A cash drain, for the greater good

One of the major costs covered by the city of Poplar Bluff’s general fund is general governmental expenses.

This category falls behind fire and police costs, but still includes about 19% of all general fund spending.

General governmental expenses include not only salary for city hall employees, but also contributions by the general fund to prop up other funds. This has long included shortfalls for the Black River Coliseum, Poplar Bluff Municipal Airport, Margaret Harwell Art Museum and the employee health insurance fund.

In 2019, Municipal Utilities, the Poplar Bluff Parks and Recreation Department and other city departments made a contribution to help balance the scales of the health insurance fund. The departments transferred a combined $1.8 million in cash to the health insurance fund, with the lion’s share coming from the utility.

The decision was made with council approval because, city officials said at the time, all departments had benefited from general fund support of health insurance costs.

This contribution brought a $2.1 million shortfall in the health insurance fund accumulated over more than a decade down to less than $60,000.

The health insurance fund posted in the black in 2019 not only because of this payment, but because revenues for the year were nearly $250,000 more than costs, audit documents show. It was also in the black by nearly $700,000 in 2018.

The BRC continues to post losses. It has accumulated a debt to the general fund of just over $1.3 million since its opening more than 20 years ago. It received just over $400,000 in support from the general fund in 2019. The coliseum also receives separate funds from tourism tax dollars.

Supporters of coliseum activities often cite the benefits felt by hotels, restaurants and retailers when events are held there, which not only include concerts, but also community activities, such as the September Three Rivers Shrine Rodeo, Poplar Bluff School District’s convocation for all staff members, company Christmas parties and the annual Greater Poplar Bluff Area Chamber of Commerce dinner.

The general revenue fund also is owed approximately $420,000 in total, by the airport, art museum and other non major enterprise funds, audit documents show.