A proposed $15.2 million budget for the city of Poplar Bluff would include funds to demolish the former city complex on Second Street and final payments on technology debt.
The council discussed the 2024 budget Monday and is expected to approve it Dec. 18.
City complex demo
The proposal includes a $225,000 shortfall, city manager Matt Winters explained, but this would be covered through funds remaining on Certificates of Participation which were used to pay for the Shelby Road police station.
The $225,000 will serve as the local match for demolition of the former city complex, Winters said. Grant funds will cover the remainder of the cost, which is anticipated to be $450,000, if the low bid for the project is approved Dec. 18 by the council. The city reviewed five bids for the project Monday, with the low bid from Courtney Construction of Mountain Grove and the high bid, $1.65 million, from RL Persons Construction of Poplar Bluff.
Revenues
The city is expected to see just over $15 million in revenue collections in fiscal year 2024, according to documents presented to the council.
“Sales tax revenues over the last several years have seen modest increases, with an average annual increase of approximately 5% from 2018-2022,” Winters said in a letter to council members. “During fiscal year 2023, the city sales tax has remained flat compared with 2022. The city’s budget relies heavily on the one-cent general fund sales tax, which comprises approximately 45% of the general fund budget.”
“City revenues have seen modest increases prior to 2023,” Winters explained.
“However, they have been outpaced by the increased costs in areas such as insurance, equipment costs and operating costs such as software and technology expenses,” he continued. “It will be imperative for our administrative staff to see innovative measures to control and cut costs.”
One proposal is to put a 3% adult-use marijuana tax on the April ballot, Winters said. This could generate approximately $350,000 annually, he said. If passed, it would take effect Oct. 1.
Expenses
The FY24 budget does not include a raise for employees, other than those required by contract for step-raises for those eligible, Winters said.
The city will see the following increases in costs: 20% for property and casualty insurance; 6% for general liability and worker’s compensation insurance; and 5% for health insurance.
The city will also increase payments in the next year to the retirement plans for the following classifications: general employees, from 19.2% to 19.7%; police department employees, from 22.3% to 22.5%; and fire department employees, from 19.2% to 20.2%.
Funds will be spent in 2024 from tourism tax money to make improvements to the Black River Coliseum, including $125,000 for work on a cooling tower and $300,000 for renovations, according to budget documents.
Winters noted in information for council members that recruitment and retention of quality employees continues to be a challenge and the city has seen fewer applicants when positions do open.
The city is set in 2024 to make the final payment on a $5 million loan from Southern Bank for equipment, a cost of approximately $518,000 per year. Final payments will also be made on two fire trucks and two backhoes, a cost of $127,000 annually.
Next year will mark the last interest-only payment of almost $402,000 for the Shelby Road police station. Starting in 2025, the city will pay interest and principal at a cost of nearly $792,000.
City officials are also reviewing budgets for Municipal Utilities and the parks and recreation department.
Additional information will be shared in upcoming articles.