St. Louis County Revenue 2008 Report

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2008 SOURCES OF INCOME AND REVENUE - BUDGETED FUNDS The main source of revenue for St. Louis County is taxes – 62.9% of all income and revenue. Taxes break down into six types, (1) Property Tax (23.4%), (2) Sales Tax (9.5%), (3) Sales Tax – Sleeping Rooms (1.9%), (4) Transportation Sales Tax (23.1%), (5) Utilities Gross Receipts Tax (4.8%), and (5) Cigarette Tax (0.2%).

2008 Estimated Revenues ‐ All Budgeted Funds (8) 8%

(7) 5%

(9) 5%

(6) 7% (5) 2%

(1) 63%

(4) 1% (3) 6%

(2) 3%

(1) Taxes (3) Assessment & Tax Fees (5) Rents & Investment Earnings (7) Fuel Sales

  Revenue Category  General Property Tax  Sales Tax (1¢ and Metro Parks)  Sales Tax ‐ Sleeping Rooms  Transportation Sales Tax  Utilities Gross Receipts Tax State Cigarette Tax  Licenses & Permits  Assessment & Tax Fees  Fines & Forfeitures  Rents & Investment Earnings  Intergovernmental  Fuel Sales and Taxes  Charges for Services  Fees and Other Revenue  Total Revenues 

2006 Actual 110,807,916  48,061,545  9,553,598  116,615,776  22,261,172  1,150,648  13,705,396  29,151,958  4,027,472  13,780,311  34,188,330  22,309,106  39,757,415  27,219,223  492,589,866 

(2) Licenses & Permits (4) Fees Fines & Forfeitures (6) Intergovernmental (8) Charges for Services

2007 % Estimated Change 121,920,297  10.0% 48,950,000  1.8% 9,630,000  0.8% 119,300,000  2.3% 23,990,832  7.8% 1,075,648  (6.5%) 14,126,743  3.1% 30,716,600  5.4% 4,017,607  (0.2%) 12,413,802  (9.9%) 27,490,481  (19.6%) 24,500,000  9.8% 40,042,479  0.7% 36,553,004  34.3% 514,727,493  4.5%

2008 %  % of Estimated  Change  2008 Total 121,920,297  0.0%  23.4% 49,396,000  0.9%  9.5% 9,726,300  1.0%  1.9% 120,400,000  0.9%  23.1% 24,935,900  3.9%  4.8% 1,054,135  (2.0%)  0.2% 14,127,790  0.0%  2.7% 31,494,450  2.5%  6.0% 3,965,632  (1.3%)  0.8% 13,509,563  8.8%  2.6% 37,422,010  36.1%  7.2% 25,630,224  4.6%  4.9% 41,046,667  2.5%  7.9% 26,806,263  (26.7%)  5.1% 521,435,231  1.3%  100.0%

Revenue Trends Revenues have been increasing since 2004; however growth has been more modest than what was seen during the late 1990’s. All funds revenue is estimated to increase 4.5% in 2007 and another 1.3% in 2008.

All Funds Revenue History:  1996‐2008 (Estimated)

$ in Millions

$550.0 $500.0 $450.0 $400.0 $350.0 $300.0 1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007  2008  EST EST

Fiscal Year

The expected growth in 2007 is driven by a 10% estimated increase in property tax revenue and smaller increases in gross receipts and fuel sales revenues. The 2007 estimate also includes a $6 million one-time revenue from the sale of property. While this improves the County’s financial situation in 2007, these are not revenues that will continue to grow. Gross receipts tax revenues increase as the result of a court settlement that released escrowed receipts that had built up over a two year period. Finally, general sales tax, which accounts for approximately 10% of our total revenues, continues to range from a 1% increase to a 2% decrease each year. Revenue growth in 2008 is due to anticipated sales tax growth of 1%, and nearly 5% growth in fuel sales at the Spirit of St. Louis airport.

