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Olivette finance director reports stable reserves, $450,000 TIF payment; sales tax still below expectations
Summary
Finance staff told the Olivette City Council that through February the city’s finances showed no major surprises, the county released property taxes and the city received $450,000 in Gateway TIF funds; sales tax receipts remain below initial budget expectations and the council discussed reserve-policy targets.
Finance Director Mr. Mann presented the city's fiscal picture through February and told the council there were no new surprises but noted two items of interest: sales tax revenue remains below earlier expectations, and the city received $450,000 in Gateway TIF payments.
"We did, receive $450,000 in TIF funds," Mann said, noting that the payment represents tax-increment financing receipts above the base and would be forwarded to the trustee in the coming month. He told the council property-tax receipts from the county have caught up and are slightly above expectations once protest funds are resolved.
On sales taxes, Mann said receipts are steady but remain below the original budget forecast for the fiscal year. Utility-tax receipts are mixed but stable; the water-utility tax timing changed when the billing schedule shifted from quarterly to monthly. Parks and recreation revenue showed favorable movement, with baseball and membership lines improving.
Council discussion turned to the city's reserve policy. Mann and councilors described the policy target as 50% of annual expenses and 50% projected five years out. Mann recommended evaluating whether the 50% five-year reserve target remains appropriate given recent revenue changes and inflationary pressures; the council agreed to review reserve goals during upcoming budget meetings.
Council members scheduled the first budget meeting for the next Tuesday, and staff signaled they will return with more detailed projections and options for reserve-policy adjustments during the budget process.
