Webster Groves finance director reports midyear budget numbers; projects narrower deficit than originally budgeted

The city’s Director of Finance presented a second-quarter/all-funds budget update (excluding Destination WG bond proceeds) and a midyear analysis.

Key figures the director reported included a budgeted general-fund deficit of $1.2 million for the year; at the December 31 snapshot the city had taken in roughly $2.1 million less in revenues than it had spent year-to-date (the director said that reflected timing issues and county billing delays). The city reported approximately $32.5 million in investments and cash on hand, with about $19.25 million invested at an average yield around 3.71 percent.

The director said January numbers brought the city roughly to 50% of budgeted revenues once late county deposits were included and that, under a set of optimistic assumptions (revenue maintaining current monthly averages and full spending of budgeted lines), the projection showed a possible $600,000 surplus. The director cautioned that the projection depends on multiple variables including final police collective bargaining agreement settlement, staffing vacancies (several were noted), and timing of county deposits.

The director also discussed credit-card usage fees and software/payment vendor issues that were generating monthly costs of $10,000–$15,000 until a resolution is implemented.

What’s next: staff will continue monitoring receipts (county deposits) and will present budget amendment proposals as needed; council asked clarifying questions but took no budget actions at this meeting.