Sales tax hike coming July 1 in O’Fallon, Scooter’s Coffee plans OK’d, employee honored
Scooter’s Coffee could be given the green light next month when the O’Fallon City Council meets on Jan. 18.
A national chain, the drive-thru coffee shop would be located between the IHOP and the MotoMart on U.S. 50.
The council canceled the next meeting Jan. 3, and has moved the regular Jan. 17 meeting to Tuesday, Jan. 18, because of the Martin Luther King Jr. Holiday.
Wilson Waggoner of Sherrill Associates plans to develop .84 acres for a 664 square foot building at 1004 W. U.S. 50, which is an undeveloped site.
Originally known as Scooter’s Java Express, co-founders Don and Linda Eckles opened their first one in Bellevue, Nebraska, in 1998, wanting to offer world-class coffee and speedy service. They are now approaching 400 franchises in 20 states. In the metro-east, one has recently opened in Glen Carbon.
Coffee drinks are available hot, iced, and blended, and there are teas and smoothies, too, in addition to breakfast sandwiches and items like muffins, cinnamon rolls and burritos.
With staff recommendations, Scooter’s Coffee unanimously advanced from the Planning Commission to the Community Development Committee on Dec. 13. At that meeting, the planned use was amended to require sidewalks along Eagle Drive and U.S. 50, pending a right-of-way permit from the Illinois Department of Transportation. IDOT must approve the right-of-way for the U.S. 50 entrance. The zoning amendment also requires the undeveloped land on the site north of the building must be landscaped with turf and be maintained.
The council approved the amended planned use on first reading Monday, Dec. 20.
Tax Levy and Sales Tax Increase Set
In other action, aldermen approved the annual tax levy and the sales tax increase, but as was the first vote on each ordinance Dec. 6, it was not unanimous.
The Home Rule retailers’ occupation tax increase passed 11-3, with Aldermen Jerry Albrecht, Christopher Monroe and Dan Witt opposed, and the tax levy vote was 10-4, with Alderman Stephanie Smallheer joining the other three aldermen in opposition.
As he has previously, Albrecht criticized lack of time in exploring the hikes, with the set deadlines specifically for this meeting. He said they should have started the process earlier.
“Perhaps next year, we can do it better,” he said.
The sales tax increase will increase 1/2 of 1%, bringing the total home rule sales tax to 1%. The additional 1/2% is expected to provide an additional $2.1 million in revenue, with 50% going to the parks operations and the other 50% going towards Master Plan needs — a Build O’Fallon Trust Fund that will be created strictly for council-approved capital improvement projects.
The increase will go into effect July 1 and must be submitted to the Illinois Department of Revenue by April 1.
Property tax relief
Over several months, the Finance and Administration Committee conducted a comprehensive review of potentially new and existing revenue sources to determine if there were more equitable forms of taxes that would better serve the future needs of the growth and development of the city.
This move is expected to allow for property tax relief — because it eliminates the parks and general fund tax levies, which could reduce a household’s property tax by $85 a year.
A household will pay slightly more in sales tax, but that would also mean saving $15 in property taxes per year, according to Finance Director Sandy Evans.
Studies have shown O’Fallon residents only pay 40% of sales tax — visitors pay the other 60%.
The next Finance and Administration Committee is Jan. 24, and a meeting with school administrators and school board members is also planned for that evening.
The council approved the annual tax levy because it must be filed with St. Clair County by the last Tuesday in December (Dec. 28).
The rate-setting EAV is the base for the next year’s estimate as provided by the county which is projected to be $757,055,567. The current Disabled Veterans Exemption totals $90,278,984, which represents a 28% increase from the previous year.
This amount increased by $2,557,897 since the October Finance and Administration Committee meeting. Disabled Veterans Exemptions now represent 10% of the residential EAV.
The county estimates they will apply a 1.02% multiplier for O’Fallon Township and a 1.01% multiplier for Caseyville Township, thereby increasing the EAV by $7,684,114.
Estimated rate setting EAV for 2021
Because of the number of petitions that again could be filed with the Board of Review to look at property assessments, the projected EAV was reduced by $2 million.
Therefore, the estimated rate setting EAV for the 2021 Tax Levy is $762,739,681, which is $2 million lower than the 2020 Final Rate Setting EAV. However, the current estimate provided by the county showed no additions to the tax rolls for new construction since the Oct. 20 estimate, so staff is confident the EAV will increase.
In speaking with the county assessor, Evans said their department will continue to add new property to the tax rolls, which should increase the estimated EAV.
The tax levy ordinance provides for property tax relief by eliminating $100,000 from General Fund and $680,000 from Parks. Based on the current EAV estimate, the new tax levy rate will be reduced by 5.35% from the previous year to 0.8529.
As was discussed at the Nov. 22 Finance and Administration Committee meeting, the property tax relief is possible by approving an increase to the Home Rule sales tax currently in place as well as moving forward with the Video Gaming Push Tax.
The tax levy is based on dollar amount, not by rate. Therefore, if the estimated EAV is even higher than projected, the tax levy rate will be lower. If the EAV is lower, the tax levy rate will be higher, Evans noted.
With property tax relief, the city will receive $6,531,500 in revenue. Without property tax relief, the city would receive $7,311,500.
Mutual Police Aid, New Stop Signs
The council approved a Mutual Aid Agreement between the police departments of O’Fallon, Shiloh, Fairview Heights, Mascoutah, Granite City, Collinsville, Swansea, Caseyville, and Madison.
The agreement provides for emergency police aid across jurisdictional boundaries and cooperation in furnishing police services and for the use of their joint police forces, equipment, and materials.
New stop signs were approved for streets in the Bethel Ridge Farms, The Manors at Fairwood Hills, Reserves at Timber Ridge, Park Bridge Station, Milburn Estates, Parkview Meadows, and Augusta Greens subdivisions.
Reducing the speed limit to 30 mph on Oberneufemann Road on the east side of the Family Sports Park was approved. A reduction to 30 mph on Venita Road over the railroad had already happened, because of the reconstruction project where the radius of the curve at the northwest corner of the Sports Park was affected. However, this was also recommended because of the multiple pedestrian crosswalks.
Mayor Herb Roach’s Report
In his report, the mayor noted the governor has extended his emergency proclamation through Jan. 8 regarding the ongoing coronavirus pandemic.
City Hall will be closed Friday, Dec. 24, and Friday, Dec. 31, for the upcoming holiday observances of Christmas and New Year’s Day.
Roach noted Police Chief Kirk Brueggemann, the police staff, human resources and the police and fire commissioners have been busy, filling in positions left open by retirements and promotions. He said one new police officer was sworn in last week while four more are being added in January.
St. Clair County has notified the city all properties in O’Fallon Township will be reassessed in 2022 for tax purposes.
Lisa Cole’s Retirement
Roach presented city employee Lisa Cole — utility manager and technical coordinator, who is retiring after 28 years — with a plaque and praised her work as water department manager.
Evans noted Cole was the first IT employee.
“You’ve seen a lot of changes. We will miss you,” she said, pointing out Cole’s dedication and commitment to the city.
Cole said she was looking forward to new challenges in retirement.
“It’s been good to work with great people over the years. O’Fallon is a great community, and it’s been a pleasure. The city is in good hands, and it will continue to grow and progress,” she said.