Source: City of Columbia Financial Reports
The Boone County Libertarian Party (BCLP) asks Columbia residents to please vote NO on Propositions 1, 2 and 5 November 8th. The BCLP has not taken a position on Propositions 3, 4, and 6.
The city sales tax rate is higher than 88% of other taxing districts in the state. Columbia's sales tax rates are significantly higher than the sales tax rate in neighboring communities. Columbia's rate is 7.35%, Jefferson City's rate is 6.725%, and Boone County is 5.35%.
The Columbia Sales Tax Comparison shows how the sales tax rate in Columbia compares to neighboring communities and how Columbia ranks statewide.
Here is a breakdown of the current sales tax:
Before 2001, the sales tax rate was still high but less than 7% (6.975%).
Source:
City of Columbia Financial Reports
City of Columbia revenues have increased at an average rate of 5.45% over the last ten year's, 7.43% in just the last year. According to the City Manager, Columbia has been growing at a rate of 1-2% a year. Inflation has averaged 2.5% over the last ten years. City revenues over the last ten years have increased at a rate of 1-2% greater than the combined inflation and growth rate.
Source:
City of Columbia Financial Reports
The city council has set the property tax rate at the maximum allowed by law without a vote of the people, 41.6 cents per $100 assessed value for 2005. This is the same rate as 2004.
According to the city's financial report, revenues from property taxes have increased an average of 14.47% over the last 10 years and more than doubled in the last 4 years from $2.1 million to $4.7 million.
According to the Columbia Board of Realtors, the average home price in Columbia has risen from $167,000 to $194,000 in the last year.
Although the city's property tax rate hasn't changed with this year's real property reassessment, property taxes will rise. Since the last reassessment in 2001, property values in Boone County have risen 15%.
Electric utility rates increased 9.5% last year and will increase 8.5% this year. An average resident can expect about $5.42 tacked on to his monthly utility bill. Source: Columbia Daily Tribune.
The recent citizen survey shows that 86% of respondents were satisfied with Parks & Recreation. Only 27% of respondents were satisfied with flow of traffic/congestion management.
The city currently has a half-cent transportation tax that brought in just over $8.5 million in fiscal year 2005. However, $1.6 million went to subsidize the city bus system and an additional $770,000 was transferred to the airport fund.
The city has been appropriating $700,000 a year towards a new city hall. Source: Columbia Daily Tribune. This has reduced funds available for other projects. The new city hall will cost over $10 million and the city has no plans to let Columbia residents vote on this large project.
When Columbia has one of the highest sales tax rates and the city hasn't set priorities, voters have to at the ballot box on November 8th.
The city currently has a one-fourth cent Parks & Recreation tax. In 2000 the Park & Recreation tax was increased from one-eighth cent to one-quarter cent for the purchase of Stephens Park. This additional one-eighth cent sales tax will expire on March 31, 2006. Approving either Proposition 1 or 2 would extend the one-eighth cent tax for additional years. If both Propositions 1 and 2 are defeated Parks & Recreation would still be funded by a one-eighth cent sales tax.
Proposition 1 - extends eighth cent sales tax for five years
Fund renovations/improvements to existing parks: acquisitions and development of parks, additional trails and green belts.
Columbia has devoted a great deal of money and effort to expand Parks & Recreation over the last decade. Major projects include Stephens Lake Park and the Area Recreation Center.
Columbia has received a $25 million five-year federal grant for trails that is designed to encourage people to commute using non-motorized travel. The federal grant is double what this sales tax is projected to generate over the next five years. The city should wait to see how they could use the federal grant before increasing the sales tax.
Proposition 2 - extends eighth cent sales tax for two years
Funds an ice skating facility and multi-use recreation facility that would include a farmers' market.
This sales tax is collected consecutively to the Proposition 1 sales tax. If both Propositions 1 and 2 pass, this sales tax will be collected after the Proposition 1 tax has terminated after five years. The city is asking voters to approve a tax which won't be implemented for five years yet will likely start construction before funds have been collected.
The city has proposed a multi-use recreation facility whose primary use would be for the farmers' market.
- The city farmers' market competes with the private Boone County farmers' market. Should the city be subsidizing a farmers' market that is in competition with a private farmers' market?
- Will the city farmers' market pay its own way or will taxpayers be making up the difference?
The city has proposed building a new indoor ice skating rink for an estimated 2.5 to 3 million dollars. Those lobbying the city for an ice skating rink claim that there is enough of a market for ice skating in Columbia that the ice rink would pay for itself. Perhaps this would be a good opportunity for a private business. If not, should the residents of Columbia be asked to subsidize an ice skating rink? According to an article in the Columbia Missourian, the Ice rink would need subsidy to operate. Additionally, the city does not have a firm estimate for the cost of this facility.
Would the city build a bowling alley if there weren't one in Columbia?
Perhaps it is time to defer new Parks & Recreation projects while the city catches up on transportation.
Please VOTE NO on both Propositions 1 and 2
Proposition 3 - extends quarter cent sales tax for three years
Funds capital projects for Fire Department (replace older trucks and equipment, build and equip new stations); Police Department (new training facility); replaces emergency storm warning signs.
The city survey shows that of all city services respondents were most satisfied (87%) with the quality of public safety services.
$1 million of the revenues raised will be used for a new training facility for the police department. Cost savings may be realized by constructing a joint city/county facility on county-owned land that could be utilized by both the Columbia Police Department and the Boone County Sheriff Department.
The BCLP has not taken a position on Proposition 3.
Only 27% of respondents to the city survey were satisfied with the flow of traffic/congestion management in Columbia. This was the lowest area of satisfaction of all the city services.
The city already has a one-half cent transportation tax. These propositions would increase the sales tax revenues for transportation.
Since the last time transportation sales taxes were on the ballot there have been a number of changes:
The passage of Statewide Proposition 3 significantly increased funding available for state road projects. This resulted in the Missouri Department of Transportation implementing the Smoother, Safer, Sooner Program. MODOT has accelerated several projects in Boone County, but has yet to approve any new projects.
The proliferation of Transportation Development Districts (TDD) in recent years has made funding available for transportation infrastructure in areas of Columbia that have commercial development. A TDD can increase sales taxes by as much as 1% without requiring approval by the voters. Current Columbia TDDs add one-half of one percent to the sales tax rate in their respective development district.
Proposition 4 - extends quarter cent sales tax for seven years
Funds improvements to major streets to relieve traffic congestion, and sidewalk improvements to provide safe routes to schools and improve accessibility in the downtown for persons with disabilities.
The BCLP has not taken a position on Proposition 4.
Proposition 5 - additional eighth cent sales tax for ten years
Funds improvements to major streets to relieve traffic congestion, and sidewalk improvements to provide safe routes to schools and improve accessibility in the downtown for persons with disabilities.
Columbia has received a $25 million five-year federal grant for trails that is designed to encourage people to commute using non-motorized travel. The federal grant is almost double what this sales tax is projected to generate over the next seven years. Some of the grant money may be used for transportation costs such as pedways. The city should wait to see how they could use the federal grant before increasing the sales tax.
As shown above the city has neglected spending on transportation the last five years, instead putting their highest priority on Parks & Recreation. Should the city be rewarded for this by giving them more money to fix the problem caused by their neglect?
Please VOTE NO on Proposition 5
Proposition 6 - Development Charge Increase
Increases over five years the existing development charge on all new construction from 10 cents per square foot to 50 cents per square foot. Funds arterial and collector street improvements.
The BCLP has not taken a position on Proposition 6.