St. Charles still predicting budget deficit

St. Charles officials say that the city is still headed toward a small budget deficit this year, and utility rates may be on the rise next year.

Finance Director Chris Minick said this week the city is facing a deficit of about $100,000 in the general fund this year, according to the latest projections. That's actually a bit better than leaders thought finances might shake out headed into this year's budget.

“We've have been attempting to control our expenditures very aggressively,” Minick said. “That's going to remain the key to the performance of the general fund this year. We can't really control the revenue streams.”

Maybe not, but Minick said the city has seen a positive trend in the sales tax in recent months. In fact, sales tax receipts were about $240,000 better than last year at this same time. If the trend continues, it may help erase the looming deficit.

The city's share of state income tax money must come in for any chance of that becoming a reality. Minick said the state is still a couple months behind in giving the city its cut.

“We are getting cash from them sporadically,” Minick said.

The real problems, both now and in the future, is with income from the city's utilities. The electric fund is in good shape. The water and sewer funds are a different story. The water fund likely will have a $1 million deficit at the end of the year. The sewer fund will be even worse with a $1.5 million deficit.

Minick said savings will cover the deficit for now.

“But obviously that's not sustainable forever,” he said.

Minick said when budget discussions for next year begin, the staff will present some options for how to address the ongoing deficits in the water and sewer funds. The city council must approve any rate increases or fees.