Staff:
Agenda:
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Lisa Mills, Finance Director
12/18/2023 |
AGENDA REPORT
Cape Girardeau City Council
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23-274
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SUBJECT
The City of Cape Girardeau City Council considers calling an election and placing on the ballot at the April 2, 2024 General Election a proposal to increase property taxes.
EXECUTIVE SUMMARY
The proposed ballot measure would allow voters to consider an additional property tax. For every $100.00 in assessed property value, the proposed tax increase would raise the rate approximately $0.25 (25 cents).
If the ballot measure is approved by voters, the City's combined total property tax rate for all purposes would be $0.6173, which would consist of the City's health rate of $0.0573 plus the general municipal rate of $0.56.
The additional tax revenue approved by the voters would be dedicated to public safety to pay and provide benefits for police officers and firefighters.
BACKGROUND/DISCUSSION
The General Fund Revenue Budget provides the funding to pay and gives benefits to approximately 300 full time employees working for 22 departments in the City of Cape Girardeau. The largest of these departments being the police and fire departments. These two departments comprise public safety, and total approximately 190 employees. The expenditures for public safety require 58% of the overall General Fund Revenue Budget.
Essential City services including Street Maintenance, Engineering, Planning and Inspections, Park Maintenance and Administration are also funded by the General Fund.
Currently the property tax revenue is 7% of the General Fund Revenue Budget, and the current property tax rate in the City of Cape Girardeau is among the lowest of comparable cities across the state of Missouri.
FINANCIAL IMPACT
The proposed tax increase, if supported and approved by the voters is estimated to fund an additional $1.9M - $2M in revenue. If the additional tax is passed by the voters, the City will propose an initial increase of 8% to the current pay plan for police officers and firefighters. The resulting pay increase and related benefits, assuming no change in the current level of employees, would cost approximately $1M. The dedicated tax remaining would be used to provide additional increases during the next years allowing some additional pay plan increases dedicated to public safety in the future.
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