City Administrator Bryan Richison said Arnold is in good financial shape despite its newly adopted budget that projects the city spending $3.4 million more than it brings in during the 2024-2025 fiscal year, which began Sept. 1 and runs through Aug. 31, 2025.
Richison said the bulk of the deficit spending is due to a $2.6 million stormwater project being carried over into this fiscal year because it was not started during the last fiscal year.
He said the city will use reserve funds from its general operating budget to cover the deficit spending, adding that the city has more of those reserve funds because in April 2023 voters approved a 1-cent public safety sales tax to help fund the Police Department.
“The big thing is I feel we are in much more control now because of the law enforcement tax,” Richison said. “I think if we run deficits, it is more of a choice. Before, it often wasn’t. We were cutting and cutting and just couldn’t cut enough. Now, we are in a better place and can do more things.
“I think we will continue to have positive growth with our sales taxes, and that will benefit us going into the future.”
Arnold City Council members voted unanimously Aug. 29 to approve the budget.
According to the new budget, the city is projected to collect $32,158,476 in revenue and spend $35,619,734 this fiscal year.
The city will start the fiscal year with $7,183,283 in it general operating fund balance and anticipates receiving $19,673,526 in revenue for its general operating, while only spending $17,120,920 on general operating expenses.
Arnold will transfer $6,013,864 from its general operating budget to subsidize expenditures for the Police Department, Arnold Recreation Center and stormwater fund.
After that transfer, the city is projected to complete the fiscal year with $3,722,025 in its general operating reserve funds, according to the budget.
The stormwater fund will receive $2,925,715 in funds from the general operating budget with most of that money to be used for the Little Muddy Creek watershed stormwater project.
The Little Muddy Creek area is north of Hwy. 141 and west of I-55.
Public Works Director Judy Wagner said improvements will be made 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.
She said the project was not started during the last fiscal year because almost 80 easement agreements were needed, and as of Sept. 5, the city had completed about two-thirds of those agreements.
“We are continuing to examine the project and figure out how to hopefully get it completed within the next year,” Wagner said. “It is a very complex project. There are a number of easements, and we also have to get utilities relocated.”
Richison said the city will use American Rescue Plan Act funds to cover the cost of the stormwater project.
“(The ARPA funds) are basically still sitting in the general funds cash balance, and that is the way to use it, running a deficit,” he said. “If we would have gotten that project done, the transfer wouldn’t have been needed, and it would have been a smaller deficit.”
Police Department
Arnold is projected to receive $8,254,824 in revenue from the 1-cent public safety sales tax, and it is projected to spend $10,756,665 to operate its Police Department.
The budget shows the city is transferring $2,501,841 from its general operating budget to subsidize the Police Department.
“I will make that trade any day,” Richison said of using general operating funds to fund the Police Department. “The expectation was never (that the tax) would cover all the police expenses. “It is still a huge help to have that extra revenue. It allows us to do so much more. The wish list on the general fund would be a whole lot shorter with a lot more no’s had it not been for the police tax.”
Arnold’s 57 police officers will receive a 10 percent raise this year after receiving a 20 percent raise in the first year of a two-year contract approved in 2023.
Bill Lehmann, Arnold’s director of finance, said the city is projected to spend $9,708,983 on officers’ salaries and benefits during the 2024-2025 fiscal year. He said Arnold spent $8,598,486 on officers’ salaries and benefits during the last fiscal year.
Arnold also is projected to spend $423,506 on salaries for the police chief, major and three staff members this fiscal after those employees received a 3 percent raise. Last year, the city spent $386,882 on salaries for those five employees, Lehmann said.
Employees
The city’s other employees will receive a 3 percent raise, according to the budget.
In addition to the Police Department employees, the city will have about 130 full-time employees and approximately 124 part-time and seasonal employees this fiscal year, about the same number as last fiscal year, Lehman said.
He said the city is projected to spend $16,198,054 on those approximately 254 employees’ salaries and benefits this fiscal year, after spending $14,531,292 on salaries and benefits last fiscal year.
Capital improvements
Two of the most expensive capital improvement projects budgeted for this fiscal year are for facilities at city parks.
Arnold will spend an estimated $100,000 to install a new playground at Ferd B. Lang Park, 1820 Old Lemay Ferry Road, and about $100,000 to install bathrooms at the Arnold Farmers Market, which is near the entrance of Arnold City Park off Jeffco Boulevard near the Meramec River.
Parks and Recreation Department Director Dave Crutchley said the Ferd B. Lang playground is 24 years old.
He said the new playground will be about twice the size of the current playground.
Crutchley said he hopes to present City Council members with a contract for the playground in December and see it installed by next spring.
“Location-wise, we are not sure it will fit where it is currently at,” he said. “We may end up moving it. We are looking at different areas.”
Crutchley said it may take up to nine months for a bathroom to be installed at the Farmers Market after a contract is approved. The bathroom would replace portable toilets.
“We have received some complaints about the portable toilets, which are harder to keep clean,” Richison said. “Some people have had some bad experiences down there with them.”
Recreation Center
The city will spend $287,279 more to subsidize the Arnold Recreation Center, 1695 Missouri State Road, this fiscal year than last fiscal year. Arnold will move $586,308 from its general operating fund to the rec center fund this fiscal year after transferring $299,029 last fiscal year.
The city is projected to spend $3,911,095 to operate the rec center, which is expected to bring in $3,324,787 in revenue.
“It is not great, but it is not terrible,” Richison said of the amount being transferred.
Most of the money being moved to the rec center budget will pay for new cardio equipment and shower renovations at the rec center and outdoor pool.
Crutchley said the current cardio equipment, such as treadmills, stationary bicycles and rowing machines, are 10 years old.
He said the equipment typically is replaced every four to five years.
Crutchley said he hopes the new equipment, which will cost an estimated $260,000, will be installed in March.
“The fitness machines are really important for people to have that variety and availability,” Richison said. “I think it is something that makes having a membership worth it for a lot of people.”
The shower area renovations are expected to cost about $75,000.
“Over the last couple of years, we have made improvements to every area of the locker rooms and changing rooms,” Richison said. “(The shower renovations are) finishing off what we have been working on to provide a better experience for people using the changing rooms and locker rooms.”