Our Elected Officials and city staff are often asked how the City receives operating money (General Fund) and where that money is spent. This article will explain the types of revenue that come into the City as well as how it is spent.
Let’s begin by talking about what types of revenues come into the City. Residents of O’Fallon pay personal property taxes each year with the City receiving only 11% of the total property tax bill. As you can see from the pie chart below, O’Fallon schools receive the highest percentage of property tax dollars (64%).
Total Property Tax Allocation
for O'Fallon Residents
In Budget Year 2005-2006 the City will receive a total of $2,797,236 in property tax revenue. The pie chart below shows how the City’s 11% portion of these taxes is allocated within the City budget. As you can see, only 7% goes into the General Fund.
How the City's 11% Portion of
Property Taxes are Allocated
$2,797,236 for 2005-2006 Budget Year
The City also receives revenue into its General Fund from several other sources. The pie chart below depicts our revenue sources as well as what percentage of the General Fund each represents. Sales tax is expected to generate 55% of our income into the General Fund this year, which is why sales tax revenue is so important to us. Needless to say, the generation of new sales tax revenue has become even more essential for our future.
General Fund Revenue Sources
$10,939,854 for 2005-2006 Budget
Now that we know how the money comes into the City’s General Fund, the next logical thing to talk about is how the money is spent. The pie chart at the top of the next column shows that the lion’s share of the General Fund is allocated to Police Department expenditures (44%), General expenditures (22%) and Street expenditures (18%). Note that Administration remains at 3% of expenses.
General Fund Expense Distribution
$10,939,854 for 2005-2006 Budget
The total City budget for 2005-2006 is $34,306,872, reflecting a 28.88% decrease over last year’s budget. This decrease is primarily due to the construction costs for the new Public Safety Facility occurring in last year’s budget. The chart below shows how the money will be spent. Water and Sewer Funds account for 31% of total expenditures for this year. The General Fund expenditures will amount to 32% of the total budget.
2005-2006 City Budget Summary
Where the Money is Spent $34,306,872
Now you know how the City receives its operating money, where that money is spent and our total budget for 2005-2006. The next time you are asked by a co-worker, neighbor, friend or acquaintance you will be able to share the information you have learned.
| 
