This southwest IL city sees population surge. Mayor credits that to ‘smart growth’

Mayor Herb Roach credits “smart growth” as a main reason why O’Fallon has seen the greatest surge in population numbers in southern Illinois, adding 4,008 residents.

“We are very proud to say that O’Fallon has the largest growth in southern Illinois,” Roach said. “This is a credit to those of us currently involved in city leadership and management, but it also a reflection on the work of those that preceded us in such roles.”

According to the new U.S. Census Bureau figures recently released, O’Fallon’s new population is 32,289, which is a 14.1% increase.

The city was founded in 1854, and by 1870, its population was 1,117. One hundred years later, it had grown to 7,868.

O’Fallon experienced rapid growth in the 1980s, with its westward expansion, and had 12,173 residents at the start of the decade. In 1990, the population grew to 16,073. With Interstate 64’s expansion, the city counted 21,910 people by 2000.

“O’Fallon has been a resilient city for many years, as evidenced by the consistent residential and commercial growth we’ve seen over the past 25 years, even during the Great Recession of 2008, and now during the COVID-19 pandemic,” Roach said.

The mayor noted help from citizens and cooperation from businesses.

The addition of the HSHS-St. Elizabeth’s medical campus and the growth of Scott Air Force Base has galvanized O’Fallon’s future, Roach said.

“During the last four years, we have continued to see excellent growth. Our last three years all rank in the top 10 in the 30-plus years that the city has kept records, and our marketing has brought in operations and interest from businesses that have never been in the St. Louis market and/or Illinois,” he said.

City revenue is affected by the growth, said City Administrator Walter Denton. That means several state taxes based on per capita numbers will boost finances, including the Local Government Distributive Fund and taxes for motor fuel, state use and cannabis.

The city could see an additional $1.2 million for the FY23 budget year if the revised estimates remain the same, Finance Director Sandy Evans told the city council’s Finance and Administration Committee meeting Monday.

Evans said the new population figures must be certified by the state, which could take about two to three months before it goes into effect, but could help the FY22 budget out, too. The staff based that current year budget on a population of 31,000.

With a good foundation built over the years, Roach said leaders continue to operate the city in a positive manner.

Denton said the city continually focuses on the safety and quality of life.

“It is beneficial to live in a vibrant and growing city that people want to live in,” he said.

Nearly every county in the state lost population over the past decade. St. Clair County was one of five metro-east counties with a decrease — down about 12,600 residents — and Clinton, Madison, Randolph and Washington suffered declines. Only Monroe County gained during the past decade.

St. Clair County is currently at 257,400. The county seat — Belleville — is down 2,000 for a total of 42,404. East St. Louis has lost 8,500 people and now stands at 18,469 residents.

The new data was released Aug. 12.

Special Census in 2017

O’Fallon conducted a special census in early 2017 that took four weeks to complete and cost $130,000. It showed an increase from 28,281 in 2010 to 30,440 and netted an additional $247,324 per year for the next three years.

“We felt that we had seen a considerable growth in our population that wasn’t reflected by the 2010 Census numbers,” Roach said.

“We needed the state revenues to provide essential services. It was well worth the city’s time and energy,” he said after results were revealed in July 2017.

Evans said even with subtracting the cost, it resulted in $610,000 in extra revenue.

Population Numbers to Increase City Revenue

Evans explained how the population increase will add revenue.

She showed a spreadsheet during the finance committee, which had the original FY22 budget projections, based on the Illinois Municipal League’s preliminary per capita estimate and with the city’s estimated population of 31,000. Then, she compared it to IML’s revised revenue projections and the 2020 census population of 32,289.

Because the staff used the conservative estimate, Evans said they can expect the projections to be higher.

State revenue distributed to municipalities by population include:

• Local Government Distributive Fund, which is a designated portion of state income tax revenues received by cities and counties on a per capita basis.
• Motor Fuel Tax is collected from drivers operating motor vehicles upon public highways and operating recreational watercraft. It is based on motor fuel purchases, and a portion is given to cities.
• State Use Tax is imposed on any item of tangible personal property purchased retail and a portion is received.
• Cannabis Tax is 8% of tax collected to the LGDF to fund crime prevention programs, training, enforcing and preventing efforts related to the illegal cannabis market and driving under the influence of cannabis.

2020 State Census Details

Overall, Illinois has lost 18,124 people, for a total of 12,812,508 million.

Even though it was a much smaller decline than expected, the Congressional make-up will have one less seat, with only 17 districts to elect representatives in the 2022 election.

State legislative districts use the numbers to make sure residents are represented.

Grundy County, on the southwest edge of the Chicago metropolitan area, was the fastest-growing county in the state at over 10%.

“Local leaders can use this data to make decisions such as where to build roads and hospitals, and how to help our nation recover from the pandemic. These results will also help inform how hundreds of billions of dollars in federal funds will be distributed each year nationwide,” Acting Census Bureau Director Ron Jarmin said.

Second to O’Fallon was Edwardsville, which is in Madison County and the county seat. The city grew with 2,515 more residents for a new total, 26,808.

Overall, Madison County is down about 3,400 residents — now 265,850. Major cities suffering losses include Alton — down 2,220, now at 25,676; Collinsville — down 1,200, now at 24,293; and Granite City — down 2,300, now at 27,549.

2020 U.S. Census Details

The detailed population numbers from the 2020 census reflect a national trend of a greater concentration of people leaving rural areas and moving to larger metropolitan areas.

All 10 of the U.S. largest cities gained population since the 2010 census, including Chicago, which had small growth, a little less than 2%, but still an increase.

“Results from the 2020 census will be used for the next 10 years to shape the future of our country,” Jarmin said.

The southern and western parts of the U.S. saw the biggest growth.

Portions of this article included data provided by Capitol News Illinois.

Town Hall meeting Aug. 25

City officials plan to discuss the new census figures during a Town Hall meeting at 6:30 p.m. Wednesday, Aug. 25, at O’Fallon City Hall, 255 S. Lincoln.

“We will discuss the numbers we have so far on O’Fallon’s population and our process for using the census for the redistricting process for city council wards,” Denton said.

Updates on the tax study, city business and answering questions from the community are also part of the agenda.

Roach said they will go over the various types of taxes the council is reviewing — city taxes and what other taxes are available for municipalities.

“We are working to establish an equitable type of financing for the future of O’Fallon. This is something that has not been done for a long time — if ever,” he said.

Denton said the goal is to determine the most equitable method for city services to be funded.

“The disabled veterans’ exemption has had a significant effect on our property tax and other revenue sources are declining,” Denton said. “In addition, the 2040 Master Plan is almost complete, and we want to make sure there are adequate resources for the city to handle future growth for capital improvements and operations.

All are invited to attend and participate in-person or on Zoom at https://us02web.zoom.us/webinar/register/WN_1k5UbczpSJStViMbn4lgIQ.