Letter to the Editor: Lake Saint Louis Tax Vote Aug. 6

(The following was written and submitted by Lake Saint Louis Mayor Ralph Sidebottom)

The Lake Saint Louis Board of Aldermen has placed Proposition P on the August 6, 2013 ballot.  This Proposition asks voters to approve a ½ cent Capital Improvement Sales Tax dedicated to the Public Works and Parks Departments for safe, well maintained streets and recreational amenities.  Funds can only be spent on street construction maintenance and new construction or on park amenities such as playground equipment and bathroom renovations.  This tax will sunset in 10 years unless re-approved by the voters at that time.

Voters approved the issuance of bonds for street improvements in 2006.  Some of that money was leveraged by the City to receive an additional $6,139,487 in grant money.  Bond money was instrumental to upgrade our streets during the past 5 years but it has been spent.  Going forward, the City has the ability to spend approximately $700,000 per year for street construction and repairs.  This is not enough money to meet our needs.

The City’s Public Works Director has calculated the City needs to spend $1.6 million each year to repave existing streets and meet our grant application matches.  Current funds allow us to pave asphalt streets every 37 years and concrete streets every 54 years.  The American Public Work’s Association suggests asphalt streets be repaved at least once every 15 years and concrete streets every 30 years.  Passing this Capital Improvement Sales Tax will get us to this schedule.

We also have limited funds available for Park infrastructure improvements.  Developers contribute $900 for every lot they plat.  During the years 2000 through 2007, developers paid $1.2 million to Park revenue.  Homebuilding slowed in 2008. Developers paid the City a total of $10,000 between 2008 and 2011 for Park infrastructure.  Restrooms are only open from April through October.  Children’s playground equipment in the parks has been removed because it no longer meets safety codes.  Veterans are seeking a water feature in the Veterans Park.  Residents have suggested park improvements which will require additional funding.  Passing the Capital Improvement Sales Tax will allow the City to move forward with park improvements.

Lake Saint Louis’ local municipal sales tax rate is 1.5%.  This compares to Wentzville’s rate of 2.5%; O’Fallon 2.0%; St. Peters 2.0% and Cottleville’s 2.0%.  Only Dardenne Prairie and St. Charles have a sales tax rate similar to Lake Saint Louis.  If passed, the Capital Improvement Sales Tax will annually generate $900,000 for street improvements and $400,000 for park improvements.  A substantial portion of sales tax collections are paid by people who live outside the City and who do not pay property taxes but do use City streets. 

Money from the Capital Improvement Sales Tax can’t be used for salaries or other general operating expenses.  State law requires the money be “deposited in a special trust fund and shall be used solely for capital improvements … for so long as the tax shall remain in effect.” 

Our overall financial condition is good.  Lake Saint Louis enjoys a Moody’s financial credit rating of Aa2 which they define as “of high quality and are subject to very low credit risk.”  The public accounting firm Rubin Brown surveyed 39 metro cities and Lake Saint Louis compares very favorably.  The survey listed our 2012 expense per capita at $772 while the 2011 metro city average was $1,074.  We offer a good balance of value for services rendered and taxes collected.

I encourage you to visit the City’s website to learn more about our financial condition.  You can also learn more about the proposed Capital Improvement Sales Tax by visiting www.lakesaintlouis.com.  Brochures discussing the proposed tax will also be distributed.