Revenues by Source:  2005‐2008 (Estimated) $350.0 $300.0

$ in Millions

$250.0 $200.0 $150.0 $100.0 $50.0 $0.0 Taxes

Assessment & Tax Fees

2005

Rents & Investment  Earnings 2006

2007 EST

2008 EST

Fuel Sales

Fees and Other Revenu

Property Taxation Property tax is determined by the assessed value of your property and the tax rate. Missouri State statute has established a two-year reassessment cycle with reassessment of all real property in odd-numbered years. The tax rate is set by the elected officials of the local governments that have jurisdiction where your property is located. The rate is based on the amount of funds needed to operate the governments. Taxes are levied on all taxable real and personal property owned as of January 1st in each year. By statute, tax bills are to be mailed in October. Payment of taxes is due by December 31st, after which they become delinquent and accrue a penalty of one percent per month.

2007 Average Residential Tax Rates Service Districts 18% Cities 5%

Other 20% St. Louis County 7%

School Districts 50%

The County Collector of Revenue collects taxes for most taxing districts in the County. Citizen’s property tax bills include not only County property taxes, but also school district taxes, city taxes, service district taxes and other special district taxes. While these taxes are collected by the County, they are distributed to the various taxing districts and are not a part of the County tax rate. The 2008 tax rate for St. Louis County has been recommended at $.558 per $100 of assessed valuation, $.495 for the General Funds and $.063 for the Debt Service Fund.

Historical Property Tax Information

Tax Rate History $0.585  $0.580 

Rate

$0.575  $0.570  $0.565  $0.560  $0.555  $0.550  1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Year

Assessed Value History $26.0 $24.0

$ in Billions

$22.0 $20.0 $18.0 $16.0 $14.0 $12.0 $10.0 1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Year

Property Tax Revenues $130.0

$ in Millions

$120.0 $110.0 $100.0 $90.0 $80.0 $70.0 $60.0 1996

1997

1998

1999

2000

2001

2002 Year

2003

2004

2005

2006

2007  (Est)

2008  (Est)

Sales Tax The County has several distinct sales tax revenue streams. The main sales tax accounts and historical collections are show below.

Sales Tax Revenues:  1996‐2008 (Estimated) $140.0 $120.0

$ in Millions

$100.0 $80.0 $60.0 $40.0 $20.0 $0.0 1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007E 2008E

Year Sales Tax (1¢ and Metro Parks)

Sales Tax ‐ Sleeping Rooms

Transportation Sales Tax

Utilities Gross Receipts Tax 

As reflected in the above graph, sales tax receipts have flattened out and in some cases decreased since 2001. The increase in 2001 was mostly related to the addition of the Metro Parks Tax. There are several assumptions as to why this has happened. On a macro level, the whole County saw a decrease in growth in the economy starting in 2001. One major issue is that Internet sales do not generate sales tax and more and more purchasing is being carried out on the Internet. A second possible cause is that consumers seem to be shifting their spending from goods to services. Another cause may be legislative intervention by way of exemptions for certain industries or products. Whatever the cause, the result is that although sales tax remains a major revenue source for St. Louis County it can no longer be thought of as a way to increase services unless new sales taxes are imposed. The County’s primary general operating sales tax is a 1.0 cent tax on retail sales that is Countywide and shared with municipalities. The County’s share of this sales tax is based on population. This tax is deposited into the General Government Fund and transferred, as needed, to the Park Maintenance Fund.

The Metro Parks sales tax of .10 cent was approved by voters in April of 2001. This Countywide sales tax on retail sales is shared with the City of St. Louis and the Metro Parks District. It is primary used for construction projects within the County parks. This is the only sales tax in the County that exempts food from the tax. This tax is deposited into the Park Maintenance Fund. Sales Tax – Sleeping Rooms is a 3.5% tax on the amount of sales for all sleeping rooms paid by transient guests of hotels and motels in the County. This tax is deposited into the Convention and Recreation Trust Fund and is used meet St. Louis County’s obligations for the rent, fees or charges payable for the regional convention and sports complex and the Cardinals Ballpark stadium bonds. Excess collections above these obligations can be appropriated for regional convention and recreational development. The Transportation Sales Tax consists of: (1) a Countywide .25 cent sales tax on retail sales that is deposited into the Public Mass Transit Fund and transferred to the Bi-State Development Agency (Metro) to be used for mass transit operations and development. None of these funds are retained by the County; and (2) a .50 cent sales tax on retail sales that is deposited into the Transportation Trust Fund and used for road and bridge projects and support for Metro. Utilities Gross Receipts tax is a tax levied on utilities; electric, gas, telephone and water. There has been quite a bit of controversy for the last few years regarding Utilities Gross Receipts tax and cellular telephone companies. Until there is State legislation defining the proper taxation of these companies, this tax will fluctuate and be difficult to project. This tax is deposited into the General Government funds and supports the Police Department.

