For the first time in at least 10 years, the city of Arnold is projected to spend less money than it brings in this fiscal year, City Administrator Bryan Richison said.
The 2023-2024 city budget shows Arnold bringing in $32,045,328 and spending $30,789,409, a $1,255,919 surplus, for this fiscal year, which began Sept. 1 and ends Aug. 31, 2024.
Richison said the reason for that projected surplus is the 1-cent sales tax increase voters approved in April to help fund the Arnold Police Department.
“We have run a deficit and (been cutting costs) every year since I have been here,” said Richison, who has worked for the city for 10 years.
The city started the 2023-2024 budget year with $4,391,210 in its general operating reserve funds and expects to end with $5,647,129 in its reserves, according to the budget City Council members approved in August.
Relief
When the sales tax to help fund the Police Department was approved, it increased the city’s overall sales tax from 1.25 cents per $1 to 2.25 cents per dollar. The measure also lowered residents’ property tax from 0.363 cents per $100 assessed valuation to 0.1815 cents per $100 assessed valuation.
The total sales tax people pay in the city ranges from 9.35 cents per $1 to 11.35 cents per $1 depending on where they shop because some stores are in special taxing districts.
Of that overall sales tax, 2.25-cent goes to the Arnold, another 4.225 cents is for the state, 1.625 cents goes to the county, 1/2 cent is for the Rock Community Fire Protection District, 1/2 cent is for Jefferson County 911 Dispatch and 1/4 cent goes to the Rock Township Ambulance District.
The sales tax for the Arnold Police Department is expected to generate about $7.5 million annually, according to the budget, and it cost about $7.2 million to operate the department for the 2022-2023 fiscal year.
However, Arnold expects to spend $9.4 million to operate the Police Department this fiscal year, an approximately $2 million increase.
Richison said the city will spend more this budget year on salaries for 55 police officers, who received 20 percent raises.
Finance Director Bill Lehmann said Arnold is projected to spend $7,881,561 on officers’ salaries and benefits in the upcoming fiscal year after paying $6,947,258 for officers’ salaries and benefits during the current fiscal year.
He said the city is projected to spend $934,303 more on those officers’ salaries and benefits in the 2023-2024 fiscal year. In addition, the department’s chief, major and three staff each received 5 percent raises, increasing the salary cost for those five employees by $27,260.
The city also will pay an additional $13,603 in salary costs after promoting an officer to corporal and a sergeant to lieutenant, Richison said.
Arnold also will lease three more Flock license plate-reading cameras for $20,000, and it will purchase six new police cruisers with cash instead of using a lease-purchase program.
Richison said the city has budgeted $373,500 to buy the new vehicles.
Arnold also purchased two motorcycles for $44,846.12 and a new speed trailer for $10,900.
The city is covering the additional costs to operate the Police Department by transferring $1,868,631 from the general operating budget to the police operating budget, according to council documents.
Richison said the transfer also covers $444,218.88 of other anticipated operating expenses.
He said Arnold should be able to continue subsidizing the Police Department operation costs with transfers from the general operating budget going forward.
“We knew there would be a subsidy (the Police Department). It (the general operating fund) is still way better off with the (new 1-cent sales) tax than without it.”
Capital improvements
No capital improvement projects were included in the 2023-2024 budget, but city staff members and officials have been asked to compile wish lists for improvements, and those will be reviewed this fall.
“There will be a series of discussions,” he said. “The staff and I will put together a big list of capital improvement projects that have come up in the past that we did not have the money to do. We will look at the list of projects, and. hopefully, the council can prioritize them. Then we can start putting a plan together for what budget years we can fund them. I don’t want to rush to spend the money.”
Some of the improvement projects under consideration include replacing the bowl slide at the Arnold Recreation Center’s outdoor pool for about $150,00, replacing the playground at Arnold City Park for an estimated $100,000 and constructing bathrooms at the Ozark Dog Park and the Pomme Creek Park for a combined $85,000.
Richison said he would prefer the city hold off any capital improvement projects during this fiscal year and start funding improvement during the next fiscal cycle.
“My recommendation would be if there are some grant projects and we need to apply before the next fiscal year, I think it would make sense to do that,” he said. “Otherwise, my preference would be the list we are working on would not be implemented until the next fiscal year.”
Employees
Police Department employees weren’t the only staff members who got pay increases this fiscal year. All the other city employees received 5 percent raises, according to the budget.
Finance Director Bill Lehmann said Arnold is projected to spend $14,064,796 on salaries and benefits for its approximately 130 full-time and 130 part-time employees during the 2023-2024 fiscal year, an $889,920 increase over the $13,174,876 spent on employee salaries and benefits last year.
Recreation center
The city is projected to transfer $299,029 from its general operating fund to the Arnold Recreation Center fund to cover its operating costs.
The rec center, at 1695 Missouri State Road, is projected to bring in $2,923,959 in revenue and spend $3,222,988 this fiscal year.
The rec center receives revenue from membership fees, as well as from a 1/4-cent sales tax voters approved in 2002.
Richison said the largest expenditure not covered by the rec center’s revenue stream is operating the indoor and outdoor pools.
On Sept. 7, council members voted 5-0 to pay $719,470 to Midwest Pool to continue to operate the indoor and outdoor pools and provide lifeguards this fiscal year. Councilmen EJ Fleischmann (Ward 1), Mark Hood (Ward 3) and Gary Plunk (Ward 4) were absent from the meeting.
Richison said that expenditure is about $200,000 more than it was the previous budget year.
“We expect we will continue to see significant increases from them each year,” Richison said of Midwest Pool Management. “The biggest thing they do is provide lifeguards, and like everyone, they are having trouble hiring people, so they have had to pay more. There is really no alternative because there is no way we could hire our own lifeguard staff.”
Stormwater
The largest transfer from Arnold’s general operating fund is $3,359,335 to the stormwater fund.
The Storm Water Division is projected to bring in $641,500 in revenue and spend $4,000,835 this fiscal year.
Richison said the bulk of the division’s budgeted expenditures are for two stormwater improvement projects the city was unable to start during the 2022-2023 fiscal year and will be this fiscal year.
Those stormwater improvements are for the Little Muddy Creek area and Christ Drive and are expected to cost a little more than $3 million combined, Richison said.
The Little Muddy Creak area is north of Hwy. 141 and west of I-55, and Public Works Director Judy Wagner said the improvements to that area will be focused along Walnut, Arlene, Roy, Ray, Polly, Jacqueline, Redwood and Sonny drives, as well as to a ditch between the Fox Chase Apartments and Redwood Drive.
Christ Drive runs between Starling Airport Road and Tenbrook Road in the north part of the city.
“Those are one-time projects, and that has really distorted the budget,” Richison said. “We normally don’t spend anywhere near that kind of money out of this fund. They are good projects, and I am glad we are doing them.”