Summer 2022

Summer greetings to all our residents! It is an exciting time of the year with so many things going on, not to mention warmer weather and further distancing from COVID (hopefully). We look forward to a busy summer with many concerts and outdoor events!

Some of the ongoing developments are Phase II of the Riparian Trail from Lydia Hill northward to Old Chesterfield Road, continued progress on Wildhorse Village, construction of Gateway Studios, progress on redefining of The District, several new subdivisions underway, and the beginning of Chesterfield Sports Complex at the west end of Chesterfield Valley.

Congratulations to re-elected and newly elected councilmembers!

Ward 1 Mary Monachella    

Ward 2 Mary Ann Mastorakos

Ward 3 Mike Moore               

Ward 4 Merrell Hansen         (newly elected)

Financial News

Sales tax receipts year-to-date through April are 14% above 2021 receipts as we continue to recover from financial effects of COVID. However, to put things in perspective, prior to COVID in 2019, the City’s total revenue was less than what it was four and five years earlier. I have said this before, but given the additional $2.6 million annual revenue that occurred during this timeframe from passage of Proposition P in 2017, it is of concern to me that our revenues have suffered to this extent.

Although the majority of voting precincts in Chesterfield approved the Use Tax (Proposition U), there were a few precincts that failed by a margin sufficient to cause overall failure by approximately a 52/48 margin. In all likelihood, the Use Tax will go on the ballot in the future, but at this time it has not been determined when that will be. I think that as more voters gain a better understanding, there will be less aversion to the measure. Although there were many cities where the measure passed, the County Use Tax (Proposition C) failed by a margin of 57/43. The Missouri Legislature passed Use Tax legislation that will allow the State to begin collecting their portion of 4.225% effective January 1, 2023.

All of the above said, we must adapt to a changing environment where retail sales tax receipts are declining in part due to increased online out-of-state purchasing. In spite of visible growth in our City, unless there is a retail sales tax component to that development, there is little additional revenue coming to the City to pay for additional services necessitated by the development. This is further explained by the fact that Chesterfield has no property tax, unlike St. Louis County, and many other municipalities. This probably sounds like a broken record to many of you, but in talking to our taxpayers, it seems that many are unaware of this fact. So, sooner or later, something is going to have to give, either increased revenues or decreased services. Personally, I hope we can find a way to increase revenues sufficient to maintain our level of services provided. Adding to the challenges is the fact that inflation has reared its head in a big way and is certainly increasing our costs for material, as well as labor.

In spite of these challenges, the City of Chesterfield is in excellent financial shape, with adequate reserves that are available in the event they are needed. While we pride ourselves in being able to provide a high level of service, our staff and elected officials are very fiscally conservative, and for these reasons I remain overwhelmingly optimistic about the continued success of our City!

I hope to see you out and about over the summer!

Cordially,

Mayor Bob Nation