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The total budget for the City of St. Louis for fiscal year 1997 is $594 million. The budget for the City is an Annual Operating Plan serving as the guidebook for the fiscal year. It sets policy, identifies new initiatives and allocates the resources necessary to maintain City services and meet the objectives of the fiscal year. The fiscal year for the City of St. Louis runs from July 1 to June 30. The budget is formulated on a cash basis, thus revenues and expenditures are recognized when they are realized. In accordance with state law, the budget must be balanced when adopted.
GENERAL FUND REVENUES
The general operating budget for FY97 is supported by revenues of $338.4 million. General fund revenues are provided by a variety of sources, including employment-basedtaxes, property taxes, gross receipt taxes on utilities, intergovernmental revenues from theState of Missouri, and various business license fees and departmental receipts.
Employment-based taxes, including the earnings tax, payroll tax, and graduatedbusiness license fee, comprise the largest portion of general fund revenues. Revenues fromemployment-based taxes are forecast to increase in total by 2.2% over the revised FY96forecast. The earnings tax is the largest component of this group. The earnings tax,exhibiting the fastest growth rate at 2.5%, is expected to generate nearly $107 million inFY97. Revenue from the graduated business license fee is expected to remain at the $7.5million level of the last two years.
The sales tax is expected to generate nearly $48 million, an increase of 2.5% over thecurrent year. The gross receipts on utilities, commonly known as the franchise tax, isexpected to show an increase of 3.7%. The increase forcasted for franchise taxes resultsfrom expected higher revenues for telephone services, due to the expiration of a revenuesharing agreement imposed by the PSC, as well as a return to more seasonal weatherpatterns.
The City expects to receive about $20 million in intergovernmental revenues this year,compared to nearly $24 in FY96. Revenues associated with the hospitality and entertainment industry are expected to increase this year. These gross receipts taxes, including amusement, restaurant, hotel andparking lot taxes, are forecast to maintain a growth rate of between 2 and 3 percent, afteradjusting for the major league work stoppage, which is consistent with the recentlyestablished pattern.
BUDGET ALLOCATION
The FY97 general fund operating budget of $338.4 million represents a 3.3% increaseover the FY96 budget of $327.5 million. The budget continues to emphasize the prioritiesof public safety and neighborhood stabilization, themes established in last year s budget. Inkeeping with these priorities, the FY97 budget allocates additional funds for areas such asrecreation programming, Police and EMS services, abandoned building demolition and streetand bridge repair projects in the Capital Fund.
Funding for the operation of City recreation centers is increased again this year. Thebudget includes approximately $500,000 in additional general revenues to supplement the$1.0 million expanded recreation initiative approved in FY96. Together these funds willprovide for expanded recreation opportunities for City residents and provide forimprovements to existing recreation facilities.
The budget for the Police Department at $101.9 million remains the largestdepartment consuming 30% of general revenues. Police Department operations continue tobenefit from the existence of a number of federal hiring grants. Combined with general fundsupport the total authorized number of uniformed Police officers will reach 1,699, anincrease of 24 over FY96. This will bring the total increase in officers to nearly 150 over thepast three years. The FY97 Police Department budget contains funding for the second yearof a three-year pay plan that provides for higher salary increases compared to earlier plans. The budget also includes $0.5 million for implementation of certain recommendations madeby a Human Resources Committee appointed by the Board of Police Commissioners. Withincreases in overtime and the addition of 24 new commissioned officers, the public shouldsee the benefit from an increased police presence in City neighborhoods and more officerson the street for longer periods of time.
Funding for services offered by the Department of Health and Hospitals is increasedby 10% over FY96. The City will continue to contract with Regional Medical Center foroperations of its Ambulatory Care Centers and will provide $1.0 million to supplementpatient care with funds received from the rental of the clinics to Regional. Fundsappropriated for the medical care of state General Relief recipients is also increased by $1.0million. These funds are paid to the City by the State for this purpose and the City contractswith Regional Medical Center and other providers for the actual patient services. The budgetprovides additional funds for the restructuring of the EMS dispatching operation, shiftingfrom a 24-hour to 8-hour shift schedule and adds funds for outfitting Fire Departmentpersonnel with equipment necessary to continue their role in the First Responder program.
In an attempt to address the issue of abandoned buildings, the FY97 budget includes$0.5 million which will be used exclusively to demolish vacant buildings currently ownedby the Land Reutilization Authority, (LRA), the city agency which holds title to a largeportion of the stock of abandoned buildings. These funds will supplement the $1.0 millionappropriated for this purpose each year from the City s block grant funds.
The City remains committed to its capital improvement program. In FY97, thegeneral fund will resume its contributions to the Capital Improvements Fund with $800,000allotted to the ISTEA program. These funds allow the City to access federal funds for thepurpose of repairing streets and bridges under the Surface Transportation Program andultimately provides maximum leverage for city dollars.
Other citizen services are maintained or in some instances, marginally increased. Tocombat the problem of illegal dumping, a Trash Task Force has been initiated to targetcertain areas where substantial illegal dumping activity has occurred with enhanced effortsat monitoring, vehicle impoundment, arrest and prosecution. The street light enhancementprogram continues to be a high priority and funds are maintained in FY97 budget to completethis program.