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FROM THE MAYOR...
 I am very honored that I was installed as President of the Illinois Municipal League (IML) during their annual conference that was held in September. The IML is a statewide association that represents 1,131 Illinois cities and villages and serves as a voice of Illinois municipalities in matters of common interest and on issues before the Illinois General Assembly, Congress, and state and federal regulatory agencies. The IML has played a strong and important role in several bills that were introduced in the Illinois General Assembly this past year. For example, HB 4905 contained eight reform provisions applicable to the pension funds for suburban and downstate police and firefighters. The IML published a first-of-its-kind pension study in February 2007 that examined the fiscal condition of those systems. The study found an alarming growth in debt among municipal police and firefighter pension funds. This growing debt could have threatened the availability of the necessary
funds to cover the retirement promises made under Illinois statute to firefighters and police officers. The proposed expansion of the pension system under HB 4905 was ultimately defeated, in part due to the heavy involvement of the IML. Everyone, including myself, supported the retention of current benefits for our police and fire employees. What we were opposed to was the proposed expansion of benefits that municipalities in the State of Illinois could not afford. In addition to the pension expansion bill, the IML is actively involved in routinely opposing unfunded mandates that are handed down from the State.
On a local level, it’s important for the residents of O’Fallon to know that we are managing your tax dollars in a fiscally sound and conservative manner during this period of economic uncertainty. Our budget remains balanced and we have recently cut $1,856,970 out of the total budget to reflect the reduced sales tax dollars coming to the City. Currently, we have five employee positions that will not be filled, and in August, one employee was laid off due to a reduced number of building permits requested this year. This is the first time in the history of this city that fiscal conditions have necessitated the layoff of an employee. We will continue to keep a close eye on economic conditions and will take the necessary steps to end this fiscal year in a fiscally
responsible manner.
Property taxes continue to be an issue of great concern to both myself and the City Council. I am contemplating the possibility of starting a petition that would limit the increase in property taxes for O’Fallon residents to the lesser of 5% or the increase in the national Consumer Price Index for the year preceding the levy year. More research needs to be conducted before this initiative is launched, but it is a worthy effort that, in the end, would have a positive impact on every O’Fallon taxpayer.
As one of the front page articles of this publication announced, the new Regency Conference Center is now open. I highly encourage you and your family to attend the Open House that will be held on Sunday, October 19, 2008 from 1-4 p.m. This new City facility was built without using property tax dollars and contains 13,500 square feet of meeting space. The $6 million Conference Center has a full service banquet kitchen and can accommodate 910 people in the main meeting room. Landscaping throughout the development, when complete, will be extensive and will include a lake with fountains, a gazebo and seasonal landscaping that will serve as a superb backdrop for outdoor weddings and photography. City Officials and developers Darrell Shelton and Darwin Miles of
D & D Lodging LLC recognized a need in the community and region for corporate, governmental and leisure conference and meeting facilities. This development will not only promote the growth of jobs and corporate office construction in O’Fallon, but will also provide a much-needed first class facility in which to host conferences and meetings. The City sold a $6 million bond to finance the conference center, with the 1% food and beverage tax the City Council approved in 2006 being used to make the bond payments. This tax is predominately paid by visitors to our community who stay in our hotels. No property tax dollars were used to fund the conference center. The development will add $1 million per year in property tax proceeds to the taxing bodies, $400,000 in new food and beverage tax proceeds, and $250,000 in additional Hotel/Motel tax proceeds. As a conservative estimate, the $6 million investment should generate over $30 million
in return over the first 20 years of operation. We not only believe that this outstanding development is going to be a great destination for meeting and conference planners, but also a great asset for the Metro East region and something that the residents of O’Fallon can be proud of for generations to come.
It is an honor to serve you, and I appreciate being given the opportunity to work for the residents of O’Fallon. I am willing to meet one on one with anyone who has a concern about any issues related to our city. I welcome your suggestions and comments and encourage you to contact me at 624-4500. It is through your input and dialog on important issues that we will make O’Fallon an even better place to live and work.
Gary L. Graham
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