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.
