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Democracy on the Front Lines
City Administrator’s Blog
Walter Denton
November 11, 2008
You may have seen last week’s newspaper article about the results of our Special Census. Our official population is 29,425. Compared to the 2005 Census, we have gained 3,634 more residents which averages 1,211 new residents per year or 4.5% growth per year.
While the number of houses built each year has declined recently, the Special Census picks up the tail end of the building boom: 399 new homes were built in 2005. This probably skews the average of new residents per year because we are not adding 1,200 new residents each year now.
While we are pleased with the results, the Census count is about 900 people more than we estimated before the Census. Ironically, the 2005 Census was around 900 less than we estimated, so perhaps we were correct in 2005 and the Census Bureau got it right the second time.
The article highlights the fact that O'Fallon is now the third largest city in the Metro East, but honestly that is not why we conducted the Special Census. It is important that people want to live in O'Fallon, and our primary concern is maintaining that high quality of life for both new and old residents.
In any case, the Special Census is necessary to officially document the additional 3,634 residents and it will help local finances. The State of Illinois provides revenue to municipalities according to population through the state income tax, state use tax, and motor fuel tax. The state currently pays $135.85 per person, so the Special Census should bring an additional $493,678 next year (assuming the state rate remains that same). Over the next two years, the total additional state revenue we will receive will be $987,356. The Illinois Secretary of State is expected to confirm the census results in December or January, so we should begin receiving the additional money in March or April.
The new money primarily will go towards two areas: operational expenses and road improvement. More residents mean into more service demands and more operational costs. The City generally does not make any money on new houses, so the added state revenue will help with extending City services (such as police and parks) to new neighborhoods. The other benefited area is street maintenance and construction: Motor Fuel Tax revenues are restricted for certain transportation activities and we need to improve roadways in the growing parts of town.
The additional revenue from the Special Census will come at an opportune time in our current economic climate of declining sales tax revenues. At a cost of $179,895, our return on investment for the Special Census is $807,461. That’s a pretty good return, particularly considering the current state of the stock market and the national economy.
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