South St. Louis County News

St. Louis Call Newspapers

South St. Louis County News

St. Louis Call Newspapers

South St. Louis County News

St. Louis Call Newspapers

Anticipated tax revenue, grant monies to put Crestwood’s ’07 finances back in black

Crestwood projects $640,085 surplus in 2007, $9,825 surplus in 2008

Though Crestwood had a deficit of $496,464 at the end of September, expected spikes in grant monies, property-tax revenue and sales-tax revenue in the fourth quarter are projected to help push the city to a year-end surplus of $640,085, aldermen were told last week.

The city is expected to receive $14,014,727 in revenue in 2007, which would be greater than the $13,736,718 collected in 2006. Conversely, 2007 expenditures are projected at $13,374,642, which is more than the $10,878,488 spent in 2006 when the city had reported a year-end surplus of $2,858,230 in its three major funds — general, capital improvements and park and stormwater.

Assistant City Administrator Brian Gross, who presented the city’s third-quarter financial report Nov. 13 to the Board of Aldermen, noted that because of protested property taxes not yet being paid, the city had collected only $53,719, or 3.76 percent, of a projected 2007 property-tax revenue of $1,429,614.

The city also had collected $56,486 of an estimated $1,217,363 in expected grant monies for 2007.

As for sales-tax revenue, the city had collected $4,745,065 by Sept. 30, which is slightly less than the $4,960,149 collected by Sept. 30, 2006.

For the year, the city is estimated to collect $7,156,543 in sales-tax revenue, which would be lower than the $7,400,857 in sales-tax revenue generated in 2006.

The third-quarter report also shows that as of Sept. 30, the city had collected $8,235,704 in revenue — 58.76 percent of estimated revenue for the year — and spent $8,732,168 — 65.29 percent of estimated expenditures this year. The report also shows that of an original $2.87 million annual-appropriation note established in October 2006 to refinance and help pay off the city’s debt, the city still owes a remaining balance of $2,435,000 to Royal Banks of Missouri.

Funds to pay that annual-appropriation note come from property-tax revenues generated from Proposition S — a tax-rate increase of 20 cents per $100 of assessed valuation approved in April 2006 by Crestwood voters to help pay off $2 million in debt and a $1.5 million line of credit at the time. The tax-rate increase was presented as a seven-year obligation that would generate $520,000 per year.

The city’s third-quarter report shows that $533,902 had been generated from Prop S from 2006 through Sept. 30, 2007. The report also shows that the city had $4,373,220.36 in total cash and investments in all funds as of Sept. 30. On Sept. 30, 2006, the city had $1,810,485.29 in cash and investments.

That $4.3 million in cash and investments in the city’s accounts as of Sept. 30 is broken down into $2,968,098.39 in cash and $1,405,121.97 in investments.

The report shows that the city’s $2,968,098.39 in cash as of Sept. 30 is comprised of the following:

• $1,137,407.58 in the capital-improvements fund.

• $483,728.01 in the non-expendable trust fund.

• $443,053.29 in the park and stormwater fund.

• $292,071.15 in the sewer lateral fund.

• $250,032.91 in the general fund.

• $145,693.81 in the fire-protection fund.

• $50,641.04 in insurance and flex.

• $49,650.50 in the municipal-court bond account.

• $47,706.80 in the property-tax account.

• $35,192.52 in the Sappington/Watson TIF fund.

• $10,738.86 in the designated fund.

• $10,394.40 in the Watson Plaza TIF fund.

• $6,443.58 in payroll.

• $4,681.93 in the municipal-court account.

• $664.01 in the park-refund account.

As for 2008, a surplus of $9,825 is projected in the city’s three major funds after City Administrator Frank Myers’ initial review of the 2008 budget with department heads had a deficit in the three major funds of just less than $250,000.

While the city previously had a surplus of $38,980 in the 2008 budget in all three major funds, aldermen voted 7-1 in a Nov. 6 work session to recommend Myers’ proposal to allocate $41,044 in the 2008 budget for the newly created position of management analyst.

On Oct. 30, aldermen had recommended erasing $113,469 from the city’s economic-development budget, which included the elimination of the position of economic and community development manager.

Aldermen also previously recommended two additional cuts — $30,000 from the capital-improvements fund for a new sound system in the Crestwood Government Center and $10,000 from the general fund for employment-security benefits.

Before aldermen were given a chance to recommend cuts to the 2008 budget, the city’s Ways and Means Committee made several cuts and additions to the budget.

Among the budget additions were:

• $99,460 retained in the budget for one 2.5-ton dump truck after the committee initially recommended its removal. The 2008 budget has the purchase of two such dump trucks earmarked.

• $30,000 for “any legal services rendered through the redevelopment process for the Crestwood Mall.”

Among the budget cuts were:

• $25,000 for a new phone system at the Crestwood Government Center.

• $3,000 to hire an outside consultant for annual strategic-planning sessions. The committee recommended that Myers facilitate discussion at next year’s sessions.

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