2019/12/09 - Mayor's Column: This Year's Financial Audit
“An Open Door to O’Fallon”
A Weekly Note from Mayor Herb Roach
At the November 25th Finance & Administration Committee Meeting, the City’s auditing firm (Stopp & Van Hoy) presented the findings of the annual audit for the Fiscal Year ending on April 30, 2019. In stark contrast to the financial story of the State of Illinois, O’Fallon continues to have a strong financial position.
State law requires that Illinois’ municipalities be audited by an independent agency annually to guarantee that the municipality is accountable to the citizens and taxpayers and that all legal requirements were met.
The financial audit provides a detailed report of the City’s financial statements and the auditor’s reports, analysis, and recommendations. I want to share with you some of the highlights.
For the 19th year in a row, the City of O’Fallon has ended the year in the black; with revenue that exceeded expenses. This is due to a detailed, professional, and open budgeting process that includes City Staff, elected officials, and the O’Fallon community.
The City of O’Fallon ended the fiscal year with $155.7 million in capital assets (roads, parks, and buildings), $39 million in cash and cash equivalents and a AA+ Standard and Poor’s Bond Rating.
The City of O’Fallon has met all of its pension liability requirements. While many government agencies “kick the can down the road” and continue to underfund pension liabilities, leaving future generations to deal with the problem, O’Fallon has not.
Another important point: all debt held by the City of O’Fallon is properly funded. Similar to when a person acquires a loan to purchase a new home for their growing family, the City of O’Fallon has acquired loans (in the form of bonds) to pay for large capital projects to meet demands of the growing population. Over the past two years, the City of O’Fallon has reduced the City’s debt by over 10% or about $7 Million.
We have been able to do all of this while still reducing the City’s property tax levy rate for the third straight year.
If you would like to examine the entire financial audit, it is posted on the City’s website at https://go.boarddocs.com/il/ofallon/Board.nsf/files/BJ4SWS7486CD/$file/19%20-%20City%20of%20O'Fallon%20Audit%20-%20Final.pdf.
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!