Crestwood and Sunset Hills are facing a similar problem as they prepare their 2012 budgets — revenues are not keeping up with expenses.

As a result, some tough decisions have to be made, including eliminating pay raises for Crestwood and Sunset Hills employees.

Crestwood

"It's pretty simple," Crestwood City Administrator Petree Eastman said. "We don't want to make any cuts. Currently (Crestwood) is operating at a negative balance. We would love to give our employees raises. It's been a few years, but we can't."

Crestwood's total budget is $11.9 million in expenditures with $11.1 million in revenues. Reserve funds will cover the deficit. The biggest costs are the public works department at $2.9 million, the police department at $2.8 million and the fire department at $2.7 million.

The biggest source of revenue is taxes at $5.8 million. That includes sales, utility and property taxes.

The future of Crestwood Court, formerly known as Crestwood Plaza, is the big question mark. Since the mall has fallen on tough times, the city has lost about $2 million in annual sales taxes, Eastman said.

The property features art galleries, craft shops, and a theater group attracted by low rents. Centrum Properties, owner of the property, has discussed various redevelopment proposals.

"We're waiting for a decision," Eastman said. "In these times, it's tough to start to redevelop because of tight credit. In the meantime, we can't expect to see much revenue from Crestwood Court."

For information on the Crestwood budget, go to www.ci.crestwood.mo.us and look under "City Administrator's Report."

Sunset Hills

Sunset Hills' employees will not receive pay raises this year, City Clerk Laura Rider said. This would be the first time without raises in the 16 years that she has been city clerk, she said.

"It's just a reflection of the economy," Rider said. "That's all you can say."

The city's 2012 General Fund budget calls for $6.932 million in revenues and $6.93 million in expenditures. It leaves the city $2,000 in the black.

"There's not a lot of room for anything more," Rider said.

The city's biggest expenditure is the police department at $2.3 million. The biggest revenue source is taxes and fees at $5.3 million.

Sunset Hills does not have a major retail center. Most of its businesses are medium or small in size.

"If one of them fails, we don't feel it so much," Rider said.

For information on the Sunset Hills budget, go to www.sunset-hills.com.