The City Council reviewed the draft budget for Fiscal Year 2020 (FY20) on May 13, 2019. The Public Hearing for the budget was June 10, 2019, and the budget was adopted on June 24, 2019. The fiscal budget year begins on July 1 each year. In developing the annual budget, city staff rely upon a variety of planning documents, including the Comprehensive Plan 2030, the five-year Capital Improvement Plan and the FY2018-2020 Strategic Plan. The budget is guided by the principles of maintaining high service levels, responsiveness to the needs of residents and businesses, preserving long-term financial stability and providing for well-planned capital investment to preserve infrastructure and facilities.
The city’s General Fund relies heavily on Intergovernmental Revenues, including sales tax (42% of revenues) and utility licenses (38% of revenues), and these revenues sources have essentially been flat for several years. FY20 General Fund revenues are projected to increase 1.05% from FY19, due to the 1% commercial utility tax rate increase and returning the residential electric utility rate to its previous level of 7%. Operating expenditures are projected to increase 2.26% from FY19 to $15,576,843.
During FY19, a Finance Task Force consisting of City Council and Finance Committee members evaluated city expenditures, looking for areas to cut cost while maintaining the same high level of service. Recommendations for FY20 were implemented into the proposed budget, including reducing vacation buy-back for employees and increasing required employee contribution to the pension plan.
Capital Improvement Fund
The proposed budget is based on the five-year Capital Improvement Plan adopted by the City Council on April 8. The half-cent capital improvement sales tax is the major funding source, accounting for approximately $2 million in projected FY20 revenues. The city has been successful in obtaining over $983,600 in grant funding for FY20 capital projects. Proposed Capital Improvement Fund expenses include $3,097,703 for projects.
The Enterprise Fund includes operations and maintenance of the golf course and ice arena. Operating revenues are projected to increase by 0.64% to $1,067,420, due to an increase in concession and green fees during FY20. Operating expenses for the Enterprise Fund are anticipated to increase by 2.3% to $1,101,369, due to the minimum wage increase during FY19.
POlice Building fund
In 2016 the citizens of Creve Coeur approved Proposition P which authorized the levying of a property tax to provide funding for the construction of a new facility for the police department and associated improvements at the current government center. This fund will be responsible for accounting for all revenues and expenditures associated with the construction of the police facility and related improvements of the government center. This project is scheduled to be completed during FY20.
Debt Service Fund
This project was funded through the issuance of General Obligation Bonds in April 2017. These Bonds will be repaid with interest over a twenty-year period with funding provided by an annual levy of Real and Personal Property tax. This fund will account for all revenues and expenditures (interest and principal) related to repayment of the City's outstanding debt. The debt service expenditures, including interest and principal expenses, are estimated to be approximately $713,006 in FY20.
Public safety sales tax fund
A countywide half-cent public safety sales tax was approved by voters on April 4, 2017. Cities in St. Louis County receive 5/8 of the revenues based on population. The projected amount to be received by the City of Creve Coeur in FY20 is $876,000. These revenues will help offset the increasing cost of providing high quality police services including maintaining required manpower, competitive salaries and benefits, equipment, technology, training, and maintenance and operating expenses for the new police station. Expenses for FY20 are estimated to be $355,210.
Fiscal year 2020 budget
Fiscal Year 2020 Budget Document – (To search document by page number, please download PDF file.)