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O’Fallon approves 2021 budget and 5-year capital improvement plan

At the Dec. 10 City Council meeting, Bill No. 7258 sponsored by Mayor Bill Hennessy was approved by a vote of 10-0, authorizing a 2021 total expenditure budget of $96,497,478 (including transfers). Additionally, Bill No. 7264 was unanimously approved, authorizing a 5-year capital improvement plan (with $96,497,478 for 2021). 

2021 budget

The 2021 budget is required by and is in accordance with Missouri Revised Statutes, the O’Fallon City Charter and city policy. The budget includes anticipated revenues of $93,450,415 and expenditures of $96,497,478 (including transfers). The shortfall between revenue and expenses will be made up from carryover amounts in the various funds.

Major 2021 proposed components of expenditures include:

General Fund & Capital Expenditures Fund$33,017,980
Street & Road Improvements Fund$15,615,024
Sewer Fund$13,235,613
Water Fund $7,370,690
Recreation Fund$6,974,977
Environmental Services Fund  $5,354,702
Debt Service Fund $4,292,484
Police & Road Improvement Use Tax Fund$3,199,769
Renaud Spirit Center Fund $2,683,292
Stormwater Fund$2,102,742
Sewer Lateral Insurance Fund  $889,219
Transient Guest Tax Fund      $569,455
Community Development Block Grant Fund $442,421
Public Venue Fund  $316,294
Parks Improvement Fund$265,616
Justice Center Facility Fund    $92,000
Inmate Security Fund $45,200
Police Training Fund $30,000
Total Proposed Expenditures Budget             $ 96,497,478

The personnel budget includes 451 positions at the beginning of 2021, with 12 more positions to be added during the fiscal year, for a total of 463.

A unanimously-approved amendment was added before the vote for passage to add $2,500 to the budget for the Veterans’ Commission.

Capital Improvement Plan

The 5-year capital improvement plan (CIP) is required by the City Charter, to be approved on or before the last day of the current fiscal year. The CIP is used for planning purposes, and does not constitute an approved budget. However, portions of it are used for the 2021 expenditures budget.

The new 5-year Capital Improvement Plan (CIP) includes two new funds: The Sewer Lateral Fund was used to bring the program in-house and was used to begin purchasing equipment during 2020; a CIP now has been created for this. 

In addition, a CIP category was created for the new Police & Road Improvement Use Tax Fund, to record capital purchases from the use tax receipts.  (The new use tax was approved by voters on June 2, 2020, by a 54.81% vote in favor of the proposition.)  Those use tax receipts will help relieve pressure on the General Fund, especially in future years.

The CIP for fiscal year (FY) 2021 has a total of $90.3 million in 11 major categories.

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