City Council - Regular Meetings

Please note, residents can share comments in-person, virtually via Zoom using the “Raise Hand” option, during the Regular Meeting, via email or U.S. mail. Written comments will not be read aloud at the meetings. All speakers will be allowed three minutes. Instructions on listening through phone or computer to the meetings are available at www.webstergrovesmo.gov/568/Virtual-Meeting-Instructions. CITY OF WEBSTER GROVES COUNCIL WORK SESSION AGENDA DATE: TUESDAY – MAY 20, 2025 6:30 P.M. LOCATION – CITY HALL #4 E. LOCKWOOD AVENUE IN-PERSON AND VIRTUALLY 1. BOARD AND COMMISSION INTERVIEWS 2. REVIEW REGULAR AGENDA 3. MAYOR/COUNCIL/CITY MANAGER ISSUES/MEETING UPDATES 4. TOPIC: • Front Facing Garages 5. APPOINTMENTS TO BOARDS/COMMISSIONS 6. EXECUTIVE (CLOSED SESSION) RE: 1. ATTORNEY-CLIENT PRIVILEGED COMMUNICATIONS [MO. STATUTE 610.021 (1)] 2. REAL ESTATE [MO. STATUTE 610.021 (2)] 3. PERSONNEL [MO. STATUTE 610.021 (3)] 4. NEGOTIATED CONTRACT [MO. STATUTE 610.021 (12)] 7. ADJOURNMENT  CITY OF WEBSTER GROVES CITY COUNCIL MEETING DATE: TUESDAY – MAY 20, 2025 7:30 P.M. LOCATION–CITY HALL-#4 E. LOCKWOOD IN-PERSON AND VIRTUALLY Please note, residents can share comments in-person, virtually via Zoom, using the “Raise Hand” option, via email or U.S. mail. Written comments will not be read aloud at the meetings. All speakers will be allowed three minutes. Instructions on listening through phone/computer to meetings available at: www.webstergrovesmo.gov/568/Virtual-Meeting-Instructions Welcome to the regular meeting of the City Council. We welcome questions, ideas and comments from persons in attendance. Members of the audience may, however, comment only when recognized by the Mayor or Mayor ProTem if the Mayor is absent. We ask that comments be limited to three minutes in order to complete the agenda within a reasonable time. Comments concerning items not on the agenda should be made during the Remarks of Visitors section of the agenda, near the beginning of the meeting. I. ROLL CALL II. PROCLAMATION - National Public Works Week III. REMARKS FROM THE COMMUNITY AND VISITORS IV. NEW BUSINESS - MAYOR, COUNCILMEMBERS, CITY ATTORNEY, CITY MANAGER V. NEW BUSINESS 1. Council Vote Re: Flying Pride Flag 2. Resolution #2025-25 – Designating the City of Webster Groves as a Blue Shield City as Offered by the State of Missouri and to Commit to Public Safety and Reducing Violent Crime Within Webster Groves 3. Budget Amendments for FY-2026  VI. APPROVAL OF CONSENT AGENDA 1. Approval of Minutes – May 6, 2025 VII. APPOINTMENTS TO BOARDS AND COMMISSIONS VIII. EXECUTIVE (CLOSED SESSION) RE: 1. ATTORNEY-CLIENT PRIVILEGED COMMUNICATIONS [MO. STATUTE 610.021 (1)] 2. REAL ESTATE [MO. STATUTE 610.021 (2)] 3. PERSONNEL [MO. STATUTE 610.021 (3)] 4. NEGOTIATED CONTRACT [MO. STATUTE 610.021 (12)] IX. ADJOURNMENT Individuals who require an accommodation (sign language, interpreter, listening devices, etc.) to participate in the meeting should contact the City Clerk at 314-963- 5318 (fax number 314-963-7561) or Relay Missouri at 1-800-735-2966 (TDD) at least two working days prior to the meeting. NEXT REGULAR MEETING DATE: TUESDAY – JUNE 3, 2025 PLEASE NOTE: AUGUST 5, 2025 COUNCIL MEETING IS CANCELED  RESOLUTION 2025-25 DESIGNATING THE CITY OF WEBSTER GROVES AS A BLUE SHIELD CITY AS OFFERED BY THE STATE OF MISSOURI AND TO COMMIT TO PUBLIC SAFETY AND REDUCING VIOLENT CRIME WITHIN WEBSTER GROVES WHEREAS, the State of Missouri through the Governor’s Safer Missouri Initiative has offered Missouri counties, towns, and cities an opportunity to be designated as Blue Shield cities [MO Executive Order 25-03]; and WHEREAS, the City of Webster Groves recognizes law enforcement is essential for the safety and security of its residents, the community, and its visitors, and wishes to be designated a Blue Shield City; and WHEREAS, the City of Webster Groves believes engagement between the community and law enforcement plays a critical role in reducing crime and is committed to public safety, and the reduction of violent crime. