Despite a global pandemic that has caused economic stress to so many the city of Platte City held the line and actually improved its financial position.
Platte City assistant city administrator and head of finances Marjorie Gehr met with the Economic Development Sub Committee on Tuesday, March 16, to discuss the this past year’s audit before it’s presented to the full board next week. Gehr said the city increased its net financial position by close to $1 million and that the city has $3 million in its general fund that is not obligated.
“When you think about that in the context of the landscape of the pandemic and all of the other things you hear in the news about other cities that is truly just phenomenal,” Gehr said.
Gehr said the balances on the city’s books would last for 18 months if the city didn’t collect another dime in revenue. During the pandemic the city’s revenues fell by only $21,000. Gehr said that’s really not that much when put into perspective.
“From a COVID-19 perspective our impact was essentially none,” Gehr said.
The city’s good financial balances not only provide flexibility to the board but Gehr said it also looks good on paper to developers and creditors.
“When people look at the strength of the city some of the things they look at if the worst possible thing could happen and you couldn’t bring in another dollar how would the city operate?” Gehr said. “Those are things we should be proud of.”
Gehr said the city is not in the good financial position by accident. She said board policies combined with execution of staff is what’s led to the great balances.
“The city continues to be in a very strong financial condition and that’s certainly a testament to the policies of the board and how staff follows the policies,” Gehr said.
The committee also got a briefing from City Administrator DJ Gehrt about a street project that would include a portion of Kentucky that was not completed during the 2017 project and a section of Platte Falls from Kentucky to Running Horse Road. Gehrt said the city hadn’t planned to do any road projects this year but there was an opportunity. The project will add about $80,000 to the city’s budget if approved.
Some on the committee had concerns about construction traffic if the Platte County R-3 school district gets approval from voters on the bond issue. Gehrt said the city is purposely leaving out a section of Platte Falls for that reason.
“We deliberately stayed away from Platte Falls on the school district side,” Gehrt said. “We really have no idea what they’re going to do with the renovation project, how long it’s going to last, where the construction traffic is going and how badly they might beat that road up. Rather than putting in a new road service and seeing it get beat we at least want to see what kind of activity is going to occur.”