City Administrator Kuntz presented the Operating Budget overview. He said there’s no out-of-state travel for staff in 2002. The suggested Lagers Pension upgrade has been deferred because it would have added approximately $42,000 to the budget. The amount of increase that is applied to the overall pay plan based on the 10 cities in the comparison is 3½%. The minimum and maximum salaries for all positions are at the 70^th percentile, which is the policy established by the Board. To fully fund the plan based on the 10 cities, would have meant about 7½% increase to the City’s total salary expenditures. There will be one additional employee position in the Inspection Department starting July 1.

Lowe’s may open in either December or February. Stein Mart, in its first two weeks, has had the highest volume of any Stein Mart in the chain. There will be a 10% reserve going into 2002. The City is so reliant on retail sales, if the economy goes down, the 15% goal may not be met at year end.

Finance Officer Loehr presented a report on TIF revenue projections.

Alderman Buermann asked if there is a commitment from Target for expansion into the Marshall’s facility. City Administrator Kuntz said Target is talking with Wildwood about a store in that area. This Target is a high-volume store. It has also been rumored that Target is going to expand into the Marshall’s space and use it for warehousing and take the existing warehousing in the back and turn it into retail space. Alderman Boland asked how much of Olde Towne is leased at this time. City Administrator Kuntz said close to 75%.

Mayor Jones asked what number was being used to determine the point of sale and pool population last year. Finance Officer Loehr said that according to St. Louis County, the post 1990 point-of-wale population was 12,888 and the pool population was 16,058. The 2000 census population figures are 12,464 point-of-sale and 18,819 pool.

Alderman Buermann suggested that at the end of June an estimate of the reserve should be determined in case the policy needs to be changed.

Assistant City Administrator Aiken said there’s little change between the 2001 and 2002 budget. The increase is $117,000, most of which is related to the TIF funds pass-through and personnel cost increases including a new inspector.

Alderman McDowell asked if there are any employees about to retire. Mr. Aiken said possibly, but no formal announcement has yet been made. The activity level for inspections is not in new house permits. It’s in decks, pools, remodeling. There were 1,200 building permits issued in 2000.

City Administrator Kuntz said that in the Administration budget there’s a $25,000 contingency because we don’t have direction and know exactly what is going to be done with some of the events such as Business Appreciation. Legal expenditures are reflected in three places. Several years ago, the Board directed the City Attorney to attend the Zoning Commission and Board of Adjustment meetings. This cost is under Planning. The retainer is under Legislation. There’s also a $25,000 fund for additional legal services. This involves litigation, negotiations, disputes with vendors, anything that takes additional time and research by City Attorney Lucchesi.

City Administrator Kuntz said the sewer lateral program has become a very time consuming process. Estimates for staff time is being deducted and charging it to the sewer account, as the City is legally entitled to. Ten hours or more per week is spent on the program.

City Administrator Kuntz said the calendar for next year is $25,000. Alderman Boland asked if the cost could be subsidized with advertisers. City Administrator Kuntz said this was tried regarding the 50^th anniversary and there were only a couple of vendors who would participate.

City Engineer Kramer said the Public Works budget is almost the same as last year. Street maintenance is the highest priority. The increase over the 2001 budget is $225,000. Of that amount, $25,000 is for mudjacking. The storm drainage program has been reduced because of the involvement with MSD, which is now taking care of these kinds of repairs. If the West Nile Virus is a continued threat, there will be more mosquito spraying.

In the event of retirement of the Street Superintendent, Mr. Kuntz explained that the same organizational structure is in place as in the Police Department. There are two foremen. The job description would be reviewed. The Public Works Department would not be paralyzed in the event of a retirement. City Engineer Kramer said the foreman are field people and there are over 30 people on the street at any one time. Additional training of a foreman could be done to adequately fill the position.

Alderman Buermann asked if there is a legal mandatory retirement age. City Administrator Kuntz said no. Alderman Buermann is concerned that since there are a lot of complaints about the streets, perhaps having someone in the position with fresh new ideas would help with the problems.

Alderman Gatton suggested making sure the street index is totally up to date. The road crews should be working from a current and up-to-date list. City Engineer Kramer said that the Department has accurate and complete street listings. The omission on the pavement study was the result of a communications error with the consultant and is being corrected.

City Engineer Kramer said the cost of leaf collection is growing. There are eight temporary employees hired.

Alderman Boland asked about the actual expense for snow and ice control. City Engineer Kramer said the price of salt is up $8 per ton more from $18 last season to almost $26.

Mayor Jones said the storm drainage control operating budget shows a salary of $116,000. Whose salary do we dedicate the storm drainage control? City Engineer Kramer said it is a percentage of the overall personnel budget. If a tree falls in the creek and must be removed quickly, if there’s a blocked sewer and raining, the City can’t wait for MSD to take care of it.

Police Chief Biederman said the main increase is the result of benefits and salaries. The bullet proof vest program will be continued whereby the older vests are rotated out and grants can frequently be obtained for the purchase of new vests.

Alderman Gatton noted that recently there was the donation of a car for the D.A.R.E. program from Dick Dean. He asked if there are any other donations possible from corporate citizens to help the program.

Alderman Boland asked if any additional training is budgeted for security as a result of terrorism, anthrax, etc. Police Chief Biederman said not at this time because he doesn’t know what training will become available. He is monitoring the issue and will respond as training and equipment needs are determined.

Director of Parks and Recreation Bruer gave an overview of the Parks and Recreation Operating Budget. The budget is divided into Parks, Golf Operations, Golf Club, Outdoor Swimming Pool, Historical Commission, Fine Arts Commission and Ballwin Days. With the Vlasis Park redevelopment, AmerenUE will be installing a new transformer. Some of the rotted logs will be replaced in the historic home in the park, and work is scheduled to begin on the old school house.

City Administrator Kuntz said a representative from the PGA will evaluate and inspect the golf course.

Alderman Boland asked if there is something the Board can do to help the Arts Commission become a functioning group. City Administrator Kuntz said the Arts Commission needs support from the Board of Aldermen by attending some of their meetings and functions. They are pursuing a grant. Mayor Jones wrote an endorsement letter for the Arts Commission. Mayor Jones said that the Arts Commission should be invited to participate in other City events and funding from Ballwin Days. Ms. Loehr reported that most years they come close to breaking even.