Flat General Fund Revenues Are Focus Of Kirkwood’s 2007/2008 Budget Presentation

Kirkwood, Missouri – Thursday, March 1, 2007 – Thursday night’s City Council public hearing for the City of Kirkwood’s upcoming budget focused on the revenue challenges facing the main fund of the city, the General Fund. Finance Director John Adams presented the proposed budget at tonight’s City Council meeting as part of the public hearing. Citing less than 2.6% growth in the General Fund over the past five years, Adams noted that revenues in this fund weren’t even keeping place with the Consumer Price Index, which has been rising steadily at 2.78% each year. “We’re finding it harder and harder to provide the same services we did a year ago when our revenues are held flat,” Adams noted during his comments. “We continue to look at every expenditure and have made very significant reductions in staffing and services over the past several years,” Adams stated. “Still, I am here tonight to report to the Council that we are stretched thin and likely cannot continue providing existing levels of city services in coming years without additional revenues for the General Fund.”

The General Fund is the city’s main operating fund and pays for providing police and fire protection, EMS (ambulance) services, and most public works services, including snow removal and basic street maintenance. The General Fund also pays for the salaries and benefits of the majority of city personnel and the many different types of insurance that the city must carry, from workers’ compensation to liability, to benefit costs which are shared by city employees.

“The General Fund receives nearly half of its income from tax revenues,” Adams stated. “Unfortunately, sales taxes have been relatively flat for the past five years, which echoes regional and national trends.”

Steve Powell, chair of the Citizens Finance Committee, presented the final budget recommendation to City Council.  For years, Kirkwood has benefited from the time and talents that eight citizens contribute each year in reviewing the city’s operating and five-year capital budgets. Each year, following ongoing dialogue and review with city staff, the Citizens Finance Committee prepares a written review of its findings for the City Council.

“Over the last three years the city has made a major effort to reshape its delivery of services to Kirkwood citizens to become more cost effective,” said Powell. “These measures have resulted in pay freezes, hiring freezes, departmental restructuring, delayed funding of capital projects and a substantial reduction of city staff. This Committee applauds the efforts of all those involved in making our city more efficient and accountable.

The Mayor closed the public hearing by praising the work and dedication of the Citizens Finance Committee, noting that Kirkwood was unique in involving its citizens so closely in the budget planning process. The Council gave unanimous first reading approval to the budget. The second and final reading will occur at the March 15, 2007, City Council meeting. The city’s budget year begins April 1.

# # # # #

Back To News Releases