2019/04/01 - Mayor's Column: Budget Priorities
“An Open Door to O’Fallon”
A Weekly Note from Mayor Herb Roach
At long last, Spring has official sprung; the days have gotten longer and warmer. And to my relief, the grass and trees are starting to turn green. This time of the year not only marks the beginning of the spring season, it is also budget time for the City of O’Fallon.
The City is required by law to pass a balanced budget before the beginning of the new fiscal year on May 1. Over the past few months, City staff and the City Council have dissected the entire budget. The City Council will vote at the April 15th City Council Meeting to approve the budget that will guide the City from May 1, 2019 – April 30, 2020. But before they give this budget their final approval. I wanted to share with you some of the highlights.
The proposed FY20 budget reflects expenditures in all funds of $83,968,042, which are equally balanced by revenues. This budget includes multiple capital projects, primarily for improvements at the Wastewater Treatment Plan, that represent a12% increase over the previous year’s budget.
When possible, the City Council’s priorities have guided the budget decisions. Emphasis has been placed on Public Safety, Economic Development, and Infrastructure. In particular, City Staff developed a Capital Improvements Plan (CIP) that schedules equipment and construction projects around these goals and others.
The big construction projects scheduled in the next year include:
- The annual Pavement Management Program, a multi-year initiative to improve O’Fallon’s streets
- Simmons Road reconstruction
- Presidential Streets Phase 4 improvements
- Holliday Drive drainage improvements
- Misty Valley drainage improvements
- Final phase of the PSB to Smiley drainage improvements
- Watermain replacements for Southview Gardens, Mark Drive and Union Hill
- Sewer extension at Rieder Road
- Expansion of the Wastewater Treatment Plant
The largest of these is the expansion of the wastewater treatment plant which will cost nearly $9 million. This expansion will provide more capacity for growth and will make the plant more efficient and effective. The expansion will also make the plant compliant with new standards that the Illinois Environmental Protection Agency (IEPA) has indicated may take effect in the near future.
Local revenue sources are improving, and the proposed budget does not contain any major cuts in programs or expenditures. Most of the City’s General Fund revenue comes from sales tax (42%) and 16% comes from shared revenue from the state (State Income Tax and Use Tax). We would be more optimistic but the continuing budget crisis in the state government has the potential to significantly affect the proposed budget and City services. If additional reductions are made by the state government, the City Council will need to revisit the budget to consider additional spending cuts.
Despite the uncertainty, the budget is balanced and meets the needs, goals and demands of the City in all service areas. I almost forgot to mention that we were able to do all of this while still lowering the City’s property tax levy by over 3% - the lowest it has been in eight years!
As residents of O’Fallon, you should always be able to reach out to your elected officials and ask questions about what is happening in O’Fallon. Having open communications is important to me and something I care very deeply about. Thank you for reading, and please remember, my door is always open!