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Webster Groves, Missouri, that the City of Webster Groves is committed to the designation of the Missouri Blue Shield city and developing community partnerships related to public safety and crime reduction within Webster Groves. Passed and approved on this _______ day of ________, 2025. __________________________________________ Mayor ATTEST: ______________________________________ City Clerk  CITY OF WEBSTER GROVES May 6, 2025 The City Council met this date in a regular session, in-person in the Council Chambers, and via Zoom, at 7:41 p.m. Present at Roll Call: Mayor Laura Arnold Councilmember Pam Bliss Councilmember David Franklin Councilmember Emerson Smith Councilmember Karen D. Alexander Councilmember Emily Hixson Shepherd Councilmember Jamie Hasemeier A quorum was present. Also present: Dr Marie Peoples, City Manager Neil Bruntrager, City Attorney Katie Nakazono, City Clerk RECOGNITIONS & PROCLAMATIONS • May was proclaimed Asian American and Pacific Islander Heritage Month. • The week of May 4 – 10 was designated Local Government Week. REVIEW OF VOTES Mayor Arnold announced the April 8, 2025 election results [Exhibit 1]. REMARKS FROM THE COMMUNITYAND VISITORS Lynette Andre, 60 N Bompart Ave, addressed pedestrian safety concerns during the Community Days Carnival. Lea Ann Coates, 427 Clark, [Exhibit 2]. Terri Williams, [Exhibit 3]. Lisa Johnson, Colonial Village, [Exhibit 4]. NEW BUSINESS - MAYOR, COUNCILMEMBERS, CITY ATTORNEY, CITY MANAGER No New Business. UNFINISHED BUSINESS BILL #9280 THIRD READING On motion of Councilmember Hasemeier, seconded by Councilmember Bliss, BILL #9280 – AN ORDINANCE AUTHORIZING THE CITY MANAGER TO RENEW A TEN-YEAR SUBSCRIPTION WITH THE ST. LOUIS COUNTY EMERGENCY COMMUNICATIONS COMMISSION (ECC) FOR PORTABLE, MOBILE AND BASE STATION RADIOS, having been introduced and read twice on April 15, 2025, was taken up by its title and read a third time and placed upon its passage to become Ordinance #9280. May 06, 2025 Mayor Arnold called for the vote on Bill #9280. AYES: BLISS, FRANKLIN, SMITH, ALEXANDER, HIXSON SHEPHERD, HASEMEIER, ARNOLD NOES: NONE Mayor Arnold stated the Bill was approved. NEW BUSINESS NEW REVENUE STREAM DISCUSSION Ms. Shannon Creighton of Gilmore & Bell PC presented Council with revenue options [Exhibit 5]. She noted for disclosure that she is also a resident of Webster Groves. She limited her discussion to the 4 best options: Economic Development Sales Tax, City-Wide Transportation Development District (TDDs), Fire Protection Sales Tax, and a Real Estate/Personal Property Tax. Council inquired about what qualified for Federal grant matching on economic development. Ms. Creighton said that it’s anything that would attract people to Webster Groves, including stormwater projects, smart technology, Community Days, Police/Fire overtime, etc. She also clarified for Council that these revenue streams are different than sales taxes that are broken up like the Where Does Your Money Go dollar poster display [Exhibit 5, slide 37]. The City would realize 100% of these streams. In response to Council questions, Ms. Creighton said TDDs can be set up as special districts within Webster, city-wide, or multi-city for larger scaled projects such as the recently completed Eager Rd & Highway 40/Hanley Rd development that included St. Louis County, Bi-State, and the cities of Brentwood and Maplewood. TDD funding sources are designated at the creation of the TDD and would apply to any taxable sales within the district. TDDs are often tied to economic development. Since TDDs are separate political subdivisions, there is an elected board to distribute the monies. Typically, TDDs are not residential, so qualified voters are usually business/property owners within the district. There could also be an administrator to assist with filings and reporting, and sometimes multi-jurisdiction TDDs could misalign with Council wishes. Director of Finance & Workforce Services Gregory Donovan