2015/08/10 - Walter's Blog: Illinois Budget Crisis

You may have heard about the ongoing stalemate between Gov. Rauner and the state legislature over the state budget that has caused a government shutdown. We have received some questions as to how the state’s budget crisis affects the City of O’Fallon. The short answer is there will is only a minor impact to us: we continue to operate as usual. Our primary revenue sources (such as the income tax, property tax, and sales tax) are a pass-through and not subject to budget appropriation, so we will continue to receive those funds. School districts, state agencies, and social services are affected more directly.

There are two municipal revenue sources that are impacted by the state budget crisis:

• Motor Fuel Tax (MFT): Disbursements of this tax is subject to budget appropriation so payments are delayed. The state is still collecting the tax and we will receive the same amount of MFT revenue, but we will have to wait until the budget is approved. MFT is used for road projects and we have enough money in our MFT reserves to cover the delay in payments.
• Video Gambling: This tax is being held by the state because budget allocation is required to disburse to local governments. This is not a large amount of money for us, but it is yet another aspect to the state government shutdown.

While the state budget crisis has a minimal impact on the City of O’Fallon, it brings a cloud of uncertainty and unpredictability to our region. Economic growth will be challenged in O’Fallon and throughout Illinois if the state government is unable to resolve its substantial financial shortfalls. In the meantime, the City of O’Fallon continues to operate under a balanced budget and no tax increases.

Actions from the August 3, 2015 City Council Meeting:

• Resolution for the design of the Lincoln Farms Lift Station improvements project in the amount of $9,370: the lift station needs to be upgraded to handle new development.
• Resolution for the design of the Augusta/Smiley Sanitary Sewer Main replacement at a cost of $59,340: this will replace aging sewer lines.
• Resolution for the design of Simmons Road improvements for $110,000: the City received a state grant to reconstruction Simmons from the Parcs at Arbor Green to Milburn School Road.
• Resolution for placing of a sewer trunk main under the railroad tracks at a cost of $8,500: this is for the Woodstream sewer bypass project, which will replace aging sewer lines in the Woodstream subdivision.
• Resolution for the design of street lighting for the Venita Drive Overpass and New Taylor Road in the amount of $15,000: due to restrictions in the state grant, street lighting was not part of the original construction of the overpass, so we will arrange for lighting over the bridge.
• Resolution for professional services in the amount of $6,569.50 for the Highway 50 Extended Turn Lane Project Plat of Highways: this is an agreement with IDOT for the project to build a right turn on W. Hwy. 50 from I-64 to Auto Court Drive.
• Resolution accepting the preliminary plat of Bethel Farms: this is for a new 101-acre residential subdivision off of Bethel School Road.
• Resolution approving and accepting the preliminary plat of Lake St. Ellen’s Plaza: this is to rezone 5.18 acres along Old Collinsville Road from commercial to multifamily for new duplex units.
• Ordinance regarding additional stop signs in the Windsor Creek (1^st Reading): a new phase of the subdivision is complete, so stop signs need to be installed.
• Ordinances annexing approximately 101.61 acres and approving the Bethel Farms Subdivision (1^st Reading): this is for a new 101-acre residential subdivision off of Bethel School Road.
• Ordinance approving Lake at St. Ellen’s Plaza (1^st Reading): this is to rezone 5.18 acres along Old Collinsville Road from commercial to multifamily for new duplex units.
• Ordinance approving Sidewalk Dining(1^st Reading): this allows for downtown restaurants to provide outdoor dining.
• Ordinance regulating towing companies for the Department of Public Safety (2^nd Reading): this regulates towing practices with the Police Department.
• Special Event Permit for Oktoberfest on September 25-26: this is the annual festival at St. Clare School including food, drinks, and games.
• Motion to approve the purchase of an E-Class 8 Electronic Sirens for $91,899: three outdoor warning sirens are nearing their functional life and must be replaced.
• Motion to approve the purchase of the leak detection equipment for $21,455: this is detect leaks in water lines.