Crestwood’s assets up, liabilities down, but sales-tax revenue sluggish in 2008


Crestwood aldermen gave unanimous approval last week to a financial analysis presented by the city’s independent auditors that shows, among other things, increased assets, decreased liabilities and sluggish sales-tax revenues during fiscal 2008.

The Board of Aldermen heard the presentation of the report June 23. Auditing firm Schmersahl Treloar and Co. gave the city an “unqualified opinion” — meaning it considers Crestwood’s financial statements, ending Dec. 31, 2008, accurate and properly prepared.

Crestwood’s total expenditures for fiscal 2008 were up 21 percent from 2007, $12,143,773 to $14,714,023.

Public safety — police, municipal court and fire — accounted for 38 percent of that amount, followed by public works, which accounted for 15 percent.

The city’s total revenues increased by 5 percent, from $13,275,868 to $13,995,287. Sales, property and utility taxes accounted for 75 percent of the revenue, followed by grants, which accounted for 8 percent.

However, total tax revenue fell slightly from last year because of a 10-percent decrease in sales-tax revenue, which dropped from $7,180,263 to $6,428,360.

Sales-tax revenue still accounted for the highest percentage of the city’s revenue in fiscal 2008, as it did in 2007, but that amount decreased from 54 percent to 45 percent.

The city’s total assets increased slightly — 1 percent — over fiscal 2007, from $21,290,807 to $21,546,152. Although total assets didn’t move much, current and non-current asset levels went in opposite directions from the previous year:

• Current and other assets decreased by a total of 13 percent, from $7,619,339 to $6,629,470. Crestwood had $4,625,028 in cash and investments, down from $5,324,885.

• Non-current assets increased by 9 percent, from $13,671,468 to $14,916,682. Restricted cash and investments were listed as $877,022, down from $913,575.

Total liabilities fell 23 percent, from $8,823,174 in fiscal 2007 to $6,796,765 last year:

• Under that category, the city’s long-term liabilities decreased 28 percent, from $6,001,497 to $4,297,051. The report cites the city’s paying down of its long-term debt as the reason for the decrease. It specifically mentions the city’s increased payments on an Annual Appropriation Note from Royal Banks of Missouri, which it obtained in 2006 to restructure its debt and financed partly through Proposition S, a voter-approved tax-rate increase.

• Current liabilities decreased by 11 percent, from $2,821,677 to $2,499,714.

The city’s total net assets — total assets minus total liabilities — increased by 18 percent over fiscal 2007, from $12,467,633 to $14,749,387. Of that total, amounts restricted for certain areas are:

• Capital projects: $1,143,166, a 43-percent decrease from $2,014,284 in 2007.

• Debt service: $2,414,863, a 28-percent decrease from $3,333,636.

• Non-expendable trust: $346,652, a 2-percent increase from $340,766.

• Unrestricted: $10,844,706, a 60 percent increase from $6,778,947.

Other highlights in the auditors’ report include:

• “The general fund balance for 2008 was $3,811,003; the general fund balance at the end of 2007 was $3,393,532. Of the entire fund balance for the general fund, $1,555,000 is reserved for subsequent year expenditures/commitments.”

• “The general fund revenues exceed general fund expenditures by $345,796 excluding the transfers of $71,675. This is a decrease in revenues over expenditures in 2007 largely due to a required unscheduled $525,000 payment on the Annual Appropriation — Proposition ‘S’ — note made in order to maintain the note’s non-taxable status.”

• “The capital improvement fund realized a decrease in fund balance of $871,118 for a total fund balance of $1,143,166. Due to the city’s financial conditions, many non-essential capital improvements were delayed. Expenditures in this fund exceeded revenues by $715,513, excluding transfers of $155,605. This is largely due to the fact that Grant Road was originally scheduled to be reconstructed in 2007 but was actually competed in 2008.

• “The park and stormwater fund balance is ($238,736). This is a decrease from the prior year’s fund balance of ($48,497). Revenues exceeded total expenditures by $739,581. This fund is responsible for the principal and interest payments on the Certificates of Participation Series 2001 debt service — aquatic center debt — which amounted to $1,016,844 and net transfers of funds in the amount of $929,820.

Including these transfers, the park and stormwater fund had a net change of the previous fund balance deficit of ($190,239).”

The 2008 audit is available as a PDF file at

under “Finance.”