O'Fallon staff present preliminary FY27 budget; ERP raises near‑term IT costs

O'Fallon City staff presented a preliminary FY27 budget to the committee, saying the leadership team will convene in February to vet department submissions and balance the plan.

Sandy told the committee the general fund is projected to see approximately a 5.5% revenue increase overall and highlighted several notable items: an estimated $1.2 million in grocery tax receipts (state reporting changes remain pending), a projected sales‑tax increase staff described in the range of about 11–14% compared with the prior year, and a roughly 20% increase in the IT budget tied to the planned ERP implementation and the need to maintain the current New World system during transition.

Sandy also reviewed proposed personnel additions that will be included in the FY27 requests: a public works mechanic, a park urban forester and an EMS captain. The packet included a 'large spend' worksheet for items $15,000 and above and a purchasing manual excerpt showing approval thresholds. Staff emphasized that items on the large spend list may or may not remain in the final budget after departmental reviews.

Staff outlined the FY27 schedule: leadership meetings begin in February, departmental presentations (including finance, community development and public works) are scheduled through March, first reading of the budget is planned for April 6, and final approval (with a public hearing) is set for April 20.

Councilmembers asked questions about how long the city can run two ERP systems in parallel, plans to preserve on‑street parking if intersections are later signalized and whether special projects such as a special census should be included. Staff said the special census is being evaluated for cost effectiveness and would not be included in the budget until a full cost estimate is received.