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Democracy on the Front Lines
City Administrator’s Blog
Walter Denton
December 29, 2009
As we come to the end of another year, it is common to see “Best of” lists in newspapers, magazines, and web sites. I am not too proud to jump on the bandwagon, so here is my “Best of the City of O’Fallon 2009.”
Considering the national economic recession and the City’s budget shortfalls, the year was not as rosy as in years past. However, we live in a great community and good things are happening! Here is my list (not necessarily ranked in priority order).
Budget: It is not news that the national economy is in poor condition, and we were not immune to what has been called the nation’s worst financial crisis since the Great Depression. Over the past 18 months, we have cut more than $3 million from the budget. Sales tax revenue has been 7% below last year and it is estimated that the total shortfall at the end of the fiscal year (April 30, 2010) will be around $500,000.
This is not necessarily “Best of” material, but the good news is that we have managed to get through the year without laying off any employees and we are becoming more efficient. We are holding 13 positions vacant right now due to attrition (retirements, resignations, etc.) and have reduced overtime by more than $140,000. The City Council also has approved several fee increases that will make some services funded by user fees rather than general taxes (development fees, tow fees, cemetery fees, and non-resident rescue fees). We will continue to do
more with less as we approach another year of expected revenue shortfalls. Our revenue levels are equivalent to what we received in 2005, yet we have to provide services to 5,000 more residents.
Municipal Elections: On April 7, voters re-elected Mayor Graham, City Clerk Phil Goodwin, and Treasurer Dave Hursey, and seven aldermen. Re-elected aldermen include Dan Polites (Ward 2), Jerry Mouser (Ward 3), Allen Medford (Ward 4), Dennis Renner (Ward 5), Ned Drolet (Ward 6), and Jerry Albrecht (Ward 7). Gene McCoskey defeated incumbent Mary Schmidt to serve as Ward 1 alderman. Municipal elections may not register very high on most residents’ priorities, but they have significant implications for your city government. As I have stated several
times in this blog, city government is important because it is the closest to the people and it provides most of your essential public services: police, fire, water, sewer, streets, parks, economic development, etc. The success and prosperity of a community (the current recession notwithstanding) relies on the leadership and vision of its elected officials. O’Fallon has been fortunate to have a progressive and stable mayor and city council for the last ten years, and it is no coincidence that O’Fallon has been so successful over that timeframe.
City Council Turnover: While the municipal elections resulted in the re-election of most incumbents, there was quite a bit of alderman turnover due to resignations and appointments. In March, John West was appointed to the St. Clair County Board, leaving a vacancy in Ward 7. Tom Faulkner was appointed to fill West’s term, but abruptly resigned shortly thereafter due to an unrelated criminal investigation and the position was vacant again. Planning Commission member David Cozad was appointed in July and will serve until 2011.
In October, Ward 4 Allen Medford resigned from the City Council. Medford has been coping with the effects of Multiple Sclerosis for several years and moved back to his hometown in South Carolina to be closer to family. His insight and intellectual rigor will be sorely missed. Planning Commission Chairman David Snyder was appointed in October and will serve until 2011.
Economic Development: During this economic downturn, commercial development was almost nonexistent. While media reports indicate that the recovery began in late 2009, it was not evident in additional commercial activity. Both residential and commercial development was slow in 2009. Around 100 new homes were built in 2009 (compared to 120 last year and 399 in our peak year of 2005), and there were no major commercial projects. The largest new buildings were schools: both the OTHS 9th Grade Center and Carriel Middle School opened in August. The largest potential development was the approval in December of the Frank Scott Lake Apartments, which will contain 232 luxury apartments and the project is expected to break ground in the spring of 2010.
Slow periods like this provide opportunities for us to evaluate our processes and make long range plans for future growth. In particular, we worked on three projects that could have major impacts on the future of O’Fallon. The Regency Park Corporate Campus and Rasp Farm Office Park are Tax Increment Financing projects that are proposed to bring numerous professional jobs to the community. In addition, we are also working on creating a major business center in the Rte. 158/I-64 corridor near Scott Air Force Base and Mid America Airport. St. Clair County plans to build a new interchange at Rieder Road and water lines were installed last fall to the area between exit 19 and the new exit 21. This area includes nearly 500 acres and will play a big part in O'Fallon’s future over the next 10-20 years. Job creation is a priority with the
City Council so O’Fallon residents will have the ability to work here rather than commuting to St. Louis for employment.
