The City of O’Fallon has experienced rapid growth during the past ten years. The number one reason people are moving to our City is so their children can receive the best possible education by attending our great schools. This rapid growth has unfortunately placed a great burden on our already financially-strapped school districts.
While quality public education is a priority for the City, and the City plays an important role in residential development, we have limited ability to stop or slow the growth. This article will explain the City’s growth situation and provide you with a peek into the future as well as explain the City’s role in managing this growth.
O’Fallon’s Growth History
Let’s begin by talking about how much growth has actually occurred. The City’s population has grown from 12,241 in 1980 to an estimated 25,000 in 2004.
City of O’Fallon Population Growth:
1980—12,241
1990—16,073
1995—18,519
2000—21,910
2004—25,000 (estimated)
Over the past seven years, we have also seen new business growth. In 1997 there were 500 businesses located in our City compared to 679 in. These businesses consist of car dealers, banks, hotels, medical facilities, and major military contractors.
Growth Trends
Now that we know how much growth has occurred, you are probably wondering how much more growth is expected. Over the past ten years, O’Fallon has averaged 200 new homes per year. However, the City’s growth is accelerating, breaking the 300 new home barrier this year.
Where will the future new homes be built, and how many years will it take us to get to complete build-out? There are approximately 9,000 developable acres in the City’s future growth area which extends from Old Collinsville Road on the west, north to the County line, and then east to Silver Creek. Assuming that two homes would be built on each acre, there will be another 18,000 homes at maximum build-out.
City’s Role in Managing Growth
The next logical thing to talk about is the City’s role in managing this growth. The City’s role is to regulate order and quality. We review and approve the building plans for those subdivisions that will fall within 1 1/2 miles of our corporate limits. This approval process guarantees orderly development for the area surrounding our community, and guarantees that the new developments will be of high quality, and will meet the needs of the residents who will reside there. The City cannot stop development from occurring.
Nearly 3/4 of all growth is being initiated outside our City limits. There is very little land remaining in the City, if any, that is zoned for single family residential construction. Builders are free to construct new subdivisions on the unincorporated land once they receive zoning approval from St. Clair County. Once rezoned by the County, the City’s sole authority rests with HOW the subdivision is developed, not WHETHER it becomes a subdivision. In the last 24 months, St. Clair County has rezoned 921 acres for 8 subdivisions in unincorporated territory immediately outside O’Fallon’s city limits, leading to 1,589 new home lots. During the same period of time, the City has rezoned 289 acres for 4 subdivisions, leading to
561 new home lots. It’s important to realize that each of the new homes that are built outside our City are in O’Fallon School Districts.
One question that City Officials are frequently asked is “Can the City pass a Moratorium on New Development?” Because the development is occurring primarily in unincorporated territory and developers can obtain zoning, water, and sewer without approval from the City, a moratorium would be ineffectual. Without zoning or utility control, there is nothing additional the City can do to stop or slow down the growth in the unincorporated County area.
New Subdivision Ordinance
The types of things the City can do, as stated above, is to regulate order and quality. The new Subdivision Ordinance is a tool designed to assist us in improving the quality of new subdivisions. For example, developers will be required to dedicate 6 acres of park space for every 1,000 new residents or dedicate, at the City’s discretion, a fee in lieu of land. The new ordinance also contains more stringent storm water and drainage planning requirements prior to the construction of a new subdivision and greater soil erosion and grading controls.
How the City Benefits from Growth
From the City’s perspective, the growth is a good news/bad news type of situation. Contrary to some cities, O’Fallon receives relatively little property tax to fund City services. Only 11% of your total property tax bill goes to the City, and only 2% of that is used to pay for City services such as police, streets, and parks.
Instead, the City relies heavily on sales tax—56% of the City’s budget comes from sales tax. Residential growth attracts new businesses, which increases the City’s sales tax revenues, but the City loses money for every new home that is built.
For example, the City loses $242.35 per new home when the operating costs for providing basic services such as police, streets, streetlights, parks, fire, EMS, library, and administration are considered. In other words, the City realize an increase in revenues from the growth.
How the City Helps the Schools
At this point, you may be wondering what the City can and is doing to help the schools. The City Council has made a conscious effort to not increase property taxes so the school districts will have room to fund new schools and teachers. In fact, the City has not increased property tax rates for the past nine years.
We have also assisted the schools by providing new roadways to Fulton Jr. High School and an improved roadway to Moye Elementary School. In 1999, Kyle Road was built to provide access to the Jr. High at a cost of $914,833, and the $172,319 Illini Drive extension was completed the same year. In 2003, Seven Hills Road was reconstructed at a cost of $1,150,234 to improve access to the new Moye School.
As additional assistance, we provide three School Resource/D.A.R.E. police officers to the schools at an annual cost of $200,220, and 15 crossing guards at an annual cost of $45,167.
School Impact Fees
A current issue that is getting a lot of publicity is school impact fees/land dedication provisions. State law limits school impact fees to be used solely for land acquisition and capital construction. According to the State law, a formal master plan projecting student growth trends, new schools, and additional acreage needed must be completed before school impact fees can be considered by the City Council. The plan must take into account various school Districts within O’Fallon and a formula for allocating money. The area’s school districts are currently in the process of developing this plan. When the master plan is complete, the O’Fallon school districts can submit their proposal to the City Council.
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