Audit of controversial O’Fallon soccer program merger finds higher revenue, lower costs
O’Fallon’s costs have lowered after the soccer club merger to form the Metro Alliance, a new market study on the Family Sports Park has concluded.
Andrew Dallner, director of the Parks and Recreation Department, announced recently that the city’s annual revenue has increased by $55,190 because of the merger of KiXX with Metro East Legacy to form Metro Alliance Club this past spring.
The city’s auditing firm, Sikich, conducted a Marketing Analysis and Cost Study, which looked at the city’s costs to manage the soccer program pre- and post-merger and the rental rates for area soccer complexes.
The Sikich study did not include the impact of soccer program revenues in their cost analysis, Dallner said. Consequently, staff prepared a spreadsheet that integrated the study’s cost analysis with revenue data from the annual budget.
This determined the increase of $55,190 when compared to the two previous fiscal years, pre-merger, he said.
The revenue in 2020 was listed as $220,500 and the same projected for 2021, but it wound up at around $294,000 post merger, he said.
The Sikich study also found that the city’s costs are significantly lower after the merger. It was $31 per hour before the merger and the anticipated cost after the merger is $16 per hour, Dallner said.
“It was great to have an outside consultant have a look at the way we operate and complete a market analysis and cost study. While we felt confident we were on the right track, it was good to get a second opinion from an outside source,” Dallner said.
“One of the most useful pieces of information we attained from the report was the cost study that noted our cost per hour for the fields. We will be able to use that information moving forward when we budget for our programming and rentals,” he said.
Dallner said staff had contacted Sikich after the council’s discussions on field rentals at the park’s soccer complex.
Sikich reported the Family Sports Park’s rental rates are consistent with other fields in the region.
It recommends the city improve the transparency in administering the soccer program.
Sikich also recommended that the city implement steps to publish the field rental criteria and rates, and to modify oversight to prevent potential conflicts of interest.
“We were not entirely surprised by the report. We try to continually assess our local competition and price accordingly,” Dallner said.
While there are no totals yet on the number of Alliance players, they are still taking high school registration.
“However, at last check, they were over 800 and counting,” Dallner said.
On Aug. 5, Mayor Herb Roach appointed Dallner to be the next director of parks and recreation. He had been named acting director nearly three months before, replacing Mary Jeanne Hutchinson, who was terminated May 13. He had worked for the city since 2006.
A merger between the O’Fallon KiXX United soccer program and Metro East Legacy to form Metro Alliance was announced on April 6.
The two clubs had worked on the merger for six months. Metro Alliance was expected to draw 800 youth to participate, ranging in age from 5 to 18.
In an official statement on Hutchison’s departure, the city said: “We are unable to further comment on specific personnel matters but can confirm that Mary Jeanne Hutchison’s employment with the city of O’Fallon was terminated on May 13, 2021. Ms. Hutchison’s termination had nothing to do with the merger between the O’Fallon Kixx United soccer program and Metro East Legacy to form Metro Alliance, which was announced on April 6, 2021.”
At public meetings, including the June 1 committee of the whole and the May 17 and June 7 council meetings, local coaches and residents expressed concern about inequity in other clubs’ playing time, disparity in rental rates and conflicts of interest within the Parks and Recreation Department.
The city then started an internal audit. Aldermen sought more transparency, admitting confusion on a series of events that caused threatened lawsuits, misinformation and youth soccer players caught in a tug-of-war between local sports clubs.
The department worked on lease agreements and accommodating requests. After meetings and discussions with representatives, issues were worked out for club practices and games scheduled at the O’Fallon Family Sports Park.
Dallner had pledged transparency after taking charge.
“I am very committed to providing the mayor and city council with accurate and up-to-date information on all aspects of what we do in parks and recreation,” he said. “It is my goal to clearly communicate what, why and how we operate, so when a council member is approached in the community by a resident, they are prepared to answer questions about the department.”
City Administrator Walter Denton informed the council’s Parks and Environment Committee at its Sept. 13 meeting that the city will work on the recommendations.
“We are working towards implementing them since we received the report,” he said.
This story was originally published September 21, 2021 at 10:17 AM.