FY 2021 Fair Budget

JOIN US AT THE JUNE 3RD CITY COUNCIL MEETING

City Council will be discussing and voting on the FY 2021 budget at the next City Council Meeting. To attend this meeting, click the link below at the time of the meeting.

Wednesday, June 3, 7:30 pm

Registration is not required. Click the link below at the time of the meeting.
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WHY IS HAZELWOOD RUNNING OUT OF MONEY?

Like many cities across the country, COVID-19 has had a devastating effect on the City of Hazelwood’s funding. Revenue has declined an estimated 15% due to the COVID-19 economic downturn. Hazelwood has already lost $1.5 million in what was budgeted for 2020 through the end of June, 2020. We estimate an additional $4.2 million loss in FY 2021, for a total of $5.7 million.


But even before COVID, Hazelwood was facing a major economic crisis years in the making because decreasing City revenue was not keeping up with growing City expenses and payments.

HOW ARE HAZELWOOD CITY SERVICES FUNDED?

Hazelwood gets 40% of its revenue from various sales tax, 16% from property taxes, 16% from licenses and permitting, 10% from utility tax and 18% from all other sources, including revenue from parks and recreation programs. Except for a spike in the general fund after voters approved various sales tax increases, Hazelwood has seen a downward trend in the general fund starting in 2008.

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HOW DOES HAZELWOOD SPEND ITS MONEY?

The graph below shows a breakdown of Hazelwood’s services and expenses in the current 2021 budget.

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RISING COSTS IN FY 2021

Hazelwood was already expecting a $900,000 increase in fire protection district payments for the fire service in Robertson and Florissant Valley districts for FY2021. In addition, Hazelwood expects a 20% increase in health insurance costs and a 15% increase in work compensation/liability insurance for all personnel, including fire and police. 

TRYING TO FIX THE SITUATION

Hazelwood took action to cut costs even before COVID-19 hit, in anticipation of some of these budget deficits earlier in the year. Hazelwood saved $1.3 million this year by: 

- decreasing personnel costs, including a 15% decrease in administrative costs;

- taking out planned 2021 cost of living increases for Hazelwood employees;

- eliminating 11 positions that were unfilled; and

- suspending capital projects in 2020 and 2021.

As COVID-19 progressed, Hazelwood enacted an employee furlough plan on April 23 which included the following savings:

Six full-time, 35 part-time, 15 seasonal part-time, and 65 pool part-time employees will be furloughed for a minimum of 10 weeks

- 55 employees furloughed one day a week, resulting in a 20% pay cut for 10 weeks

While these measures have been in the right direction, these cuts will not yet make up for the current deficit

PROBLEM: HAZELWOOD NEEDS TO CUT SERVICES OR RAISE NEW REVENUE - BOTH

Hazelwood City Council is legally obligated to pass a balanced budget by the end of the current fiscal year. Therefore, Council has difficult decisions to make about potentially adding new revenue streams, reducing and/or eliminating city services or a combination of both.

Some Hazelwood expenses and payments, including payments to fire protection districts for fire service, are outside of Council’s control. These payments make up 21% of Hazelwood’s budget. The following proposed cuts and revenue options impact the 79% of services and expenses that City Council can control.

The following charts show the list of potential city service cuts that would help Hazelwood balance its budget. There are over $3 million in proposed cuts but City Council only needs to cut $2.2 million.

Proposed Cuts - Smaller amounts - TOTAL $224,300 SAVINGS

Department Description Savings
City Manager Layoff communications intern $12,315
City Manager Eliminate pool party $2,500
City Manager Eliminate newsletter $16,000
City Manager Eliminate ICMA conference $2,000
IT Cancel City Clerk agenda program $5,000
IT Eliminate color laser jet printer $1,196
Finance Eliminate credit card usage $10,000
Finance Eliminate GFOA national conference $2,050
Legal Eliminate MACA conference $1,000
Courts Eliminate MACA conference $1,350
City Clerk Eliminate quarterly codification $6,000
City Clerk Cancel SLCML dues $7,125
Police Eliminate tuition reimbursement $38,000
Police Eliminate attendance at diversity job fairs $4,250
Fire Eliminate repl. items for office & living area $12,000
PW Admin. Eliminate nuisance abatement $25,000
PW Admin. Eliminate APWA national conference $2,500
Garage Eliminate APWA national conference $2,600
Park Maint. Eliminate APWA national conference $2,500
Parks & Rec. Eliminate Inclusive Rec. Coordinator $2,250
Parks & Rec. Eliminate funding to Hazelnuts $3,450
Parks & Rec. Eliminate mailed brochures $11,000
Parks & Rec. Eliminate fireworks $24,000
Parks & Rec. Eliminate swim instruction $5,000
Parks & Rec Eliminate food truck nights/concerts $5,000
Parks & Rec. Eliminate summer camps $13,227
Parks & Rec. Eliminate NRPA national conference $2,700

Proposed Cuts - Bigger amount - TOTAL $3,036,231 SAVINGS

Department Description Savings
City Manager Combine with Finance Dept. $198,496
Police Layoff audio-visual tech $60,195
Police Layoff animal control officer $61,417
Police Eliminate 1 vacant police officer position $78,071
Police Layoff D.A.R.E. officer $47,384
Police Reduce REJIS charges $64,000
Police Layoff 15 police officers $1,289,824
Fire Layoff Deputy Fire Marshal $94,886
Fire Eliminate minimum manning $236,830
Fire Layoff 3 firefighters $226,537
Fire Reduce 6 captains to 3 $12,595
Garage Eliminate vacant MWI $48,949
Garage Layoff Public Works Secretary $65,483
PW Admin. Layoff 2 Code Enforcement Officers $119,617
PW Admin. Layoff Code Enforcement Secretary $48,460
Park Maint. Eliminate vacant MWI $48,949
Park Maint. Reduce road salt usage $32,500
Parks & Rec. Eliminate Senior Bus $30,429
Parks & Rec. Close Civic Center East $238,609
Parks & Rec. Eliminate non-revenue programs $33,000

IN THE FAIR BUDGET SURVEY, YOU WILL HAVE THE CHANCE TO COMMENT ON SOME OF THE PROPOSED SERVICE CUTS AND REDUCTIONS AND/OR NEW REVENUE OPTIONS.

Hazelwood has proposed the following services for reduction or elimination:
proposed service cuts
If Hazelwood would like to continue the same level of services, new revenue sources are required. The City's proposed revenue options are the following:
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WE NEED YOUR HELP

Hazelwood City Council would like to hear residents’ perspectives about potential options to increase revenues and/or reduce or eliminate city services. Share your input by completing the Fair Budget Survey, leaving a question or comment to Hazelwood City Council and telling your friends and neighbors to check out the Fair Budget website and survey.

Complete the Fair Budget Survey by Tuesday, June 2 11:59 pm in order for consideration during June 3 Hazelwood City Council Meeting.

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STAY INFORMED

Stay up to date with information about Hazelwood's budget situation by signing up for email updates and by attending City Council's next meeting on June 3, 2020.

WATCH THE RECORDING

Thank you for participating in the Budget Pop Up event on Monday, May 18. If you were unable to attend, a recording of the webinar can be found here:
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If you would like a Fair Budget Survey mailed or emailed directly to you, please click the button below or call Becky Ahlvin at (314) 513-5018 to share your name, mailing address or email and number of surveys requested.

All survey responses must be received by June 2 at 11:59 pm in order for consideration during the June 3 City Council meeting.

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Budget History