$103.5 million proposed budget advances to April 17 approval with O’Fallon City Council
A proposed FY24 budget for $103.5 million will be considered for adoption at the April 17 O’Fallon City Council meeting, reflecting such capital improvements as $8 million in community park and pool upgrades and $8 million for phase 2 of a new wastewater treatment plant.
The annual budget must be passed before the start of the fiscal year May 1 by municipalities that have adopted the budget officer system and the annual appropriation budget, including an estimate of revenues anticipated to be received by the municipality in the following fiscal year, must be filed with the county.
A proposed FY24 budget for $103,546,657 reflects expenditures in all funds that are equally balanced by revenues. Compared to the budget that was reviewed at the Feb. 27 finance committee meeting, the total budget increased by $9,757,403, which was mostly due to the addition of the capital projects in the Build O’Fallon Trust Fund.
Besides the community park enhancements, the projects listed include:
Pickleball courts ($300,000): Six new pickleball courts to supplement the existing courts at Hesse Park and
Improvements to O’Fallon Station Plaza ($165,000): New concrete patio area with sunshade, new entry wall and welcome signage, sunshade covers for an existing patio in rear, and additional seating and amenities.
In the general fund, personnel cost is the biggest expense — 30% — with capital spending 17%, operations 16% and equipment 13%.
Revenue resources are sales tax, per capita share of the state income tax and state use tax, utility tax, food and beverage tax, and MECOMM reimbursement fees.
The largest expense is the General Fund of $26,666,479. The general fund contains most of the operating functions of the city.
A 9% projected increase in food and beverage tax is why FY24 revenue is listed as $1,200,00. Evans said that is conservative but based on new openings.
Sales tax should bring in $9,300,000, even with removing Auffenberg. A 9% increase is projected because of the Wayfair Act. It also includes a 4% decrease due to speculated recession, Evans noted.
According to the Taxpayers Federation of Illinois, the Wayfair Act means states possibly could force more retailers to collect tax that is already due. It is not a new tax, or a tax increase.
State Use Tax is projected at a 2% increase, $1,050,000, per Illinois Municipal League estimates. State Income Tax is projected for 16% increase, $4,500,000.
Utility Tax is listed as a 3% increase, $1,850,000.
There are consistent declines in cable franchises because of streaming not being taxed. Cable franchise fee is listed at $380,000. Likewise, consistent decline in landlines is reflected in phone franchise fee of $265,000 income.
However, the popularity of video gaming is reflected in an 18% increase of $235,000 income. But there is no increase in video gaming licenses because of the limit on machines.
More electric vehicles is also affecting the motor fuel tax funds, although a 2% increase, $1,325,000, is targeted.
Additional dollar amounts
The hotel/motel tax could see a 29% increase of $1,600,000 for the original 5% tax. But the additional 4% could bring in a 26% increase, $1,250,000.
Parks Home Rule Sales Tax projects a 53% increase — $1,400,000, based on 12 months.
The departments requesting new positions in the coming year are Public Works — a maintenance worker at the sewer plant, and EMS — four emergency medical technicians. The total costs with benefits are $500,000.
The bond debt relief is $3,406,410.
To see the budget worksheet, visit: https://go.boarddocs.com/il/ofallon/Board.nsf/files/CQ6SUY74527D/$file/Full%20report%2003202023.pdf.
