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Session 1782 - Budget Meeting May 15, 2000 is the tax that local businesses pay on out of town purchases. St. Louis County Sales Tax 673.12 and St. Louis County Sales Tax Capital Improvement 673.14 are taxes that everybody pays and then it is returned to the different communities by a complicated formula. A 6% or 7% increase was budgeted, but the revenue flattened out and we actually received pretty close to what we got this current year. Responding to the Mayor, Mr. Ollendorff said that Mr. Norfleet had asked the County for some reasons for the dropoff and he was told that it was due in part from internet sales, but they did not feel that TIF transactions were a major cause. The County did think that certain businesses that receive special sales tax exemptions are mounting up, like hotels, which could also be hurting these revenues. Based on Mr. Norfleet's study of this issue, sales tax should increase 2% - 3% next fiscal year. The sales tax formula which was just increased January i will provide some more revenue. 690.10, Prior Year's Revenue, is where we dig into the fund balance that we have saved up over a period of years. We are expecting to use half a million dollars from this fund this year and the same amount next year. We are well over $5 million dollars in reserves. Mr. Norfleet suggests that we have at least 15% of our budget in reserves. The budget is about $23 million, so we should have at least $3.5 million in reserves. By the end of next fiscal year, we should have about $4 million. 10.10 LEGISLATIVE SERVICES: Mr. Ollendorff directed Council to page C-4. The Election Account is at zero, because there is not a scheduled election this year. The total is up because the Public Officials Insurance is back up to the $23,667 level. 721.10, Miscellaneous Outside Personal Services is contributions to U. City in Bloom. Their budget letter has not been received yet. Mr. Ollendorff recommends a $5,000 increase. Council wants to make sure that proper documentation from U. City in Bloom, that justifies the need for the increases, will be submitted for review first. After lengthy discussion, Council decided to withhold approval until after U. City in Bloom submits their budget letter. Mr. Wagner feels that these yearly $5,000 increases goes well over the normal inflation rate and feels that the organization needs to clearly justify the need for them. Ms. Colquitt asked about the Travel budget and questioned the fact that only $15,000 was budgeted again for the next year, when she had heard that we were over the budget currently. Mayor Adams asked that the Council Travel budget be placed on June 3rd's study session agenda to be discussed further. Mr. OIlendorff explained that some money was put in for briefcases and badges for Councilmembers. Mr. Sharpe thinks that the briefcases are a good idea for Council because many of them are carrying things in their arms. He thinks that most of Council would like to have briefcases. Ms. Colquitt would like to have badges for Council for clearer identification at conferences. Mr. Wagner does not like the idea of badges. Mayor Adams does not understand the need for badges - he has seen them, but does not really understand the need for them. After considerable discussion, Council decided to leave the 2