Council Holds Public Hearing To Certify City Tax Rate;

City Council Keeps Promise To Only Levy What Is Needed From Prop. C

Kirkwood, Missouri -- Thursday, August 02, 2007 – At tonight’s City Council meeting, a public hearing will take place regarding the certification of the property tax rates for the City of Kirkwood. These are property taxes that already have been authorized by voters in past elections. The public hearing process is an annual occurrence each August, as the city must submit the tax rates by September 1 of each year to St. Louis County. St. Louis County collects the taxes for all personal and real estate property in Kirkwood.

There are four categories that the City of Kirkwood can legally collect with voter approval:

Ø      General Government. Just approved on June 5 of this year, Proposition C authorized 34 cents to go to the General Fund to restore and maintain core services, including restoring seven public safety positions; fairly compensating city employees, including our police, fire and paramedics; and shoring up street repairs. While voters authorized 34 cents, the City Council committed to levying in 2007 only what was necessary to generate the $2 million that was needed. Based on County data, the 2007 levy that is proposed for the Proposition C tax is 27.6 cents. The other tax rates will be set at or lower than their 2006 tax rates.

Ø      Police Officers’ and Firefighters’ Pension Funds. Used to pay for the citizen-approved funding of a major benefit for the city’s commissioned police officers and firefighters.

Ø      Kirkwood Parks. Used for maintenance and operation of all of the city’s 11 parks. The city has more than 300 acres of park land throughout the city. Voters actually approved a park tax of 20 cents; however, the City Council authorized a reduction in this tax from 20 cents to the current 13 cents when voters authorized the ½ cent park sales tax in 1998. This sales tax helped to fund the construction of the aquatic facility and the enclosure of the ice rink.

Ø      Debt Service. Used to pay on the principal and interest on the citizen-approved general bonded indebtedness of the city, including the improvements to the fire department that voters authorized during a November 2000 bond issue. 

Special Business District Tax Rate

The Special Business District (SBD) property tax is paid on commercial real estate by commercial property owners or merchants located within the SBD boundaries. The SBD is bordered by Clay on the West, Adams on the North, Taylor on the east, and Woodbine on the south. Owners of commercial properties located within the district authorized this special property tax years ago and only businesses within this area pay the dedicated tax. The monies are used to pay for an executive director who oversees specialized marketing efforts geared toward these businesses. A separate SBD Board, whose members are appointed by the City Council, runs the SBD and its related budget.

Kirkwood Public Library Tax Rate

The library is a separate taxing entity from the city and the SBD. Like the city, the library’s tax rate must be certified each year. It is the Council’s responsibility to certify the library’s rate, although the library’s Board of Directors are the ones who have full discretion over the operation, funding, and financial liabilities of the library. The City Council’s sole connections to the library are the duties of appointing members to the library’s Board and certifying its property tax rate each August.

State Law Requires Separate Tax Rates

Since 2002, a state law has passed that requires separate tax rates for residential, commercial, agricultural and personal property rather than the old method of one rate for all classes. The reason the State Legislature passed this law is to help reduce the property tax burden on homeowners in areas where residential assessments were increasing at a faster rate than commercial assessments, leading to higher tax bills for homeowner’s, particularly the elderly.

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