Not only will Crestwood have a balanced budget in 2007, it will also have over $165,000 in surplus funds to begin rebuilding its cash reserves.
The Board of Aldermen will hold a public hearing on the budget Dec. 12 before finally approving the over-$13-million budget, which takes effect Jan. 1. The board is scheduled to meet a 7 p.m. at 1 Detjen Drive.
In his budget message, City Administrator Frank L. Myers said the budget takes into account the city's five-year goal of becoming a "financially sustainable and responsible city government" of adopting a balanced budget, funding a cash reserve totaling 25 percent of the General Fund balance, increasing sales tax revenues, having the financial resources to support defined services and service levels, increase resources and revenues through partnerships and grants and increase cost-effective delivery of city services.
The proposed budget forecasts $13,721,685 in total revenues against $13,554,332 in total expenditures. The budget includes a 2-percent wage increase for all city employees that totals about $94,000.
It also includes recommendations for the additions of one full-time residential code enforcement officer position, one full-time administrative intern position and one summer-term public services management intern position. It also recommends one of two vacant police officer positions be filled.
The General Fund, which includes day-to-day operations of Public Safety (police and fire) services, Public Works and General Administration, is funded through sales, property and utility taxes, business licenses and Municipal Court revenues and shows $8,999,902 in revenues and $8,860,144 in expenditures. It also includes a $165,364 proposed budget surplus to be used to rebuild the city's cash reserves.
The Capital Improvement fund, funded by a half-cent sales tax on all commercial sales in the city, includes funds for completing improvement projects and funding vehicle and heavy machinery equipment costs, shows $2,536,282 in revenues against $2,534,410 in expenditures. The total revenues are 61 percent over 2006's budgeted amount, largely because of a $1-million grant for the reconstruction of Grant Road, while the total expenditures are a 64-percent increase over 2006's, again because of the reconstruction of Grant Road.
The Park and Stormwater fund, funded by a half-cent sales tax and user fees from the Aquatic Center, Community Center and Recreation Programs and fees for recreation programs, is used to fund park and stormwater operations and pay the debt service on the Aquatic Center. It is forecast to produce total revenues of $2,115,810 against $2,185,383 in total expenditures.
Myers also said in his budget message that, for nearly a decade, the city has faced severe financial pressures because of an over-reliance on sales tax revenues to fund services, increased retail competition in the South County region, declining sales tax revenues, a pattern of the cost of government exceeding available resources and the city's use of its cash reserves to fund operations.
He also said that even though "the city has turned the corner, there are still a number of fiscal challenges." Among those are facing a decline in sales taxes, which accounts for 51 percent of the city's total budget, curing the Park and Stormwater Fund's reliance on the General Fund to supplement its operations, and rebuilding the city's cash balances.
