O'Fallon staff preview FY27 budget: $111M gross, three new positions and capital priorities
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Summary
City staff presented FY27 highlights: a $111 million gross budget (about $100M net after transfers), modest revenue growth, three proposed new positions (fleet mechanic, park urban forester, EMS captain), and capital projects including Pierce Boulevard improvements and water/sewer upgrades; final council votes planned in April.
City finance staff presented an overview of the FY27 proposed budget to the Finance & Administration Committee, outlining revenues, expenditures, positions and capital priorities ahead of final council readings in April.
Sandy summarized the citywide budget as a $111,000,000 gross figure that falls to roughly $100,000,009 after interfund transfers; staff described a roughly 3% net increase from the prior year. Sales tax is forecast to rise about 2.3%, aided in part by reclassification of certain use taxes to sales tax and a new municipal grocery tax. Pass-through revenues — including TIFs, pensions and the recently proposed amusement tax — were noted as up ~6.5%.
Expense highlights include personnel costs (about 30% of total city spending), increases in benefit costs and the addition of three new positions the budget proposes to fund: a public-works mechanic, a parks urban forester and an EMS captain. Staff also highlighted continued ERP implementation costs, lower capital spending this year because many projects completed in the prior year, and several large planned capital projects (Pierce Boulevard traffic calming and South Cherry reconstruction, water-main replacements, wastewater plant electrical substation work). Sandy said the budget will undergo final review March 23, with first reading and public hearing in April before council votes.
Ryan Johnson, speaking for the library, reiterated that the library's primary funding authority is the Illinois Local Library Act and that personnel and publications remain the largest line items; the library plans modest changes and forecasted personnel costs at roughly 66% of its budget. Committee members asked about potential state-level income-tax changes and their uncertain effect on municipal revenue; staff said they are budgeting conservatively and monitoring Illinois Municipal League activity.
Sandy encouraged council members and the public to review line-item attachments and reach out with questions prior to the final review.