continued the revenue conversation [Exhibit 5]. He presented Council with options that focus on Webster Groves budget management while avoiding using reserves. Council asked Mr. Donovan to explain to voters why taxes have not dropped since 2004. He said that while valuations have increased, rates have decreased, but tax revenue is still allowed to increase. And, the 1980 Missouri Constitution Hancock Amendment prevents tax windfalls, thusly capped at 5% or the CIP, whichever is less. Additionally, the amendment gives voters some control over property taxes by requiring them to vote for increases or reset the tax rate. The 2025 CIP is set at 2.9%. New building in teardown scenarios are an exception and the property owner cannot build new/bigger and realize a benefit. Council asked for clarification of potential tax increases in property tax funded accounts (General, Street Improvement, Pension, and Debt). Mr. Donovan referenced the Where Does Your Money Go dollar slide [Exhibit 5, slide 37]) and indicated that each receiving entity sets their own rates 2 May 06, 2025 for disbursement. The total tax rate per $100.00 is $6.8792. Our portion is currently around .6 or $0.61 of the $6.8792. If the City asks voters for an increase, it would double the General and Street Improvement funds, and add 50% to the Pension Fund. The Debt Fund would not increase. This would mean a median property tax increase of about $200.00 per home in Webster Groves. And because of the Hancock Amendment, rates would be forced back down in a couple of years. Council asked, should they go forward and ask voters for a tax increase, how would they educate voters in order to make an informed decision. Dr. Peoples suggested that this increase is tied directly to municipal goods and services—public works, safety, and other resident services. Mayor Arnold summarized Council’s position as not prepared for a First and Second Reading of the upcoming agenda item, Bill 9281. Council agreed with her statement that they were not ready. Dr. Peoples asked if Council had an idea of a timeline when they would like to revisit this topic. Mayor Arnold suggested maybe June 17th after the scheduled Reserve discussion. Council is aware of election filing deadlines and costs related to timing as well as the goal to relieve pressure on the General Fund. BILL #9281 – FIRST & SECOND READING Council did not address this Bill related to proposed tax increases. (See above New Revenue Discussion.) Budget Amendments for FY2026 Exhibit 6 through Exhibit 12. CONSENT AGENDA Councilmember Franklin made a motion, seconded by Councilmember Bliss, to approve the Consent Agenda. Prior to the vote, Councilmember Hixson Shepherd asked for clarification on Resolution #2025- 19, calling for 2 consulting companies for the Service Center. Public Works Director Sinan Alpaslan stated Melo Price & Associates LLP is the contractor of record, but that David Mason & Associates is a sub-contractor for Melo Price. David Mason & Associates will be working on the civil concept narrative (architecture) aspect of the project. Mayor Arnold called for the vote on the Consent Agenda. AYES: FRANKLIN, SMITH, ALEXANDER, HIXSON SHEPHERD, HASEMEIER, ARNOLD, BLISS NOES: NONE Mayor Arnold stated that the Consent Agenda was approved. The following Consent Agenda was approved: • Approval of Minutes - April 15, 2025 • Resolution #2025-19 - Authorizing the City Manager to Enter into an Agreement for Consulting Services Related to the Service Center Addition • Resolution #2025-20 - Authorizing the City Manager to Enter into a Contract with Tyler Technologies, Inc., to Migrate the City’s “On-Premise” Version of Tyler New World, Executime, and Associated Modules, and for Yearly Hosting of Tyler Content Manager for the Finance Department, and Amending the Budget for FY-2025 3 May 06, 2025 • Resolution #2025-21 - Authorizing the City Manager to Purchase a Boom Truck for the Public Works Department, and Amending the Fiscal Year 2025 Budget • Resolution #2025-22 - Authorizing the City Manager