O’Fallon adapts budget as coronavirus health emergency impacts revenue
An estimated shortfall of $2.2 million in tax revenue could impact O’Fallon because of the coronavirus public health crisis.
Complying with a state and county mandatory shutdown since mid-March, which closed non-essential businesses and dine-in service restaurants, the city is looking at reduced revenue from the loss of hotel-motel tax, food and beverage tax and sales tax, which will affect the general fund for the FY21 budget.
The $84.3 million budget was approved at the O’Fallon City Council meeting April 20 and will go into effect from May 1 through April 20, 2021. It lists $84,269,440 in expenditures and was to be equally balanced by a revenue estimate. However, because of the COVID-19 pandemic, budget modifications will be made. Right now, how much is too uncertain and cannot be pinpointed and won’t be reflected yet in the FY2021. Money from the state may be affected too, said Mayor Herb Roach.
The city has suspended any non-essential purchases until further notice to keep expenditures down. This includes large spend items, such as vehicles and equipment, hiring of new personnel, professional services for studies, and others.
Each department has submitted a list of interim cuts and deferrals to make up the shortfall, Budget Director Sandy Evans told the city council’s Finance and Administration Committee Monday. These budget modifications will likely evolve as they receive actual data on tax revenues. Amendments will be done at a future time.
The projected revisions presented include $16,500 in property taxes, $1,383,200 in sales tax, $570,000 state income tax, $105,000 in state use tax, $19,140 in video gaming proceeds and $118,500 in food and beverage tax to come to the $2,212,340 in estimated lost revenue.
The new budget had to be approved by May 1 and must be filed with the St. Clair County Clerk prior to the beginning of the fiscal year. The FY2021 budget has been presented previously at committee meetings. No changes had been made to any of the budgets since the original presentations. But now they are working on the projected sharp drop in revenue..
Roach said the city is making sure all essential services will be maintained and that they continue to have strong financial reserves.
The April 20 council meeting was conducted through the virtual Zoom platform because of the stay-at-home order during the global pandemic. Several officials were at City Hall: Mayor Roach, City Clerk Jerry Mouser, Assistant City Administrator Grant Litteken and aldermen Jerry Albrecht and Ray Holden, which is within the gathering limit of 10, and all maintained social distancing. The other aldermen joined from their homes, as did city staff members and citizens. There were 44 participants in all in the Zoom online meeting.
City council meeting information
Beginning with the April 20 meeting, registration is required, and those instructions are on the website and posted on the agenda page for every meeting. All O’Fallon committee and council meetings will be on Zoom during the shelter-in-place mandate.
In person attendance is not allowed, but public attendance and comment are available through the virtual meeting. Joshua Jenkins, a resident of Ward I, objected to the registration, stating that is a violation of the Open Meetings Act. Jenkins also spoke during both public comment sections and during the required budget hearing. He was the only resident to comment.
The council approved four labor contracts, after an executive session, including police, 911 dispatchers, Emergency Medical Services and laborers in the public works and parks departments.
The city had been in negotiations, as their agreements with O’Fallon Lodge Nos. 198 and 198-2; Illinois Fraternal Order of Police Labor Council; Local 2817, AFSCME Labor Council; and Local 670, Laborers International Union AFL-CIO, were set to expire April 30. The police union members had voted and agreed to terms April 9, civilian 911 dispatchers April 15, EMS local union April 14 and laborers union April 16. AFSCME stands for American Federation of State County and Municipal Employees.
The four resolutions covered rate of pay, wages, hours of employment, and other conditions of employment for members employed by the city. The contracts are for three years.
The city’s labor attorney Michael Lowenbaum negotiated on behalf of the city and reviewed all terms of the agreement.
O’Fallon City Council addresses other issues
In other action, the council approved donating O’Fallon Fire Department’s four Motorola XTS-2500 portable radios directly to the Hollywood Heights Fire Department, which has an immediate need for the radios. The department has donated several surplus radios to nearby fire departments in need.
At the May 4 meeting, the council is expected to act on first reading on two proposals advancing from the Community Development Committee without objection and with staff recommendations:
Also up for consideration will be the final plat for Aberdeen Village, which is a 244-unit townhome and three commercial lot community featuring a clubhouse and offices near the McKendree Rec-Plex on the east side of Scott-Troy Road, just north of U.S. Highway 50. In addition to the residential development, there is 3.47 acres of acres of commercial development, which includes a pharmacy with a drive-thru, restaurant with a drive-thru and a strip center with a mix of use, including a restaurant with alcohol sales.
The applicant is Tim Kappert. The developer has installed several of the public infrastructure items. However, he is still waiting on the final approval from St. Clair County for the roadway improvements and signal work on Scott-Troy Road. The final plat will create the necessary easements for the public infrastructure and the commercial outlots.
A joint maintenance agreement will be required for the access point with Moto Mart and the commercial lots. A note is required on the final plat prohibiting the sale of individual townhome buildings and the entire townhome development must be maintained under single ownership.
The park dedication requirement is 2.43 acres with the requirement being fulfilled through a fee in lieu of land in the amount of $123,930, $508.00 per house unit.
More land developments in O’Fallon
The final plat for Park Bridge Station, which is a 33.40-acre subdivision located just west of Venita Road and north of Fire Department Engine House #4/Headquarters, is also up for consideration at the May 4 meeting. The land was previously owned by the city of O’Fallon but was sold to the developer via an RFP process in 2016-17. Park Bridge Station was approved as a 67-lot subdivision, with lot sizes ranging from 10,000 square feet to 48,000 square feet, with an average lot size of 17,242.
It has a total of 4.51 acres of open space, designated within three outlots, consisting of area near the entrance and detention and floodplain/riparian areas. The first phase of the subdivision included 25 lots along Taylor Road and the main entrance to the subdivision. Phase 2 of Park Bridge Station includes 11.49 acres and 23 lots.
The developer purchased the land from the city in 2017. The contract for the purchase of land included a provision to defer some cost of the commercial land at the corner of Taylor Road and Venita Drive. For every residential home constructed, an additional $1,600 per lot will be added to the issuance of a building permit totaling an additional $36,800 in Phase 2.
A variance was issued to reduce the rear yard setback from 25 feet to 10 feet on lots 12, 13, 14, 21, 22 and 39.
The required landscaped berm along Taylor Road shall be in a landscape easement and the subdivision’s covenants and restrictions must provide for common maintenance and no fencing. The park dedication requirement is 1.14 acres with the requirement being fulfilled through a fee in lieu of land in the amount of $58,140 — which is $868.00 per house.
An additional $1,600 fee will be added to all new single-family residential building permits on the lots located within Park Bridge Station-Phase 2.