City Council - Regular Meetings

6/5/2023 Exhibit A FY2024 Proposed Budget Public Hearing Eric Peterson, Director of Finance & Administration 1 FY2024 Budget Materials www.webstergrovesmo.gov/budget 2 1  6/5/2023 FY2024 PROPOSED BUDGET BOTTOM LINE NUMBERS 3 2023 2023 FY2024 FY24 OVER AMENDED BUDGET PROPOSED (UNDER) FY23 BUDGET ESTIMATE BUDGET BUDGET REVENUE $28,152,282.00 $29,087,907.00 $27,686,062.00 ($466,220.00) EXPENDITURES $30,949,103.00 $29,506,452.00 $26,748,094.00 ($4,201,009.00) NET GRAND ($2,796,821.00) ($418,545.00) $937,968.00 TOTALS FY2024 ALL FUNDS 4 2  6/5/2023 FY24 OVER 2023 FY2024 2023 BUDGET (UNDER) AMENDED PROPOSED ESTIMATE FY23 BUDGET BUDGET BUDGET REVENUE $18,602,495.00 $19,204,779.69 $19,327,300.00 $724,805.00 EXPENDITURES $19,084,709.00 $19,041,416.00 $19,724,801.00 $640,092.00 NET GRAND ($482,214.00) $163,363.69 ($397,501.00) TOTALS FY2024 GENERAL FUND 5 ADOPTED AMENDMENTS TO DATE 6 3  6/5/2023 1. GF-1: Moved cost of Comprehensive Plan Development services to the Special Initiatives Fund (-$150,000) 2. GF-2: Move unused ARP Funds to General Fund (+$1,404,000) 3. LCARF-1: Funded the Large Capital Asset Replacement Fund (-$300,000) ADOPTED AMENDMENTS – GENERAL FUND 7 1. SIF-1: Created the Special Initiatives Fund (+$950,000) 2. SIF-2: Continued Investment in Sustainability (-100,000) 3. SIF-3: Continued Investment in Business Development (-50,000) ADOPTED AMENDMENTS – SPECIAL INITIATIVES FUND 8 4  6/5/2023 1. SIF-4: Reserved funds for potential flood property buyouts (-$500,000) 2. SIF-5: Continued Investment in DEI (-50,000) ADOPTED AMENDMENTS – SPECIAL INITIATIVES FUND 9 1. CIP-1: Moved purchase of replacement police pistols from FY26 to FY24 (-$25,000) ADOPTED AMENDMENTS – CAPITAL IMPROVEMENT FUND 10 5  6/5/2023 (SAVINGS TO BUDGET) / AMENDMENT (DEFICIT)/SURPLUS REVENUE or COST Proposed Budget (Deficit)/Surplus $ (379,501.00) Comprehensive Plan Funding $(150,000.00) $(229,501.00) Pension Ratio Adjustment $(36,076.00) $(193,425.00) Proposed $1,500 Stipend $94,573.00 $(287,998.00) Street Improvement Fund Usage $(193,239.00) $(94,759.00) Park Improvement Fund Usage $ (290,954.00) $196,195.00 Interest Income Reestimate $5,500.00 $201,695.00 Legal Services Savings $(10,200.00) $211,895.00 All Adopted (Deficit)/Surplus $ 201,695.00 EFFECT OF AMENDMENTS ON GENERAL FUND SURPLUS/(DEFICIT) 11 June 6 – Public Hearing & Budget Amendments June 20 – Adoption of Budget June 28 (approximately) – Publication of Adopted Budget REMAINING BUDGET PROCESS 12 6  Exhibit B Nakazono, Katie From: Dave Buck <dave@buckstl.com> Sent: Wednesday, June 7, 2023 10:45 AM To: Laura W. Arnold; Pam Bliss; Alexander, Karen; Richardson, Sarah; David Franklin; Emerson Smith; Peoples, Marie; Peterson, Eric; Nakazono, Katie; njbatty@aol.com; Nakazono, Katie; Starkey, Jenny; Perry, Mara; Davis, Scott; Rehg, Todd; Curtis, Dale; Perks, Greg; Ellis, Brett; Bainter, Gary Cc: Jeanne Kirkton; paul dribin; John Eppers; Sebastian Bellomo; Clark Hotaling; Jaime Mowers; Kevin Murphy Subject: Dave Buck's Public Hearing Comments on the FY 24 Budget Proposal at the June 6, 2023, City Council Regular Meeting Caution: This is an External Message ‐ Please be cautious when opening links or attachments (Before sharing my comments below, may I please say “Thank YOU” to both Ka e and Laura for providing me with 30 seconds addi onal me last night, as I was not finished yet. My bad and poor prac cing & prepara on on my part ahead of the mee ng). “First, I wish more residents could have a ended, observed and listened to your budge ng process as I think they would gain a be er understanding and apprecia on of how our city operates and how you think, ask ques ons, and work together as a team. Maybe next year! Here are my three quick comments: 1. Each department budget showed how it was aligned with your new strategic plan. But, currently, this plan is only a dra , preliminarily adopted by Council on February 7, four months ago. It is not yet officially approved and posted on the City’s web site. I am just curious if you will be making one last review of this plan for any final changes or improvements before officially adop ng it and, if so, might this then necessitate each department to relook its strategic alignment with this final plan. 2. The Missouri Cons tu on requires that the state pass a balanced budget every year (“expenditures must not exceed revenues”). I believe that the Charter Review Advisory Board should consider and recommend the same requirement for Webster Groves, specifically targe ng the General Fund, which is by far the biggest budget represen ng 70% of All Funds and it is uniquely the City’s annual opera ng budget. 1  However, this balancing of the budget should be accomplished with the discipline of NO LONGER touching and taking from our General Fund Reserve Balance, currently standing at $10,148,000, down from $12,000,000 as recently as 2019. As former Council member and strategic plan co‐ facilitator, Bud Bellomo, has con nuously analyzed and pointed out, the City has a poor track record and habit of dipping into and decreasing this rainy‐ day emergency fund over the years to so‐call “balance” the General Fund budget and that has to stop, in my opinion. Because as current Council member, Emerson Smith, has also enlightened me, robbing from the Reserve Balance is NOT REALLY, ACCURATELY or FINANCIALLY balancing the budget, is it? 3. Finally, your proposed FY24 General Fund budget is showing a loss coming into this mee ng. Stated differently, this budget is not yet balanced. A er a 40‐year business career that included managing many annual Profit & Loss Statements, I believe that there is both a financial side to budge ng and a psychological side. As such, I am of the very strong opinion that Council & Staff will be much be er off bi ng the bullet and taking your lumps NOW to get to a FY24 General Fund balanced budget – versus kicking the proverbial can down the road and hoping, stressing and wai ng for Eric’s trend lines to get be er. Ge ng to a balanced budget – whether at home, business or city government – can be both a financial and psychological WIN‐WIN for City Council, Staff and the community. If balancing the budget is to be achieved through cost cu ng versus raising revenues, my own view is to get it over with NOW and get it behind you. The community will adapt. And not all plans have to be permanent cuts, but rather delayed un l a later me, when you can afford it – because it is much easier and happier to add revenue back in later! And as Eric has already shared, it does not take much of an increase in sales tax revenue, for example, to significantly change and improve the overall financial picture and projec ons. 2  Plus, and very importantly, maybe, just maybe, certain people in our town will finally wake up, accept reality and get off Marie’s and Eric’s backs for good!!!! Now that would be a big WIN‐WIN for Webster!!!! Thank YOU! PEACE. 3