The city of Eureka will soon be debt-free.
Officials plan to pay off $6,318,378 of debt during the 2021-2022 fiscal year, which begins July 1 and runs through June 30, 2022.
The budget was unanimously approved by the Board of Aldermen on June 1.
“We’re going to pay off all city debt, so you are going to financially improve the city dramatically,” Eureka Mayor Sean Flower said. “That will also allow us to save a lot of money on interest and debt expense payments.”
The budget anticipates $22,115,206 in spending during the year and $42,995,993 in revenue, finance director Barbara Flint said.
More than half the revenue is coming from the sale of the water and sewer systems to Missouri American Water.
The company is paying the city $28 million to turn over its control of the systems.
The sale was approved by voters on Aug. 4 with 2,289 voting in favor of selling the systems to 1,127 opposed.
To eliminate the debt, which was incurred by building The Timbers recreation center as well as installing a water softener, Eureka will spend $7,199,304 more during this coming budget cycle as compared with the soon-to-end cycle, finance director Barbara Flint said.
Flint said $880,926 more was budgeted to cover the rising cost of employees’ salaries and benefits.
She said the city will spend $4,563,500 on employees’ salaries and benefits. She said 117 city employees will receive a 3 percent raise, with police officers given raises based on a step schedule of experience and training.
Eureka has 27 officers, and it pays $2,324,000 to cover the department’s salaries and benefits.
Prop E
The city has budgeted to spend $1,450,000 in money it has received from the Proposition E sales tax.
Voters approved the 1/2-cent sales tax increase in April 2018 that increased the overall sales tax rate from 8.613 to 9.113 cents per $1 spent.
Money collected from the tax are to be used for public safety, which includes building a new Police Station, replace the crumbling Allenton Bridge and devise and implement short-term and long-term flood mitigation strategies.
The budget calls for $500,000 to be spent on the Allenton Bridge project, $500,000 for flood mitigation measures and $450,000 for the Police Station portion of the Michael A. Wiegand Justice Center, a government building that will house City Hall, the municipal courts system and the Police Department.
The budget includes spending $750,000 on the Justice Center this year, but only the Police Station section will be paid for through Prop E funds. The other $300,000 of the building will be paid for with capital improvement funds.
“(Eliminating the city’s debt) allows us to move forward with Prop E projects,” Flower said.
Street projects
The city plans to spend $585,000 on street projects over the next 12 months.
The lion’s share of that expenditure ($500,000) will cover the cost of a citywide street rehabilitation project and another $55,000 will be used to paint stripes on the streets, parking lots and trails.
The city also will pay $30,000 to extend the North Central Avenue sidewalk to East North Street.
Flower said he is looking forward to getting some projects completed this year.
“Last year, the city was able to cut our spending significantly,” he said. “We’ve bolstered almost every fund we have across the board.”
Flint said all budgeted projects will be covered by revenue Eureka receives this year, and the city will not have to dip into reserve funds to balance its budget.
Flint said the city will begin this budget year with $7,384,234 in its general fund and $1,051,000 in its reserve fund.
If the budget plays out as planned, the city will end the budget year next June with $9,077,782 in its general fund and $1,251,150 in reserves.
“I am confident that the city can meet the budgetary expectations outlined in the budget document,” Flint said.
Police, Parks expenditures
The Police Department plans to buy $243,067 worth of vehicles and vehicle equipment, according to the budget. The department plans to purchase three Dodge Durangos at $46,218 each, which includes equipment and installation.
The department also plans to purchase a Dodge Charger for $37,548, also including the cost of equipping it with police equipment.
Also, four radar units will be purchased for $2,250 each.
The department will also buy $38,000 worth of weapons, safety vests and other accessories.
The city’s Parks and Recreation Department has $72,500 budgeted for capital improvement projects, including a new heating, ventilation and air conditioning system for the community center, a stand-behind lawn mower, an all-terrain vehicle and pool deck furniture and equipment.