Our Special Census project was completed in early December and the preliminary population count shows that 25,647 people currently reside in our City, up from 21,900 in 2000.
Because of our increase in population, it is projected that the City will be able to capture an additional $446,572 in state revenues per year. State Income Tax, Motor Fuel Tax, and State Use Tax are all based on per capita (population) distributions.
Another important element of our population count is the achievement of home rule status. The Illinois State Constitution allows cities that have a population of at least 25,000 to automatically become a home rule community.
What is Home Rule and What Does it mean to O’Fallon?
Home Rule allows units of local government the authority to exercise their powers more broadly than is authorized by State law. It provides a kind of self-government by which a home rule unit may exercise any power and perform any function pertaining to its governing and affairs, including, but not limited to: the power to regulate for the protection of the public health, safety, morals and welfare; the power to license; and the power to tax and incur debt. In other words, home rule units have more say over matters of local concern by being granted the ability to pass laws or regulations without depending only on permissions stated in State Statutes.
Until a home rule unit enacts an ordinance which differs from a State law or which deals with a subject not covered in the statutes, it has the same relation to the State as a non-home rule unit.
What Does Home Rule Allow?
Home rule is primarily about local control. The community and the City Council have more say over how O’Fallon should be run. Home rule permits broad powers unless preempted by State Statutes. Most powers are for local regulation. Home rule communities cannot supersede state regulations but can supersede county regulation. Home rule status does not impact motor vehicle code, licensing, or state road use. Home rule status does allow up to 2% in additional local sales tax, in 1/4% increments, but does not include food and drugs. It also allows a community to add business fees, providing they are for regulation and not revenue. Restrictions on hotel and entertainment taxes are removed under home rule and achieving home rule status does not allow the City to outlaw existing businesses or uses.
Four Common Misconceptions About Home Rule
The number one misconception about home rule is that residents fear their property taxes will dramatically increase. Home rule communities actually rely less on property tax as a source of local revenue than do non-home rule
communities. The fact is, the City of O’Fallon, as a non-home rule community, has lowered the property tax rates for City taxes for the past six years. Mayor Graham and the City Council have always been, and continue to be committed to keeping property taxes as low as possible for our residents. Achieving home rule status will not change that commitment.
Northern Illinois University (NIU) conducted a study in 2002 on how 153 home rule communities in Illinois use their home rule powers for taxing. The study findings showed that home rule leads to lower property taxes by allowing home rule communities to diversify their tax base and rely more heavily on other sources of tax revenue.
As you can see from the table below, many of these taxes (sales tax, hotel-motel tax, restaurant food and beverage tax, gasoline tax, etc.) are paid in part or in whole by non-residents of the City. In other words, home rule taxes are predominately used to shift a portion of the local tax burden from residents to non-residents.
The second misconception about home rule is that residents fear that power will be taken away from the people. The fact is that residents actually gain more power under home rule because it gives local government authority and flexibility to address local problems, lessened dependence upon the State Legislature, and more freedom from legislative mandates.
The third misconception about home rule is that it allows the City Council to drown the budget in debt. Home rule actually allows a community to reduce its borrowing costs. A home rule community has access to ordinary bank loans that are not authorized by State Statute, and they may use their credit, revenues and other resources to pay costs and to service debt related to intergovernmental activities.
The final misconception about home rule is that it causes more bureaucratic red tape. Via expanded licensing capabilities, the City of O’Fallon would be able to provide more protection for our residents against inferior workmanship by ensuring that the license holder is qualified to perform the work. Some examples of the types of businesses that could be regulated under home rule include electricians, plumbers, carpenters, installers of burglar alarm systems, and motor vehicle towing services.
As stated earlier in this article, Mayor Graham and the O’Fallon City Council have always been, and continue to be committed to keeping property taxes as low as possible for our residents. Achieving home rule status will not change that commitment.
As responsible stewards of taxpayer dollars, our elected officials will diligently utilize our new home rule powers to further improve the quality of life for the citizens of O’Fallon.
| 
