2021/06/28 - Mayor's Column: Future City Finances
“An Open Door to O’Fallon”
A Weekly Note from Mayor Herb Roach
The City of O’Fallon receives revenues from various tax sources, including sales tax, property tax, state income tax, and the utility tax. Starting at the June 28th Finance and Administration Committee meeting we began a comprehensive review of these various types of income.
The purpose is not to increase taxes, but to determine if there are more equitable forms of taxes that will better serve the future needs of the growth and development of the city. After this review, we hope to answer the following questions:
- Are we set up properly for long-term success and smart growth?
- Will our revenue sources properly accommodate the high-quality amenities that our residents expect and deserve?
- Is everyone paying their “fair share” for city services?
We have just completed getting input from thousands of our citizens on what they wanted to see in our 2040 Master Plan for the future growth and development for the next 20 years. So, it is most appropriate that we review the types and amounts of revenue that we now receive and whether that matches with our future growth and needs of the City of O’Fallon that our residents have envisioned.
We do not have any preconceived notions about how this review will go. The committee could recommend no changes or there could be several changes that we should make. Some could result in decreases in some types of taxes while other could result in increases. Some types could be eliminated while different ones could be considered. Some taxes are paid by our residents while others are paid primarily by visitors to our community. Should that mix of taxes be changed? All these things will be up for review.
Having just went through a rough stretch of economic times and the projected decline of some of our revenue sources due to the relocation of the St. Clair Auto Mall. I feel that we owe it to each of our residents and businesses to do this type of careful review to set a firm foundation for the future. Our city has had major changes over the years, and we are seeing some loss in some of our current revenue sources. But, on the positive side, we are also seeing growth in some of our other revenue sources. We need to look how these changes have impacted our revenue now and how it will impact them in the future.
Finally, we need to make sure that we try to make our tax structure as equitable as possible for everyone, so that everyone contributes to the costs of maintaining our city services.
Our goal is to complete this study by December of 2021. If you have comments or suggestions, please contact your City Council members and/or attend one of our Finance and Administration Committee meetings to listen to the discussions and to give feedback. The Committee meets on the 4th Monday of each month at 5:30 PM at City Hall. It is also available for you to participate by Zoom.
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!