Revenues by Fund Type General Funds The General Funds (General Fund, Special Road and Bridge Fund, Health Fund and Parks Fund) rely on taxes for just over half of their funding. While revenues decreased in 2002 and 2003, St. Louis County did not experience the same severity of problems as those found in other communities. The diversity of income sources and healthy fund balances allowed the County to continue most existing services.

2008 Revenue Estimate ‐ General Funds (8) 5%

(9) 6%

(7) 13%

(1) 56%

(6) 5% (5) 2% (4) 1%

(3) 7% (2) 5%

(1) Taxes (4) Fees Fines and Forfeitures (7) Charges for Services

Revenue Category General Property Tax Sales Tax (1¢ and Metro Parks) Utilities Gross Receipts Tax State Cigarette Tax Licenses & Permits Assessment & Tax Fees Fines & Forfeitures Rents & Investment Earnings Intergovernmental Charges for Services Fees and Other Revenue Allocations & Transfers In Total Revenues

(2) Licenses & Permits (5) Rents & Investment Earnings (8) Fees and Other Revenue

2006 Actual 95,158,685 48,061,545 22,261,172 1,150,648 13,705,396 20,777,015 4,027,472 6,134,397 20,636,159 39,497,785 17,452,473 20,362,832 309,225,579

2007 Estimated 104,715,199 48,950,000 23,990,832 1,075,648 14,126,743 22,216,600 4,017,607 6,466,800 16,940,481 39,792,479 22,691,569 18,260,607 323,244,565

% Change 10.0% 1.8% 7.8% (6.5%) 3.1% 6.9% (0.2%) 5.4% (17.9%) 0.7% 30.0% (10.3%) 4.5%

(3) Assessment & Tax Fees (6) Intergovernmental (9)Allocations and Transfers

2008 Estimated 104,715,199 49,396,000 24,935,900 1,054,135 14,127,790 22,739,450 3,965,632 6,600,656 17,023,010 40,796,667 15,984,903 20,265,000 321,604,342

% Change 0.0% 0.9% 3.9% (2.0%) 0.0% 2.4% (1.3%) 2.1% 0.5% 2.5% (29.6%) 11.0% (0.5%)

% of 2008 Total 32.6% 15.4% 7.8% 0.3% 4.4% 7.1% 1.2% 2.1% 5.3% 12.7% 5.0% 6.3% 100.0%

Revenues by Fund Type Special Revenue Funds Special Revenue Funds have several funding sources that relate solely to the mission of that particular fund. Revenues that support each fund are legally restricted to expenditure for a particular purpose. These revenue sources are explained within each fund’s detail section.

Special Revenue Funds 2008 Estimated Income & Revenues Fees and Other  Revenue 26%

Sales Tax ‐ Sleeping  Rooms 33%

Charges for Services 1% Intergovernmental 8% Rents & Investment  Earnings 3%

Assessment & Tax Fees 29%

Debt Service Fund The Debt Service Fund is used to pay annual principal and interest payments of the County’s general obligation debt. The fund is supported by a separate property tax levy and investment earnings on that tax. Enterprise Funds Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business. The County has only one enterprise fund, the Spirit of St. Louis Airport. The airport operations are financed primarily from fuel sales and facility leases.

Spirit of St. Louis Airport Fund 2008 Estimated Income and Revenues Rents and Investment  Earnings 9% Fees and Other  Revenue 3%

Fuel Sales and Taxes 88%

Public Mass Transit Fund The Public Mass Transit Fund is supported by a Countywide .25 cent sales tax on retail sales. All funds collected are transferred to the Bi-State Development Agency (Metro) to be used for mass transit operations and development. None of these funds are retained by the County. Highway Capital Construction Program Funds The two Highway Capital Construction funds are primarily supported by a transfer from the Transportation Trust fund, a .50 cent sales tax on retail sales and Federal grants.

Highway Capital Construction Program 2008 Estimated Income and Revenues Rents and Investment  Earnings 8%

Allocations and  Transfers In 34%

Intergovernmental 52%

Fees and Other  Revenue 6%

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