FOR IMMEDIATE RELEASE

June 2, 2005                                                              Contact:  Mark Perkins

                                                                                                     (314) 872-2511

 

 

FY 06 Budget Hearing June 13 at 7 p.m.

 

CREVE COEUR –Currently reviewing the proposed budget for FY 06 (beginning July 1), the City Council will host a public hearing during the June 13 City Council meeting at 7 p.m.

            Considerably improved over last year, this year’s general fund budget reflects a strong commitment to maintaining the city's high service levels. Last year’s budget deficit for the general fund with transfers exceeded $1.6 million; this year the proposed deficit for the general fund is less than $300,000. This improvement has resulted largely from an increase in revenues from the city's gross receipts tax on utilities along with the elimination of several staff positions.

            Although significant progress has been made in reducing the deficit, further work is needed. For that reason the city is proposing to slightly increase the current property tax. It is estimated that the increased property taxes for a homeowner with a $350,000 home will be approximately $14 annually and will generate $130,000 in additional income. On a total tax bill of approximately $4,600 the city's total portion will continue to be less than $61.

            Even with the additional revenue, more action is required to fully eliminate the general fund deficit. The city is currently reviewing a number of options to generate additional revenues or reduce expenditures in order to achieve a balanced budget in the future. As always, the city's Economic Development Commission is working to help expand the city's tax base to offset the need for increased taxes or service reductions. 

            Please visit the city's Web site at www.creve-coeur.org to view the proposed FY 2006 budget and other related documents. Residents are encouraged to contact Mayor Dielmann, City Council Members, or the city administrator with comments.

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