O’Fallon city officials reviews finances, projects as end-of-year rapidly approaches
For its year-end to-dos, O’Fallon officials are reviewing the annual tax levy, a 5-year Capital Improvement Projects plan, and the completed tax audit financial report.
For the annual tax levy — which must be filed with St. Clair County by the last Tuesday in December — the estimated rate setting EAV is $806,693,960, which is projected to be $31 million, or 4%, higher, than the 2021 final rate setting EAV.
That is the base for the next year’s estimate provided by the county — as of Nov. 22. Based on preliminary calculation, the estimated rate is 0.8394. Last year’s certified rate was 0.8358.
The annual tax levy — which is for the fiscal year from May 1, 2022, to April 30, 2023 — must be filed with the county by Tuesday, Dec. 27. Therefore, it will be on the O’Fallon City Council agenda at the Monday, Dec. 5, meeting. After the first reading, it will advance for final approval Monday, Dec. 19.
O’Fallon Finance Director Sandy Evans presented the latest totals to the council’s Finance and Administration Committee on Monday, Nov. 28. She said the current disabled veterans exemption is $111,942,901 — a 16% increase from last year — and represents 14% of the residential EAV.
Evans said the county will apply a 0.9957% multiplier for O’Fallon Township and a 1.0521% multiplier for Caseyville Township. That’s an average of 1.0239% and will increase the EAV by $8,259,739.
The projected EAV has been reduced by $2 million because of the petitions to review property assessments that could be filed with the Board of Review.
The tax levy is based on dollar amount, not by rate, Evans noted.
“So the rate was backed into and is very much subject to change and we are anticipating that rate to be even lower,” she said Tuesday, Nov. 29.
She explained that if the estimated EAV is even higher than projected, the tax levy rate will be lower. And if the EAV is lower, the tax levy rate will be higher.
Mayor Herb Roach said preparing the annual tax levies and rates for the coming year is not an easy task when they don’t receive the final value of taxable property or the final amount of tax exempted property until well after the first of the year.
“Sometimes it feels like the field goal posts are always moving,” he said in his weekly report. “We work from the best numbers that we can get by late November or early December to put forth our request. We always try to be conservative in our forecasted numbers.”
Evans said a public hearing will not be needed in December because it is not a 5% or higher increase.
In recent years, the tax rate has been the lowest in 30 years, she noted.
Capital Improvements Plan 2024-2028
Next year, the city hopes to accomplish improvements in the city parks and needed public works infrastructure among its proposed $31 million projects outlined for 2024.
Assistant City Administrator Grant Litteken went over the plans at the finance committee meeting Monday, Nov. 28.
The new CIP draft document shows $18 million earmarked for the public works department, including $6 million for phase 2 of the wastewater treatment plant. Longacre Drive and Ashland Avenue should have watermains replaced, and improvements at the Central Park and Hartman Lane intersection are on the list. Phase three of the Presidential Streets sewer work is budgeted for $1.5 million.
The Parks and Recreation Department has listed more than $9 million in the plan, including $8 million for Community Park enhancements, $300,000 for pickleball courts, and $500,000 for a north parking lot and pond renovation at the Family Sports Park, in addition to a fitness playground and solar pathway lighting separately budgeted.
Over the next five years, $97 million worth of proposed projects are represented in the new CIP that is now being reviewed by the city. The council will act upon it at a later date.
The CIP is a planning instrument that evaluates and identifies capital infrastructure projects and equipment in need of purchase, renovation, repair and/or construction.
The CIP is to systematically plan, schedule and finance capital projects to ensure cost-effectiveness.
The CIP covers projects for a period of five years and is reviewed annually, including infrastructure and construction projects that cost $50,000 or more, and equipment and vehicle purchases that cost $15,000 or more, and with an assigned depreciation life.
The annual review accommodates changing parameters based on finances available, need, condition, and operational considerations.
For a complete overview, visit: https://infinite-data.knack.com/city-of-ofallon-cip#introduction/.
FY22 Audit
Chad Lucas, a partner in Sikich Ltd., the city’s auditing firm, appeared before the committee to go over the results of the audit for the fiscal year ending April 30.
The FY 22 financial report is posted on the city’s website: https://www.ofallon.org/sites/g/files/vyhlif1031/f/uploads/final_22-8100_issued_annual_financial_report.pdf
The city has a three-year contract with an optional 2-year extension with Sikich, and just completed their second year, Evans said.
Lucas pointed out these highlights:
Governmental Activities
- $51.4 million in cash and cash equivalents
- $129.9 million in net position
- $29.5M in unrestricted
- $14.3M increase
Business Type Activities
- $26.5 million in cash and cash equivalents
- $74.0 million in net position
- $33.8M in unrestricted
- $5.0M increase
- $78K in prior period restatements
Component Unit (Library)
- $1.8M in cash and cash equivalents
- $6.7M in net position
- $1.4M in unrestricted
- $170 thousand decrease
Fund Financial Statements
General Fund
- $34.6 million in unassigned fund balance
- $7.4 million increase in fund balance
Total Governmental Funds
- $59.8 million fund balance
- $8.7 million increase in fund balance
- Evans wanted to compliment her office on their diligence.
“Our staff worked really hard on this. Robin Costello maintained the lead,” she said. “She did a wonderful job on the audit.”
