Town and Country holds public hearing on proposed 2025 budget; staff proposes $1.5M transfer to capital reserves

City of Town and Country officials opened a public hearing Dec. 9 on the proposed 2025 budget, where city staff outlined revenue, expenditure and transfer assumptions that will shape next year’s capital program.

Presenter "Mr. Dolly" told the Board of Aldermen that the audited beginning fund balance for 2024 was $17,500,000 and that timing from a recently approved property tax produced a 2024 revenue estimate of about $13,300,000 versus an adopted budget of $11,100,000. He said the city began receiving property tax receipts in early November and will continue through Dec. 31, contributing to the 2024 revenue estimate.

The presentation highlighted structural pressures the city manages each year: the road fund does not generate enough by itself for planned projects and routinely receives transfers from the capital improvement sales tax fund. Staff reported a transfer to the road fund of $760,006.63 in 2024 and proposed a transfer of $1,500,000 from the general fund into the capital improvement fund as a reserve for 2025.

"We plan to transfer, with your approval, $1,500,000 from the general fund to the capital fund for a reserve," Mr. Dolly said during the presentation. He explained that the 2025 general fund change appears large on the slide (14.8%) because that transfer is counted as an expense on the line; without the transfer, the underlying change would be roughly 1.7%.

Staff also walked through revenue and expenditure composition: sales tax accounts for about half of total revenues, salaries and benefits are roughly a third of all funds, and police and ambulance combined are the largest departmental expenditures. On the revenue side, staff included a conservative 2.5% increase for property-tax reassessment but said it did not attempt to estimate the possible effect of a senior property-tax exemption program.

On sales and use taxes, staff noted year‑over‑year declines in sales-tax growth and the city’s limited ability to capture online purchases because it lacks a local use tax mechanism. When asked whether the city had modeled use-tax capture, staff said comparable cities suggested about $500,000 annually in potential revenue.

The presentation listed several capital projects and conceptual estimates: $225,000 for roof repairs, $125,000 for salt storage design and driveway, and an estimated $1,150,000 for municipal building design work. Staff also noted a surveillance-equipment line split where 25% appears in the parks/stormwater fund and the remaining 75% in the capital fund on that breakout slide.

Board members pressed staff for more detailed, actionable cost estimates for the municipal building and the fire station. Staff said the city hired a consultant (Navigate) to study both facilities; the initial finding was the buildings are structurally sound but need major upgrades. Aldermen asked for more detailed engineering and schematic budgets in January to provide the 'hard numbers' necessary for decisions about using reserve funds or adjusting the property tax rate.

A staff correction to the record clarified a parks/stormwater grant as $465,000 (initially stated as $470,000). Mayor and board members also asked for follow-up on specific capital items such as intersection and road-widening studies for neighborhoods expressing safety concerns.

The public hearing record and supporting exhibits — affidavit of publication, posted notices, bill 24‑59 and the presentation — were entered into the record as exhibits. The hearing closed to allow the board to proceed with other agenda items.

The board did not take a final vote on adopting the 2025 budget during the hearing; bill 24‑59 (the ordinance to adopt the budget) remained on the agenda for subsequent consideration.