Creve Coeur city administrator presents FY2026 budget and urges use tax as primary revenue option

Mark Perkins, Creve Coeur city administrator, opened the public hearing on the proposed fiscal year 2026 budget by saying, “I’m pleased to present the annual budget for fiscal year, 2026.” He told the council the city remains in good financial condition but faces “headwinds” as revenue growth has flattened while expenditures — especially personnel and public safety costs — continue to rise.

Perkins said the city’s operating fund balance is projected to move above $13,000,000 (about 70% of annual expenditures) in FY2026 and that staff have begun setting aside money for a long-planned government center replacement. “Our goal is to be able to set aside about $10,000,000 by 2028,” he said, adding the city could then ask voters to approve a bond without increasing the current tax rate.

Perkins reviewed revenue drivers and pressures: sales and public-utility taxes make up roughly two-thirds of operating revenues, sales-tax growth has flattened since the post‑COVID bump, and public-utility tax collections show modest increases tied to rate changes. He highlighted a recent steep increase in the city’s trash and recycling contract and described transfers the general fund makes to capital (about $1.2 million annually) to keep street and other projects moving.

On personnel, Perkins said the city is increasing salary ranges in many positions (some by up to 5 percent) and expects an average pay change near 3.5 percent after market-equity and step adjustments. He noted the city joined the statewide municipal retirement system and that employee contributions and health-insurance arrangements help offset some costs.

To address the projected budget gap, Perkins presented three options: adopt a local use tax (targeting remote/out-of-state purchases not subject to sales tax), consider updating the business-license fee (unchanged since 1990), or — only if other options fail — implement direct billing to residential customers for trash/recycling costs. The finance committee’s recommendation, Perkins said, is to pursue the use tax as the primary option and the business-license fee as a secondary option.

Council members asked clarifying questions about the use tax’s scope; staff confirmed it applies to out-of-state vendors without in‑state nexus and would be administered through the Missouri Department of Revenue. Perkins closed by noting that more detailed budget pages were included in the packet and that final adoption will be on a future agenda.