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O’Fallon Council votes on property tax, debt service levy for 2018

By: Jessica Meszaros


At its Aug. 23 meeting, the O’Fallon City Council voted 8-1 on an ordinance that established the 2018 property tax general levy of $.3551 and the debt service levy of $.2408 for a total property tax levy of $.5959.

Councilmember Jeff Kuehn [Ward 4] voted against the levy, and Councilmember Reid Cranmer [Ward 3] was excused from the meeting.

The Missouri Revised Statutes requires that the city levy a property tax prior to Oct. 1 annually. Prior to approving any levy, the city is required to host a public hearing. That hearing took place at the city council’s Aug. 9 work session.

The calculation of the levy is based on multiple factors, including the state’s defined cost-of-living index, the assessed value of new construction and improvements, the assessed value of added territory, last year’s ending assessed valuation, debt service information and the current assessed valuation set by the Board of Equalization. This information is subject to minimal change prior to certification of the rates by the Missouri State Auditor’s Office.

The city’s adjusted value of existing property in 2018 increased by .3761 percent over 2017 valuations; 2018 tax year is a non-reassessment year.

The basis for the debt service levy calculation is to set a rate aimed at generating adequate revenue to pay for the general obligation debt service requirements for the following year while also maintaining one year of debt service payments in reserve. O’Fallon’s city staff recommended levying a rate of $.2408, which is lower than the maximum authorized amount. However, the amount will help maintain a steady tax rate and provide sufficient revenue to pay debt service on the city’s existing debt.

According to the resolution’s paperwork, the rates as recommended would be sufficient to generate the budgeted total of about $10,500,621.

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