to Purchase a Dump Truck for the Public Works Department, and Amending the Fiscal Year 2025 Budget • Resolution #2025-23 - Authorizing the City Manager to Purchase Three Vehicles for the Police Department, and Amending the Budget for Fiscal Year 2025 • Resolution #2025-24 - Amending Resolution #2025-02 Authorizing the City Manager to Enter into a Contract for the Demolition of the Structure(s) at 834 N. Forest and 838 E. Pacific APPOINTMENTS TO BOARDS AND COMMISSIONS No New Appointments. Executive (Closed) Session Councilmember Bliss called for a motion, which was seconded by Councilmember Hixson Shepherd, to go into Executive Closed Session per Personnel [MO Statute 610.021 (3)], and Negotiated Contract [MO Statute 610.021 (12)]. Mayor Arnold called for the vote to go into Executive (Closed) Session. AYES: SMITH, ALEXANDER, HIXSON SHEPHERD, HASEMEIR, ARNOLD, BLISS, FRANKLIN NOES: NONE Mayor Arnold stated that the Council would go into Executive (Closed) Session. Adjournment There being no further business to come before the City Council, the meeting was adjourned at 10:33 p.m. on motion of the Mayor, duly seconded. PASSED AND APPROVED this ____ day May of 2025. ________________________ Mayor ______________ City Clerk 4 Exhibit 1 Exhibit 2 Exhibit 2 Exhibit 3 Mayor Arnold, Council Members Hasameyer, Alexander, Franklin, Bliss, Smith, and Hixson Shepherd, my name is Terri Williams and I served as Mayor of Webster Groves from 1994-1998. In the words of Eleanor Roosevelt, I am asking you “To do the thing which you think you cannot do” and that is to come out from behind the dias, stand up, and speak out against the juggernaut of fascism that is destroying our democracy at every level of government. All of you ran for office to make a difference. All of you swore an oath to uphold the Constitution. Representative Ann Wagner and Senators Hawley and Schmitt have apparently forgotten the oath they also took, as they work with Trump to establish a nationwide authoritarian agenda. Exhibit 3 Our government has been gutted by DOGE; the repercussions will affect local communities for decades. What are you doing to defend democracy against this onslaught? Writing letters to politicians ARE important but it is not enough. On April 2, Mayor Arnold, you and the Council sent a letter to our federal office holders expressing concern about FEMA and the Department of Transportation. In the time you submitted that letter, FEMA has ended the BRIC grant program. Billions of dollars in emergency FEMA funds have been stalled. What is the game plan when disaster funding is no longer available to assist homeowners WHEN, not IF, a major weather event hits? Exhibit 3 Trump’s TARIFF TAXES are in effect and will immensely impact the housing market, individual purchasing power, and business viability. What is the strategy to make sure that Webster’s small businesses do not go under due to the whims of a wannabe dictator? RFK Jr., has upended decades of vaccine and other scientific research that directly affects the Webster Groves community - especially children and older residents. Trump wants to eliminate the Narcan program for first responders. What is in place to protect the health of all of your constituents? On April 28, Trump issued an executive order that authorizes military support for local law enforcement operations. It threatens to prosecute state and local officials who seek to regulate police departments’ use of their powers or who work to integrate police forces. Authoritarian leaders decide what constitutes a crime…and due process be damned. Exhibit 3 When Webster police officers, under orders from DC, detain international students or arrest those of us who participate in peaceful demonstrations, what will be your position? Our U.S. Representatives and Senators are not doing enough…OR they are complicit. We need our LOCAL officials to stand up and speak out NOW. You have a duty and the platform to help stop the decimation of our democracy and protect the rule of law. Mayors and council members