OVERVIEW 

The City of Ballwin has 2 separate budgets; a Capital Budget and an Operating Budget.  The revenues and expenditures for each budget have been completely separate since 1998.  The Capital Budget is primarily funded by a ½ cent capital improvement sales tax and a ½ cent Parks Improvement sales tax.  By law, these funds can only be spent for major improvements, vehicle/equipment acquisition or maintenance related expenses. 

The Operating Budget, on the other hand, is funded primarily from sales tax, merchants licenses, and the utility tax.  These revenues are used to pay salaries, fringe benefits, insurance and related expenses such as fuel, road salt, and other supplies. 

The Capital Budget of $5,247,203 is almost $½ million less than it was last year.  Only one grant is expected, and this is for a $593,040 expenditure to construct sidewalks along Manchester Road.  Revenues are projected to remain flat while 34% ($1,770,740) of the total will be applied toward debt service. 

On the operating side, we are once again faced with the challenge of struggling to contain costs in light of continued sluggish economic conditions.  Ballwin is a city which is vitally dependent upon retail sales to fund its programs and services.  50% of our budget is directly related to business activity.  The total 2005 Operating Budget calls for expenditures of $13,463,117 and revenues of $13,463,648.  This compares with a 2004 budget of $13,460,710. 

In summary, overall expenditures are in line with projected revenues.  There will be no change in programs or services, and no significant change in our revenue forecast is anticipated for the months ahead. 

Robert Kuntz, City Administrator