The Crestwood Board of Aldermen voted last week to give initial approval to the city’s 2017 budget that projects a deficit of nearly $731,000.
The proposed 2017 budget projects total expenditures of $11,360,881 with anticipated revenues of $10,630,001 — a deficit of $730,880. An ending fund balance of $6,912,600 is projected on Dec. 31, 2017.
City Administrator Kris Simpson originally proposed a 2017 budget that projected a deficit totaling $518,766. However, during a subsequent Ways and Means Committee meeting in which all eight aldermen participated, the projected deficit increased by $212,114.
First readings of ordinances for the general fund budget expenditures and the parks and stormwater fund budget expenditures were approved by the Board of Aldermen with by 6-1 votes, with Ward 2 Alderman Justin Charboneau opposed. Ward 3 Alderman Jerry Miguel was absent from the Nov. 22 meeting. Board President Grant Mabie of Ward 3 chaired the meeting in Mayor Gregg Roby’s absence.
First readings of ordinances for the capital improvement fund budget expenditures and the sewer lateral fund budget expenditures were approved with 7-0 votes.
Final approval of the measures will be considered when the board meets at 7 p.m. Tuesday, Dec. 13, at the Government Center, 1 Detjen Drive.
Aldermen voted in December 2015 to adopt a 2016 budget that projected total revenues of $10,707,316 with anticipated expenditures of $11,394,409 — a deficit of $687,093.
With a projected beginning fund balance of $6,940,812 on Jan. 1, an ending fund balance of $6,253,719 initially was projected on Dec. 31, 2016. Current estimates project an ending fund balance of $7,643,479 on Dec. 31, 2016.
As proposed, general fund revenues for 2017 total $7,712,827 with anticipated expenditures of $8,236,913 — a deficit of $524,086. With an estimated beginning fund balance of $4,604,418, an ending fund balance of $4,080,332 is projected.
Aldermen last year adopted a fund-balance policy mandating the city maintain a general fund reserve of no less than 45 percent. The proposed 2017 budget projects a general fund reserve of 49.5 percent.
At the Nov. 9 Ways and Means Committee meeting, aldermen reduced the original deficit in the general fund by $52,489.
At that meeting, the board discussed the impact of the employee pay plan that was implemented this year at a total cost of roughly $151,000.
As originally proposed, the 2017 budget included a 2-percent matrix increase to the plan, which provided 18 employees with raises of over 7 percent this year, according to Miguel.
But aldermen reduced the general fund cost of the pay plan by approving Miguel’s motion to remove the proposed 2-percent matrix adjustment and add a 2-percent raise for employees not receiving a 5-percent step increase, except for new employees hired after July 1 and any employees with an unacceptable performance review.
As proposed for 2017, park and stormwater fund revenues total $1,738,587 with anticipated expenditures of $1,870,768 — a deficit of $132,181. With an estimated beginning balance of $756,552, an ending fund balance of $624,372 is anticipated.
As originally proposed by Simpson, the parks and stormwater budget projected a surplus of $12,422.
Capital projects proposed for the parks and stormwater fund include replacing/repairing the Community Center roof, $80,000, and renovating The Barn Restaurant, $30,000.
Aldermen voted Nov. 9 to reduce $55,000 in proposed improvements to Rayburn Park to $10,000 to remove unsafe playground equipment and add $80,000 for renovating the men’s and women’s locker rooms at the Community Center so they comply with the Americans with Disabilities Act.
As originally proposed, $25,000 was included to renovate the Community Center kitchen, but aldermen voted to remove the $25,000 for the kitchen and add $150,000 for HVAC repairs at the Community Center.
As proposed, the capital improvement fund anticipates revenues of $1,040,387 with projected expenditures of $1,118,200 — a deficit of $77,813. As originally proposed by Simpson, the parks and stormwater budget projected a surplus of $42,187.
Aldermen added $120,000 to the capital improvement budget to construct a sally port for the Police Department at City Hall and $50,000 for a future sidewalk replacement program.
As proposed, the sewer lateral fund projects total revenues of $138,200 with anticipated expenditures of $135,000 — a surplus of $3,200. With an estimated beginning balance of $263,729, an ending fund balance of $266,929 is projected.