can and do make a big difference regarding what happens at the federal level. I KNOW the power you have because along with my city council, and mayors and councils across the country, we were able to stop not only shipments of nuclear waste through our communities to Yucca Mountain in Nevada, we ended shipments all together. Exhibit 3 As John Lewis said “Never, ever be afraid to make some noise and get in good trouble, necessary trouble”. How? Write a resolution that stands firm on safeguarding democracy and share it with other muni’s - like we did with the nuclear waste resolution; form coalitions with other cities about federal funding concerns - like some universities and law firms are pushing back; demonstrate with your fellow citizens; don’t wait for others to do something…COURAGE IS CONTAGIOUS. It’s time for each of you to stand up and speak out. Exhibit 4 Lisa Johnson City Council Remarks May 6, 2025 It is good to be here on a day honoring those who served in local government. I wish to talk about the importance of decentralization. Our current national government is threatening us from too much centralized power being wielded by the Executive branch. Starting in January I have been handing out pocket Constitutions to people I meet at gatherings and classes. I am eager for us to be informed of the lessons of the Constitution and originally did this to remind us all of the Amendments – what they are, and that it’s not all about only the Second Amendment. But in rereading the Constitution I relearned that the first article is about the Legislative branch. The second article is the Executive branch, to carry out the laws made in Congress and the Senate. The third article is about the Judicial branch, still holding. The current President is threatening democracy through overreaching and misusing powers of the Executive, trying to take over the other two co-equal branches of our government. I am speaking out because it is WE who are the base of true democratic power: local government, which is closest to the individual. “We the People.” My protest signs now say “We the People” and “Solidarity.” It is not about democratic or republican parties anymore; it’s about US, the people, and whether this country can retain its democracy given the current rise of authoritarianism. There are so many ways to resist. I find my areas to be around “othering.” I partner a child Holocaust survivor, who speaks to her experience in Nazi Germany. When she talks, I am chilled to think of the parallels to today. I have been standing out on Lockwood Avenue with the weekly #BLM vigil since George Floyd’s murder. This May 25 will mark 5 years since his murder. Resistance. How can the City Council help maximize participation in resisting what is wrong? Individuals are standing up and speaking out. Please pass this message up the chain in government so we can make change and say Enough is Enough. Exhibit 5 REVENUE OPTIONS City of Webster Groves May 2025 Exhibit 5 ECONOMIC DEVELOPMENT SALES TAX Exhibit 5 Economic Development Sales Tax (RSMo §67.1305) RATE PURPOSE REQUIRED ACTION MAXIMUM RATE OF 1/2% ECONOMIC DEVELOPMENT SIMPLE MAJORITY PURPOSES VOTER APPROVAL AND CREATION OF AN EDST BOARD AND APPROVAL OF AN EDST PLAN 3 Exhibit 5 At least 20% of the revenue must be used for projects directly related to long-term economic development preparation, including the following: • Acquisition of land • Installation of Infrastructure – water, wastewater, streets, sidewalks, stormwater management • Providing matching dollars for state or federal grants WHAT IS AN Remaining revenue may be used for, but is not limited to, the following: ECONOMIC • Marketing DEVELOPMENT • Grant and low-interest loan programs for job training, equipment acquisition, site development and infrastructure PURPOSE? • Job training programs • Legal and accounting expenses directly associated with the economic development planning and preparation process • Any initiative that would attract people, businesses and/or investment, leading to