O’Fallon City Council advances $84 million budget, which includes major capital improvements
A proposed $84 million balanced budget for O’Fallon advanced for final approval by the O’Fallon City Council on Monday.
The FY20 Budget features nearly $23.5 million worth of multiple capital improvement projects and $9 million earmarked for expansion of the wastewater treatment plant to handle current and future growth.
By state law, the city must pass a balanced budget before the new fiscal year begins May 1. The FY20 Budget’s second reading will take place April 15 and will be in effect May 1, 2019, through April 30, 2020.
“The budget serves as the road map for the next year,” Mayor Herb Roach said. “It meets the needs, goals and demands of the city in all service areas.”
The proposal lists expenditures at $83,968,042, which revenue is predicted to cover, thus balancing the budget. The wastewater treatment plant’s planned upgrades projected to cost $9 million account for a 12 percent increase over last year’s budget.
The current council has prioritized public safety, economic development and infrastructure, while the city staff developed a comprehensive five-year Capital Improvement Plan that has suggested construction projects and equipment purchases to reflect the council’s priorities for budget decisions.
“The proposed budget will continue to help carry O’Fallon into the future. The budget prioritizes spending in the areas that our city council, and the residents have stated are priorities. While all city services will continue to receive adequate funding, public safety, economic development, and public infrastructure will again be highlighted in the oncoming year,” he said.
“Next year’s budget will heavily invest in our public infrastructure,” Roach said. “There is a long list of projects planned for the next year and beyond.”
The annual Pavement Management Program will continue. It is a multi-year initiative to improve O’Fallon’s streets based on a schedule of diagnostic priority.
Additional construction projects, infrastructure work & more
The big construction projects scheduled for next year include the reconstruction of Simmons Road; Phase 4 improvements to the Presidential Streets; drainage improvements on Holliday Drive and to Misty Valley; and final phase to Smiley drainage improvements.
Other infrastructure work includes watermain replacements for Southview Gardens, Mark Drive and Union Hill; sewer extension to Rieder Road and expansion of the wastewater treatment plant.
The largest of these is the expansion of the wastewater treatment plant, which will cost nearly $9 million. The improvements will provide more capacity for growth and make the plant more efficient and effective, Roach said.
“The expansion will also make the plant compliant with new standards that the Illinois Environmental Protection Agency has indicated may take effect in the near future,” he said.
As for public safety, the city now has 50 police officers, a fully consolidated dispatch center, a well-equipped emergency medical services team and a well-trained fire department.
The proposed budget does not make any major cuts in programs or expenditures. Local revenue sources have been improving, which provides money from sales tax (42 percent) and shared revenue from the state (16 percent, state income tax and use tax). That goes into the city’s general fund revenue.
“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 council will need to revisit the budget to consider additional spending cuts,” Roach said.
Economic development is a priority because O’Fallon has been going through a tremendous growth phase, Roach said.
“We are working diligently to capitalize on the growth by attracting and supporting additional smart growth of the community. I often say, ‘if you aren’t moving forward, you’re going to fall backwards.’ This next year’s budget will keep us moving forward as it focuses on future development opportunities in our growth corridors,” the mayor said.
The city staff began working on the budget in the fall. The public was encouraged to provide input at various meetings.
Roach pointed out the city met the demands by being fiscally responsible and lowered the city’s property tax levy by more than 3 percent — the lowest it has been in eight years.
To view the Capital Improvements Plan, which includes the projects scheduled over the next five years, please go to https://www.ofallon.org/administration/pages/capital-improvements-plan
To view the FY20 budget, visit www.ofallon.org or go directly to the PDF: https://www.boarddocs.com/il/ofallon/Board.nsf/files/BAFLMV532A9C/$file/Full%20Budget.pdf