Bad news budget in St. Charles

St. Charles' elected officials didn't greet news of a bleak budget for the coming fiscal year - and the next several to come - with a standing ovation for problem solving and good planning. Instead, officials offered city staff more of a calming hand placed on a shoulder signifying understanding of the burden of unmet economic expectations.

The majority of the city council, meeting as the Government Operations Committee, got its first look at the bad news budget Monday night. City employees jammed the council chambers to the point where people propped open the door and stacked up in the hallway outside just to be able to hear the explanation of why they will be asked to forego pay raises this year. The message to them was raises mean nothing if you no longer have the job to begin with. Layoffs would be the grim reality if a citywide wage freeze couldn't be agreed to.

Employees, given a chance to speak, remained mostly silent except for side conversations about the need to perhaps find even more spending cuts than those already proposed. This weekend's St. Patrick's Day parade was one such expense often targeted as largesse. But for the official record of the meeting, employees offered no public response to elected officials. City unions had only received information on the budget just hours before the meeting. Employee response will ultimately be measured in their acceptance or rejection of the proposed wage freeze.

Elected officials unanimously approved of formally offering the voluntary retirement incentive packages outlined in the budget proposal. If all 17 employees who expressed interest in the packages actually sign off, the city would save more than $800,000 a year, basically paying for the incentives in the first year. Holding those positions vacant after the incentives expire will result in pure savings in the following years.

The committee focused their questions on what-if scenarios involved with the possible creation of new taxes if the wage freeze proves to be a failed proposal.

Committee Chair Alderman Betsy Penny said she wants to see a thorough comparison of what taxes and tax rates nearby communities have for their hotels, drinking establishments and entertainment venues before even considering increased rates or an entertainment or alcohol tax.

"We have to be comparable to the other communities," Penny said. "We're all competing with them. This is a very difficult time for everyone."

St. Charles is a home rule community, giving it taxing powers above and beyond what communities such as Batavia and Geneva have at their disposal including some of the new taxes under consideration in St. Charles.

Alderman Cliff Carrignan called the budget proposal and cuts "a pretty sobering message." He said the rainy day has come for the city to dip into its savings, but it can only do that to a certain extent. Carrignan said he would not support lowering the reserves below 25 percent of the budget, as is forecast in some of budget years to come if the economy doesn't rebound.

Mayor Don DeWitte was not present Monday night, but said late last week in a meeting with the press that he believes the wage freeze will ultimately be accepted by city employees as a necessary evil in a tight budget time. He added that he believes the budget is "very responsible" and forthcoming.

City employees, staff and elected officials now have about eight weeks to hammer out all the details before the next fiscal year begins on May 1.