economic growth (e.g., smart technology, holiday displays, landscaping and other City beautification projects) Not more than 25% of the revenue may be used for administrative purposes, including staff and facility costs 4 Exhibit 5 EDST Plan and EDST Board BEFORE SPENDING FUNDS, CITY MUST: • PREPARE AN EDST PLAN AND CREATE A 5-MEMBER EDST BOARD • 3 members appointed by the City • 1 member appointed by the School District • 1 member appointed by the County EDST BOARD • Advisory Body Only • Hold Public Hearing on EDST Plan, Economic Development Projects and Designations of Economic Development Areas • Make Recommendations to City Council • Provide Annual Report to City Council and the State 5 Exhibit 5 Voters Approve City Council Economic Creates EDST Development Board Sales Tax EDST Board holds City Staff Prepares public hearing on EDST Plan EDST Plan EDST Board makes City Council recommendation approves EDST to City Council Plan 6 Exhibit 5 CITY-WIDE TRANSPORTATION DEVELOPMENT DISTRICT Exhibit 5 City-Wide Transportation Development District (RSMo §238.200 et seq.) SEPARATE POLITICAL LIMITED TO SALES TAX, PROPERTY ONGOING ANNUAL SUBDIVISION AND BOARD TRANSPORTATION TAX, SPECIAL COMPLIANCE OF DIRECTORS RELATED PROJECTS ASSESSMENTS, TOLLS 8 Exhibit 5 • Created through the submission of a petition with the Circuit Court HOW IS THE • Number of procedural steps including an election of the qualified voters within the TDD TDD FORMED? (i.e., the registered voters of the City) • Formation can take up to a year ______________ ______________________________________ • The Board of Directors is elected by the qualified voters within the TDD (i.e., the HOW IS THE registered voters of the City) OR TDD GOVERNED? • If the formation petition was filed by two or more “local transportation authorities” (LTA), the Board of Directors will consist of (1) the presiding officer of each LTA and one person chosen by the governing body of each LTA (2 to 3 LTAs) or (2) the presiding officer of each LTA (4 or more LTAS) 9 Exhibit 5 FIRE PROTECTION SALES TAX Exhibit 5 Fire Protection Sales Tax (RSMo §321.242) RATE PURPOSE REQUIRED ACTION SOLEY FOR OPERATION OF THE SIMPLE MAJORITY CURRENTLY IMPOSED CITY’S FIRE DEPARTMENT VOTER APPROVAL AT THE RATE OF 0.25% - OPTION TO INCREASE TO 0.50% 11 Exhibit 5 REAL ESTATE/ PERSONAL PROPERTY TAX Exhibit 5 Real Estate/Personal Property Taxes • City currently imposes real and personal property taxes for the following purposes:  General municipal  Streets  Pensions • Currently at maximum rate but could ask the voters for an increase • Separate proposition required for each purpose • Simple majority voter approval required 13 Exhibit 5 ELECTION DATES AND FILING DEADLINES Exhibit 5 Exhibit 5 SHANNON W. CREIGHTON SHAREHOLDER GILMORE & BELL, P.C. (314) 444-4111 SCREIGHTON@GILMOREBELL.COM Exhibit 5 Revenue Conversation Gregory Donovan Director of Finance and Workforce Services Exhibit 5 REVENUE SOURCES Exhibit 5 HOW’S THE CITY FUNDED? • GENERAL: Wide variety of sources such as Sales Taxes, Property Taxes, Fees, Utility Taxes, etc. • STREET IMPROVEMENT: Property Taxes • DEBT: Property Taxes • PENSION (100% Police/Fire 40% Non-Uniform): Property Taxes • CAPITAL IMPROVEMENT: Sales Taxes • STORM WATER IMPROVEMENT: Sales Taxes • PARK IMPROVEMENT: Sales Taxes Exhibit 5 GENERAL FUND REVENUE (BY SOURCE) OTHER INCOME PROPERTY TAX RECREATION FEES 3% 13% 10% CHARGE FOR SERVICES INTERGOVERNMENTAL REVENUE 4% 9% INSPECTION FEES & PERMITS 5% PROPERTY TAX $2,987,054 INTERGOVERNMENTAL $1,998,000 LICENSES REVENUE 3% SALES TAX $8,725,000 UTILITY TAX $3,320,000 LICENSES $794,850 INSPECTION FEES & PERMITS $1,048,000 FINES $347,000 CHARGE FOR SERVICES $845,700 UTILITY TAX RECREATION FEES $2,338,000 14% OTHER INCOME $735,250 OTHER FINANCING SOURCES $186,353 (USES) SALES TAX TOTAL $23,325,207.00 37% Exhibit 5 CURRENT STATE (GENERAL FUND) Exhibit 5 GENERAL FUND FIVE-YEAR OUTLOOK (Current Best Case) CLOSE THE GAP? • Revenue Growth: 3.02% • Expense Growth: 3.47% • 2031 Difference: ($1,994,795) • “Doable in the