O’Fallon on solid footing despite year’s financial setbacks due to COVID-19
Like other cities, O’Fallon has been impacted financially because of the coronavirus public health crisis this year. State-imposed restrictions and the loss of business have affected the bottom line — but it’s not as harsh as it could have been.
“We have maintained solid reserves which have helped maintain our services to the citizens and businesses of O’Fallon, while many other cities have had to reduce services or increase costs,” Mayor Herb Roach said.
During a Town Hall meeting Nov. 18, Budget Director Sandy Evans went over the annual fiscal year audit from May 1, 2019, to April 30, 2020. She also discussed the budget process for the coming year.
The city had no material expenditures in excess of budgeted amounts for the fiscal year ending April 30, she said.
There were no new taxes or fees and no increases to any taxes or fees. The tax rate for 2019, which was charged in 2020, was .9227. This was the third year in a row of decreased real-estate rates by the city and the lowest rate since 2010.
The city’s net position increased by $12,205,592, while the long-term debt was lowered by $3,862,462. During the last three years, the debt has been lowered by over 16 percent.
One of the hardest hit departments impacted by COVID was the Department of Parks and Recreation. The park revenue was down $135,000 because of the cancellations from January to April 30, due to the pandemic.
Evans said for planning next year’s budget, they are being very conservative on their calculations.
“For FY22, we are calculating the estimated revenue in light of the current economy,” she said.
The city, like all towns in Region 4, is under tighter restrictions now as the positivity rate continues to rise.
Evans said next up is to review the 5-year Capital Improvement Plan. She complimented the city staff on how diligently they go over what is needed, what can be saved for later, and what can be cut.
“They look at the department needs and where they see themselves in the next five years,” she said. “We review new positions and what’s needed in IT. IT is a very large part of the city’s budget.”
At the Committee-of-the-Whole meeting Monday, Nov. 30, Evans said they would go over budget needs and the Capital Improvement Plan.
The city’s committees will start reviewing the financial needs.
“They will be able to provide input and give us some ideas,” she said. “I am hoping it will be a smooth process.”
The preliminary budget is expected to start going through the city’s processes in January before the city council approves it.
Next meeting slated for February
The next town hall meeting will be in February and will go over the National Citizens Survey. The purpose of the town hall meetings, held quarterly, are to provide updates on city business and answer questions from the community.
The Committee-of-the-Whole meeting will be held virtually to comply with the governor’s order on groupings and reduce the spread of COVID-19.
To view this recent meeting, it will be available on the city’s website under video on demand. https://www.ofallon.org/public-access-television/pages/video-on-demand.