Due largely to increased sales tax revenue from the opening of stores in the Shoppes at Eagles Landing retain development over the past years, the City of Lake Ozark is predicting a large increase in revenue for the upcoming 2013 fiscal year.
The city's 2013 budget, which was presented to the Board of Aldermen Tuesday night, is broken down as follows.
General Revenue Fund income is projected at $2,273,157 and expenditures projected at $2,268,900. The General Revenue Fund includes such city departments as administration (city hall), the municipal court, police department and planning and zoning department.
The Transportation Fund, which is basically designated for the care and maintenance of the city's system of streets and roadways, is projected to receive $595,970 in revenue and have $591,109 in expenditures.
The Sewer Fund is expected to receive $1,111,853 in revenue and have expenditures totaling $991,773.
The Sewer Capital Improvement Fund is projected at $2,933,530 in revenue and $2,548,148 in expenditures. The Sewer Capital Improvement Fund budget numbers include $1,880,000 in funds to be received from the Missouri Department of Natural Resources (DNR).
It should be noted, that in November Lake Ozark voters approved, by a margin of 53 to 47 percent, a one-quarter cent sales tax increase with the additional tax revenue designated to go toward completion of the ongoing citywide sewer upgrade project. The revenue from that tax increase will be used to repay the bonds that will be issued by the DNR.
City officials asked voters to approve the sales tax increase as a way to garner enough revenue to repay the bonds without having to raise monthly user rates by an additional $2.50. The objective in increasing the sales tax rate was to have visitors to the town, who also use the sewer system, help pay the cost of the needed upgrades.
The 2013 Water Fund is projected to receive $772,402 in revenue and have expenditures of $657,476.
Under state law, all revenue garnered through the city's sewer and water departments must be designated for use in those departments only and can not be transferred to other departments for use on projects that are not directly related to the sewer and water systems.
The Neighborhood Improvement District (NID) fund is projected to have a revenue of approximately $269,338 and expenditures of $269,303. In a NID only the properties within the geographical boundaries of the NID are taxed with the funds being used to make improvements, usually street and road rehabs, within the boundaries of the NID. Once the improvements have been made and the project paid for, the NID is dissolved.
And finally, the projected revenue for the city's Shoppes at Eagles Landing Tax Increment District (TIF) is projected to be $760,303 with expenditures of $755,720. A TIF is a formed around a particular development project to help the developer withstand the cost of adding public infrastructure, such as streets and utilities, to the development area. In a TIF, the developer issues bonds to pay for the public infrastructure improvements, then is reimbursed that cost from revenue garnered from sales/and or property tax increases that are directly related to the development. In the case of the Shoppes at Eagles Landing, the revenue will come from sales and property tax increases that came about because the previously unoccupied property now supports a large retail shopping center.
According to the budget document presented to the Board of Aldermen, this week, overall city officials are predicting a seven-percent increase in sales tax revenue. The budget document states that, "The new businesses that opened in 2012 as part of the ongoing development of the Shoppes at Eagles Landing will be contributing to our revenue stream along with any additional businesses that open prior to the fourth quarter of fiscal year 2013. Real estate (property tax) revenues on the other hand are anticipated to remain fairly constant although the city is still actively pursuing collection of delinquent taxes as the outstanding delinquency amount has been greatly reduced."