Family Sports Park: It is counterintuitive that in times of declining revenues and a poor economy, opportunities arrive for development and growth. However, it is because of the economy’s current malaise that the City was able to commission a $10 million expansion to the Family Sports Park. In 2009, Standard and Poor’s analyzed our finances and upgraded our bond rating from AA- to AA because of “strong income levels, sound financial operations with very strong reserves, and moderate debt burden.” With the increase of the
City’s bond rating, we were able to refinance our existing bonds from 20 years to 30 years, receive an additional $10 million to fund the next phase of the Family Sports Park and not increase our bond payment. The $10 million will build an additional four ball fields, two championship soccer fields and associated parking, playgrounds, trails, concessions and rest rooms. The addition will allow O’Fallon to be competitive for national tournaments and establish the City as a destination to benefit our hotel/restaurant industry.
All of this will require no additional cost to the taxpayers. Moreover, most of the cost is borne on non-residents: nearly all of the Hotel/Motel Taxes are paid by out-of-towners and we estimate 60-70% of sales taxes and Food and Beverage Taxes are paid by non-residents. Some people have inquired why the City of O’Fallon should embark on such an ambitious project when the economic situation is so dire. I would counter it is exactly in these times that we should be aggressive to boost our local economy. Sales tax revenues are declining so we need to provide a local stimulus plan. Recreation and open space are critical quality of life features among corporations looking to relocate their businesses. The sports park will be a destination for sports teams who will stay in our hotels, eat in our restaurants, shop in our stores, and provide
revenue to the City so we can provide essential services to our citizens.
Scott Air Force Base: While many companies are retracting and eliminating employees, Scott Air Force Base is growing. The relocation of the Surface Deployment and Distribution Command (SDDC) to Scott has brought several hundred new jobs to the base since the 2005 BRAC base realignment, including additional jobs for military contractors and new construction on base. Our local economy is bad, but make no mistake that things would be a lot worse if not for the stabilizing presence of Scott Air Force Base. Scott is the economic engine for O’Fallon and St. Clair County, and is the third largest employer in the entire St. Louis metro area. The new Rieder Road interchange is being built primarily for Scott Air Force Base, but it will fuel substantial economic development that will benefit O’Fallon and the entire
region.
Street construction: Folllowing the trend, there was not much street work this year, either. The only major project was the completion of the Oberneufemann Road reconstruction. Despite the promise of infrastructure funding through the federal stimulus plan, the City of O’Fallon did not receive any grants from the American Recovery and Reinvestment Act of 2009.
Water System Improvements: The two one-million gallon water tanks were completed in 2009. One of the towers is located on Kyle Road across from Fulton Junior High School and the second tower construction is located on Pausch Road north of the Bluffs at Ogles Creek subdivision. The construction of the tanks was mandated by the Illinois Environmental Protection Agency at a cost of $3 million project. In addition, water lines were extended along Rieder Road and Shiloh Valley Township Road to support to upcoming construction of the I-64/Rieder Road interchange.
Sewer System Improvements: The City’s sewer system has been declining for many years and the fee structure was not sufficient to make the necessary improvements. In May, the City Council approved a 34% rate increase to make urgent repairs to the Wastewater Treatment Plant and sewer mains. We applied for federal stimulus assistance that would have provided 0% interest loans, but we were not approved. Instead, we will apply for low-interest loans from the IEPA, which will cost more money and we will not be able to do as many projects.
Stormwater improvements: The Wesley Pond and culvert project was a major drainage project in 2009. Several failing storm drain pipes also were replaced in the Southview subdivision, which should ease flooding problems in that area.
Citizen Survey: Every two years, we conduct a survey with O’Fallon residents asking them their opinions on City services and activities. The survey is part of a national survey template so that we can compare our results with more than 350 other cities nationwide. This year’s survey results were very positive and showed that residents are pleased with City services and enjoy living in O’Fallon: 92% are satisfied with O’Fallon as a place to live and 87% are satisfied with the overall quality of live. We have been providing services
with significantly fewer resources, and it is gratifying that residents still appreciate their local government.
While we are living in a challenging era, it was still an outstanding year in the City of O’Fallon. This is an exciting time to be living in O’Fallon and we are blessed with great neighborhoods, schools, and parks. We work hard to provide exceptional services to our residents and to maintain O’Fallon’s superior quality of life.
My next blog will be a sneak peek into what’s in store for 2010. From our City family to yours, Happy New Year!
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