City Council Reviewing Proposed Fiscal Year 2025 Budget

The City Council is currently reviewing the proposed budget for Fiscal Year 2025 (FY25), which begins July 1, 2024. In developing the annual budget, city staff rely upon a variety of planning documents, including the city's Strategic Plan, Comprehensive Plan, the five-year Capital Improvement Plan, Parks and Recreation Master Plan, and the new Watershed Management Plan. The budget is guided by the principles of maintaining high service levels, responding to the needs of residents and businesses, preserving long-term financial stability and providing for well-planned capital investment to preserve infrastructure and facilities.

General Fund
The city's General Fund relies heavily on Intergovernmental Revenues, including sales tax (44.5% of revenues) and utility licenses (36% of revenues). General Fund revenues are expected to remain flat from projected FY24 revenues. While property tax, utility tax and sales tax are all projected to increase 1%, building permits, apartment re-occupancy fees and escrow deductions are projected to decrease 16% or return to the normal 5-year average after three record year. General Fund expenditures are projected to decrease 0.76% compared to projected expenditures for FY24 to $17,752,440. This decrease is mainly as a result of the decrease in pension costs as a result of closing the Legacy Pension Plan and purchasing fewer patrol vehicles in FY25.

The city received approximately $3.89 million in Federal American Rescue Plan Act (ARPA) funds in FY22 and FY23. As these funds are one-time in nature, it is the recommendation of city staff to use these funds for one-time, capital investment. About $660,000 of these funds were used in FY23; about $2.1 million will be spent in FY24 and the rest will be spent in FY25.

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 $2.3 million in projected FY25 revenues. Proposed Capital Improvement Fund expenses are budgeted at $6,233,284, offsetting $3,721,360 in grant and ARPA funding.

Parks and Stormwater Fund
Creve Coeur residents approved a half-cent parks and stormwater sales tax in 2020. All revenue is dedicated to improving and maintaining local parks and stormwater infrastructure, and FY25 revenues are projected to be $3.36 million. Significant projects planned for FY25 include renovations to Venable Park.

Municipal Enterprise Fund
The Enterprise Fund includes operations and maintenance of the golf course and ice arena. Operating revenues are projected to increase by 0.37% to $1,493,624. The golf course has seen a substantial increase in usage since FY19 as residents and non-residents continue to seek outdoor activities. Operating expenses for the Enterprise Fund are anticipated to increase by 5.5% to $1,465,919 due largely to higher personnel costs.

Public Safety Fund
A countywide half-cent public safety sales tax was approved by voters in 2017. Cities in St. Louis County receive 5/8 of the revenues based on population. In addition, a 3% sales tax on recreational marijuana sales became effective October 1, 2023, and these revenues are also dedicated to public safety. Public Safety Fund revenues, budgeted at $1,578,924 in FY25, will help offset the increasing cost of providing high quality police services including maintaining required manpower, competitive salaries and benefits, equipment, technology, training, and operating expenses for the police station.

For questions or comments about the proposed FY25 Budget, please contact Mark Perkins, City Administrator, at 314-872-2515. Residents are encouraged to participate in the public hearing on Tuesday, May 28, 2024, at 7:00 p.m. at the Creve Coeur Government Center (300 N. New Ballas Road).