short-term but not Sustainable” Exhibit 5 GENERAL FUND FIVE-YEAR OUTLOOK (Current Worst Case) CLOSE THE GAP? • Revenue Growth: 3.02% • Expense Growth: 5.35% • 2031 Difference: ($4,736,373) • “Unstainable” • What changed? Average Personnel cost increase of 5% and Contractual Services cost increase of 6% per annum. Exhibit 5 GENERAL FUND EXPENDITURES BY CLASSIFICATION 24 Exhibit 5 WILL IT HAPPEN? GREEN = REVENUE RED = EXPENSES Deficit Spend twice since 2018 Exhibit 5 REVENUE OPTIONS Exhibit 5 REVENUE OPTIONS (SALES TAX) • SALES TAX CITY CITY BASE RATE CITY BASE SALES • ECONOMIC DEVELOPMENT: ½ Cent = $1,460,000 TAX • FIRE SALES TAX INCREASE: ¼ Cent = $730,000 WEBSTER GROVES 1.50% 9.24% • BENEFITS of INCREASE Brentwood 2.00% 9.74% • Relieves some pressure within General Fund Glendale 1.50% 9.24% Kirkwood 1.50% 9.24% • Encourage business growth and development Maplewood 1.75% 9.49% • May relieve some pressure in other Funds Richmond 1.75% 9.49% Heights • DRAWBACKS Rock Hill 1.50% 9.24% • Limited to specific uses Shrewsbury 1.50% 9.24% • Pushes base rate ahead of surrounding Cities • “That’s It” – Base Rate Max  REVENUE OPTIONS Exhibit 5 (PROPERTY TAX) FY2026 FY2025 RESIDENTIAL ONLY (CY25 PROJECTED (CY24 RATES) RATES) GENERAL* $1,078,373 $1,122,525 STREET IMPROVEMENT $696,589 $724,964 PENSION $1,018,091 $1,060,163 DEBT $1,346,291 $1,566,858 *Residential Property Taxes comprise 4.8% of General Revenue Exhibit 5 REVENUE OPTIONS (PROPERTY TAX) RATE CHANGE 2025 2004 2017 2024 FROM 2004 TO (NON-BINDING) 2025 GENERAL 0.274 0.193 0.161 0.144 -47% STREET 0.177 0.139 0.104 0.093 -47% IMPROVEMENT PENSION 0.142 0.200 0.152 0.136 -4% DEBT 0.506 0.241 0.201 0.201 -60% CITY OF WEBSTER GROVES PROPERTY TAX RATES (per $100 assessed valuation) Exhibit 5 REVENUE OPTIONS (PROPERTY TAX) • HANCOCK AMENDMENT (1980) • What is it?: MO Constitutional Amendment affecting property tax income • Why do we have it?: • To prevent property tax “windfalls” when property valuations increase • Allow residents greater control over tax rates • How does it work?: • Limits year over year growth of Property Tax income to the taxing entity • Limit: 5% or CPI, whichever is less (2025: 2.9%) • Mechanism: Reduces Property Tax Levy (rate) Exhibit 5 REVENUE OPTIONS (PROPERTY TAX) • CURRENT WEBSTER GROVES PROPERTY TAX RATE (PER $100 IN ASSESSED VALUATION) • $6.8792 • UPSHOT • Assessed Valuation = 19% of Home Value • Easy Math: Home Value of $1,000,000 = $190,000 in Assessed Valuation • $190,000/$100 = $1,900 • $1,900 X $6.8792 = $13,070.48 Exhibit 5 WHERE DOES IT GO? SAINT LOUIS COUNTY: 5.60% WEBSTER GROVES SCHOOL SPECIAL SCHOOL COMMUNITY COLLEGE: 3.73% DISTRICT: 56.49% DISTRICT: 14.05% ZOO/MUSEUM DISTRICT: 3.39% WEBSTER LIBRARY: 2.80% CITY OF WEBSTER MSD, ROADS, PRODUCTIVE LIVING BOARD, STATE GROVES: 9.20% OF MISSOURI: 4.74% Exhibit 5 WHERE DOES IT GO? • CITY OF WEBSTER GROVES (9.2% of Tax Bill) • $0.618 (2024 Rate) • GENERAL: $0.161 (26%) • STREET IMPROVEMENT: $0.104 (16.8%) • PENSION: $0.152 (24.6%) • DEBT: $0.201 (32.5%) • WEBSTER GROVES MEDIAN HOME VALUE: $371,000 • Median Property Tax: $4,849.15 • GENERAL: $113.49 • STREET IMPROVEMENT: $73.31 • PENSION: $107.14 • DEBT: $141.68 • TOTAL: $435.63 Exhibit 5 PROPERTY TAX INCREASE? MATCH 2025 MEDIAN TAX 2004 2017 PERSONAL INCREASE TO INCREASE PROPERTY MATCH GENERAL 0.274 0.193 0.28 0.136 $95.87 STREET 0.177 0.139 0.181 0.088 $62.03 IMPROVEMENT PENSION 0.142 0.200 0.200 0.064 $45.11 DEBT 0.506 0.241 0.201 0.000 $0.00 TOTAL 1.099 0.773 0.862 0.288 $203.01 Exhibit 5 PROPERTY TAX INCREASE? FY2026 MATCH PERSONAL FY2025 INCREASE (PROJECTED) PROPERTY GENERAL $1,078,373 $1,122,525 $2,182,688 $1,060,163 STREET $696,589 $724,964 $1,410,952 $685,988 IMPROVEMENT PENSION $1,018,091 $1,060,163 $1,559,063 $498,900 DEBT $1,346,291 $1,566,858 $1,566,858 N/A Exhibit 5 PROPERTY TAX INCREASE? Exhibit 5 QUESTIONS? Exhibit 5 FY2025 Q3 Budget Review AND FY2026 Proposed Budget and Recommendations Gregory Donovan, Director of Finance & Workforce Services Exhibit 5 FY2026 Budget Materials www.webstergrovesmo.gov/budget 39 Exhibit 5 AGENDA FOR DISCUSSION • FY25 Budget Overview • Review Bottom-line Numbers of Proposed FY26 Budget • Budget Amendments Discussion 40 Exhibit 5 Budget Calendar • April 15 – Present City Manager’s Proposed Budget • May 6 – Presentation of Business Districts Annual Reports, Discussion of all Board & Commissions Annual Reports/Budget Requests, Overall Budget Review, Budget Amendments • June 3 - Budget Amendments, Public Hearing on Budget. • June 17 - Budget Amendments in regular meeting, Budget Adoption. 