bills be reduced by the same percentage as the market value of the property, that is not the way the process works. The amount of property taxes paid by an individual is determined only in part by the value of your property. More important is how much money each agency needs to support the programs and services it provides to the community. In addition, the Consumer Price Index is also important because that is the amount that most government agencies are allowed to increase their levy from the prior year.

At this time, the City of St. Charles expects the taxable value (assessed value) of all property to decrease by approximately 4.5% for the 2011 tax year. As stated above, this does not mean that property taxes will be reduced by 4.5%. The value of property does not have a direct correlation with the amount of money needed to fund the services that the residents and businesses of the community need or want.

Last year, the City Council established the tax levy to support city operations (again, the total amount of property tax revenue to be collected) at the same amount as 2009. We intend to do the same this year. If approved, this means that the city’s tax levy will not increase. It will be the second year in a row that the City has frozen the levy.

Finally, many people believe the City of St. Charles has the power to control the taxes levied by the school district, park district, etc. We don’t. If you are concerned about the taxes levied by a certain entity, contact that entity. There are knowledgeable staff at each agency who can answer your questions or provide explanations for the amount levied.

Currently, the state is considering reducing revenue to local governments as a means to pay for the ROEs.

Corporate Personal Property Replacement Tax (CPPRT) taxes are collected by the state on behalf of local governments. The revenue is used to replace money that was lost by local governments when our power to impose personal property taxes on corporations, partnerships, and other business entities was removed. This revenue stream was created when the new Illinois Constitution directed the legislature to abolish business personal property taxes and replace the revenue lost by local government units and school districts.

It has been reported that HB 3828 would amend the State Revenue Sharing Act to add “regional officials and local officials” to a section that authorizes CPPRT payments to taxing districts. We believe this would allow the diversion of the city’s portion of the CPPRT in order to pay the state’s 44 regional school superintendents and expect this legislation to be addressed during the fall veto session.

The City of St. Charles strongly opposes any diversion of state-collected municipal government revenue to pay for the salaries and benefits of ROEs.

Annual revenue raised by CPPRT taxes over the past several years has varied from $1 billion to $1.5 billion per year statewide. According to the Illinois Department of Revenue, the total estimated amount of CPPRT allocations for FY2012 is $1.221 billion. Municipal governments receive 20% of CPPRT money on a statewide basis. St. Charles received approximately $90,000 in CPPRT revenue in FY 2011 and is expected to receive approximately $80,000 in FY 2012.

Any loss of revenue for the city will have consequences. Just as the state is facing a budget crisis, communities have had to make tough choices to balance their budgets. Municipalities have already reduced their expenditures commensurate to the decline in tax revenues that all jurisdictions have experienced. We believe the State of Illinois needs to do the same, without taking our share of the CPPRT funds.

I encourage you to contact your state legislator and tell them to leave the city’s share of CPPRT revenue intact.