City’s level property tax has history of financing large projects

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Like all municipalities, the City of Springfield faces many opportunities and tough challenges. New police and fire facilities must be built to keep pace with demand.

Police cars and fire trucks must be replaced, and the city’s infrastructure must keep pace with rapidly changing technology. Core services, such as police and fire, are funded by multiple sources, but chiefly from sales tax collected for the City’s General Fund.

Sales tax is a volatile revenue source and one that is impacted by many unpredictable factors. Historically, very few capital improvement projects have been funded through the General Fund–as the General Fund is primarily used for ongoing, operational expenses. Revenue collected from the City’s 27-cent property tax has funded major capital improvements for many years, without increasing the tax rate.

In 1995, Springfield citizens voted to maintain and “keep level” the tax levy and use the revenue collected to fund the building of new fire and police stations, stormwater management structures and to open amenities such as Jordan Valley Park and the Grandstand and E-Plex at the fairgrounds. Voters renewed referendums to maintain what is referred to as the Level Property Tax in 1999, 2001 and 2004 and the projects have been completed as promised and with no increase in the tax rate.

It still remains to be 27 cents for $100 of assessed value  (19 percent of appraised residential property value;
32 percent of appraised commercial property value). On Nov. 7, voters will once again be asked whether or not to maintain the current property tax rate in order to build newly identified capital improvement projects and purchase public safety equipment and vehicles.

The tax generates about $8.5 million a year and is used to primarily fund projects via issuance of debt, with bonds issued and paid off over multiple years. As projects become completed and debt gets paid off, more “headroom” becomes available, allowing for new projects to be bonded and paid for. The current tax will sunset when the last bond payments are made, which is presently expected to occur in 2031.

To address the current headroom available, as well as to plan for the future, City Council voted to put the continuance of the Level Property Tax on the ballot and to identify projects to be funded by these continued revenues. Although capital needs have historically been the focus of the Level Property Tax, the 2017 proposed continuation and new project package includes the capability to address critical ongoing needs as well – such as the lifecycle replacement of police cars and fire engines and additional police and fire staff. The City does not currently have a funding source for most of its lifecycle replacement needs. In order to ensure ongoing revenue to meet some of these replacement needs and also to support additional public safety staff, the measure does not include a sunset.

City Council is anticipated to vote Oct. 2 to ask the Citizens Sales Tax Oversight Committee (CSTOC) to review the Level Property Tax collections and expenditures. The committee currently reviews and monitors the collection of the 1/4-cent Capital Improvements Sales Tax revenues, the 1/8-cent Transportation Sales Tax revenues, and the 3/4-cent Police and Fire Fighters Pension Fund Sales Tax revenues.

PREVIOUSLY FUNDED PROJECTS

Funded projects are geographically dispersed throughout the city. They include, but are not limited to: Police and Fire Facilities: Six fire stations and the Regional Police-Fire Training Center. Stormwater and Other Infrastructure: In 2017, Public Works identified $700 million in unfunded stormwater management needs.

LPT funded

  • $14 million in 1999

  • $15 million in 2001 and

  • $13 million in 2004.

PROPOSED PROJECTS

Fire

  • A new West Central fire station (No. 13) and staffing.
  • A new West Springfield fire station (No. 14) and staffing.
  • The replacement of fire stations No. 7 and No. 4.
  • Needed equipment for Fire Department’s facilities and employees.
  • Repairs and upgrades for existing fire stations.

According to data compiled by Fire Chief David Pennington, the West Central neighborhood has the highest incidence of fires and a lack of a fire station there requires the other stations throughout the city to respond to fill in the gap of service. “This negatively affects response times and the safety of firefighters and citizens across the whole community,”  Pennington said.

Police

  • Lifecycle replacement of police vehicles
  • Repairs and upgrades for existing police facilities
  • Police equipment
  • Additional police investigators
  • Evidence storage facility
  • Contribution to a City-County jail expansion (if a County sales tax passes).

If the Level Property Tax is renewed, the following projects will be funded, over time:

  • A fully staffed Police Family Violence Unit to investigate domestic violence offenses.
  • A fully staffed Police Family Violence Unit to investigate domestic violence offenses.
  • Seven additional property crimes investigators to conduct follow-up investigations on the largest number of cases/crimes; two for vehicle thefts, one for financial crimes, one pawn shop Investigator, and three to investigate juvenile crimes.
  • A new vice unit to investigate crimes involving human/sex trafficking, prostitution, gambling and alcohol.

Stormwater and Other Infrastructure

Level Property Tax revenues are also used for stormwater improvements and maintenance and renovation of existing equipment and buildings. Proposed projects include:

  • Infrastructure improvements to minimize flooding and restore the natural environment around Jordan Creek.
  • Infrastructure improvements to minimize flooding and restore the natural environment around Jordan Creek.
  • Neighborhood stormwater improvements, which will be carried out in each quadrant of the City.

Repair and replacement of stormwater infrastructure designed to reduce flooding to streets and neighborhoods.• Repair and replacement of stormwater infrastructure designed to reduce flooding to streets and neighborhoods.• Floodplain acquisition to reduce potential stormwater harm to people and structures. The City of Springfield believes strongly in good stewardship of its own municipal facilities. These facilities are investments made by the community. The 2004 Level Property Tax funded $5.5 million for City facilities improvements, including the City’s Public Works’ Service Center which extended the life of equipment and vehicles through site improvements, storage and fleet maintenance.

The new referendum proposes to fund additional maintenance and upgrades to City facilities, and the construction of a new Public Works grounds operations facility in south Springfield. It also includes:

  • Needed equipment upgrades and repairs to the storm siren system.
  • Needed equipment upgrades and repairs to the storm siren system.
  • Renovations to Historic City Hall.

A vote to keep the Level Property Tax will  not increase the current property tax paid by Springfield citizens. Keeping the tax level allows the City to plan for a consistent amount of revenue for the proposed projects.

If you would like more information about the Level Property Tax proposal or any of the proposed projects, visit springfieldmo.gov/election or follow us on Facebook at CityofSGF.

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