41 Exhibit 5 FY2025 3RD QUARTER BUDGET PERFORMANCE 42  Exhibit 5 FY2025 ALL FUNDS BUDGET ACTUAL YTD % YTD THIS POINT FY24 REVENUE $45,440,519 $38,238,265 84% $23,275,294 (77%) EXPENSES $43,650,940 $24,046,837 55% $19,352,030 (64%) Data as of March 31, 2025 43  Exhibit 5 INVESTMENT REPORT HIGHLIGHTS Total Investments Total Liquidity Ratio and Cash Investments 53% / 47% $43,967,661.24 $12,871,317.21 (Liquid / Illiquid) Yield Spread Weighted Avg Yield 1.41% - 5.12% 4.13% Data as of March 31, 2025 44  FY2026 PROPOSED Exhibit 5 BUDGET ASSUMPTIONS • Sales Tax Income: 0% Increase • Real Estate Tax Revenue: 2.9% Increase • Insurance Premiums and Related Costs: 10%+ Increase • Interest Income: Flat to slight decline Not Included • Police CBA cost increases  Exhibit 5 FY2026 ALL FUNDS* 2025 AMENDED 2025 BUDGET 2026 PROPOSED 2026 OVER BUDGET ESTIMATES BUDGET (UNDER) 2025 REVENUE $45,440,519 $45,000,416 $31,897,322 ($13,543,197) EXPENSES $43,650,940 $42,882,509 $39,498,127 ($4,152,813) NET GRAND TOTAL $1,789,579 $2,117,907 ($7,600,805)** *Prop W (Destination WG!) Revenue and Expenses in FY2025. There will be significant Prop W expenses in FY26 but no Prop W Revenue. **2.78MM is Prop W and $1.9MM is Stormwater Master Plan Spending 46  Exhibit 5 FY2026 GENERAL FUND 2025 AMENDED 2025 BUDGET 2026 PROPOSED 2026 OVER BUDGET ESTIMATES BUDGET (UNDER) 2025 REVENUE $22,517,523 $22,508,481* $23,325,207 $807,684 EXPENSES $22,921,698 $21,659,204 $24,511,810 $1,590,112 NET GRAND TOTAL ($404,175)** $849,277 ($1,186,603) *Includes $500,000 KVC Building Permit Income **Includes Council Amendments for Stipends, Concrete Finishers and IT Analyst 47 Exhibit 5 RESERVE SPENDING • $186,353 from Grant and Prop W Funds to General Fund • $1.18MM from General Fund’s Cash Reserve • Stormwater Fund Cash Reserve 48 Exhibit 5 Exhibit 5 Exhibit 5 BUDGET AMENDMENTS Exhibit 6 YES: ARNOLD, BLISS, SMITH ALEXANDER, HIXSON SHEPHERD, HASEMEIER NO: FRANKLIN PASS 6:1 Exhibit 7 YES: ARNOLD, SMITH, HISXON SHEPHERD HASEMEIER NO: BLISS, FRANKLIN, ALEXANDER PASS 4:3 Exhibit 8 YES: ARNOLD, BLISS, FRANKLIN, SMITH, ALEXANDER, HIXSON SHEPHERD, HASEMEIER NO: -- PASS BUDGET AMENDMENT FORM Author: Councilmember Bliss Arnold Second: ----------- Increase Increase Amount: ----------- Account Code: ---------- Decrease Decrease Amo�nt $55 000 ...;,;....;_....;;....L...;;.....;;_�------- Account Code: 30-04-68-901 --- For multiple line-item changes, attach a seoarate sheet or detail them on back Delay the purchase of $55,000 in the Park Improvement Fund for a tractor/mower until FY27. Though the PIF has a current cash balance of $2m+, with annual income of $1.3m the fund is projecting FY26 expenses at $1.57m resulting in a deficit for FY26 of approximately $250,000. Describe the intended outcome of In the Chart of Accounts: the motion: Remove $55,000 from Park Improvement Fund 30-04-68-901 in FY26. FOR FINANCE USE ONLY Finance Amendment#: CC-PIF-01 Checked: VOTE YES NO Arnold Adopted: Bliss Franklin Finance Smith Entered: Alexander Hixson-Shepherd Hasemeier Confirmed: Exhibit 9 INTRODUCED BY COUNCILMEMBER SMITH, SECONDED BY COUNCILMEMBER HIXSON SHEPHERD YES: ARNOLD, BLISS, FRANKLIN, SMITH, ALEXANDER, HIXSON SHEPHERD, HASEMEIER NO: -- PASS Exhibit 10 YES: -- NO: -- WITHDRAWN EXHIBIT 11 INTRODUCED BY MAYOR ARNOLD, SEDCONDED BY COUNCILMEMBER BLISS YES: ARNOLD, BLISS, FRANKLIN, SMITH ALEXANDER, HIXSON SHEPHERD, HASEMEIER NO: -- PASS EXHIBIT 12 YES: ARNOLD, BLISS, SMITH, ALEXANDER, HIXSON SHEPHERD, HASEMEIER NO: FRANKLIN PASS 6:1