Warrensburg Council Discusses Budget Projections
The Warrensburg City Council discussed revenue projections for fiscal year 2021 Monday night, and also heard funding requests from several community programs.
Revenue in General Fund includes property taxes, sales taxes, franchise fees, grants, licenses, fines, permits and numerous other items. Sales tax generates about forty percent of the total revenue collected in General Fund. There is some indication that sales tax will start decline.
However, the City has currently not seen that take place through June receipts. The Fuel and Motor Vehicle taxes have decreased the last couple of months by nearly twenty percent. The City of Warrensburg is anticipating a similar decrease in sales tax revenue.
The Use Tax revenue has been surprisingly more the last three months, it was noted. If patrons are purchasing on-line what was purchased in the brick and mortar stores, then there should be an increase in the Use Tax. Use Tax will not make up the entire difference in Sales Tax because not all on-line sales are taxable.
Sales Tax numbers are developed looking at the ten-year actual collection average. The average is then reduced each quarter throughout Fiscal Year 2021. First quarter Fiscal Year 2021, October through December is projected twenty percent lower, then fifteen percent second quarter, ten percent third quarter and five percent fourth quarter.
Overall Fiscal Year 2021 sales tax projections decrease. By using the phased in approach Page 2 of 6 there is conservative estimates in the projection and a little optimism that the economy will improve in the next fifteen months. Additionally, upon receipt of the July sales tax, these numbers may be revised either up or down.
Currently, Warrensburg's budget stands at $10,630,530 in total general revenue. The projected budget for next year is $9,159,780.
The Capital Improvement Transportation Fund, which collects Gasoline Tax, Motor Vehicle Sales Tax and Motor Vehicle Fees, is expected to drop from $860,000 this year to $643,500 next year.
The General Obligation Bond Fund, which was established upon an approved vote to collect a property tax debt levy on real estate and issue bonds to provide for equipment and infrastructure improvements, is expected to rise from the current $1,081,000 to $1,117,600 next year.
These numbers may be revised up or down based on July receipts in anticipation of reduction is sales tax collections, Budget Director Marcella McCoy noted during the 90-minute meeting, steamed live on ZOOM.
In addition, Council heard from several agencies requesting annual funding from the City of Warrensburg, including:
OATS - $15,000
Warrensburg Depot - $3,500
Pioneer Trails Regional Planning Commission - $6,781
Whiteman Area Leadership Council - $3,000
Big Brothers, Big Sisters - $1,400
Warrensburg Main Street - $36,000
Johnson County Economic Development - $75,000
Also, it was announced that Grover Park Baptist Church will not be sponsoring a Fourth of July fireworks show this year.
Council meets again Wednesday at 9 a.m. in special session to further discuss the budget. The meeting will include virtual tours of various departments.