Council to Vote on 2024 Budget

A copy of the proposed budget is available for public inspection at the Maryland Heights Government Center and on the City's website at until its scheduled adoption by City Council on December 21, 2023.

Total 2024 budgeted revenues for all governmental funds is $43.7 million, an increase of $1.9 million (4.6%) from the estimate for 2023, without accounting for the revenue from the American Rescue Plan Act that was received in 2021, 2022, and 2023 and is no longer available in 2024. $875,000 of the increase relates to an anticipated increase in sales and gaming tax revenue. In addition, $250,000 in marijuana sales tax revenue is budgeted for 2024. The voters approved the new marijuana sales tax in the spring of 2023, after marijuana was legalized for recreational use in 2022. Approximately, another $500,000 is included in the 2024 budget as a one-time payment from a telephone utility tax litigation suit awarded to the City in a Class Action Settlement.

Total expenditures, all funds, in 2024 will be approximately $43.67 million, a decrease of $800,000 from the estimated $44.5 million in 2023. $500,000 of the decrease relates to expenditures in property restoration that occurred as the result of a flood in 2022 and the related expenditures for those repairs in 2023. The remainder of the decrease in expenditures is a result of less capital projects budgeted for 2024 compared to 2023.

General Fund expenditures are up $1.3 million (5%) in 2024. The 2024 Budget was prepared with a 3% market adjustment for all full-time employees. Other operational increases are anticipated, as costs related to employee benefits continue to rise and the cost of commodities has increased with inflation.
Capital Improvement Fund expenditures are expected to be decreased by $887,000 (18%). The decrease is related to a large project for the City’s Sustainability Center, which was completed in 2023, and expenditures related to the project will not be recognized in 2024.

Park Fund expenditures are projected to be $7.5 million with $63,000 or 1% less than the estimate for 2023. While the parks operational budget increased compared to 2023, the capital projects for parks decreased significantly.

At the end of 2024, the City's Reserve Fund will be approximately $29 million, equal to 103% of the 2024 General Fund expenditures; the City's goal is to maintain a level of 75%. The Capital Improvement Fund balance will decrease $414,000, as planned project expenditures are expected to exceed gaming tax and grant funding. All budgetary funds will total $45.5 million at the end of the year, of which $6 million is restricted to tax increment financing activities.

A public hearing is scheduled for Thursday, December 7 at 6:45 p.m. at the Maryland Heights Government Center.