Musings from Brian J. Noggle: Creve Coeur Handles Its Budget Surplus

Creve Coeur Handles Its Budget Surplus

What do you do if you're a local government with a surplus? Turn it into a deficit! But Creve Coeur, Missouri, is rather blatant about it:

The Creve Coeur City Council is considering the proposed budget that begins July 1 and ends June 30, 2006.

The council is expected to vote on the proposed budget at its June 27 meeting.

The proposed budget for all funds shows revenues at $16.8 million and expenditures at $16 million. The apparent $800,000 surplus actually will be routed to long-term personnel funds, leaving the city with a $300,000 deficit in the general fund.

Uh oh! Deficit! You know what that means! Time to raise taxes:

The proposed budget includes a modest raise in what residents pay the city through their personal property taxes. Perkins said residents currently pay 7 cents per $100 assessed valuation. He said the city has not determined the amount of the increase but expects it will be between 8 and 9 cents.

Perkins said although an exact amount has not been determined because information from the county assessor's office has not arrived, the city is looking at personal property tax numbers that would translate to about $13 a year more for a home valued at $350,000. The money would generate about $140,000 more for the city.

Other taxes in the city have gone up in recent years. The city's utility tax, after decades of being at less than 5 percent, increased to 6 percent last year and will rise to 7 percent July 1.

Some businesses in the Olive Boulevard Transportation Development District increased their sales tax by one-half percent. The money will be used to pay for roadway and other improvements in the district. The city will not receive money from that increase.

Perkins said the city has begun looking into whether it should consider increasing its tax on business licenses. He said the matter will be reviewed by the city's economic development and finance committees, but the issue is not part of the proposed budget for 2006.

Personal property taxes--that is, cars and things that apartment dwellers pay, too
Sales taxes
Business license costs

Creve Coeur is on its way to becoming the perfect municipal government. An efficient tax raising and expending machine.

- posted by Brian J. @ 10:05 AM