Mayor asks residents to approve property tax increase in St. Paul
Tax would generate $31,000
However, Mayor Lloyd Reeves said an 8.5-cent property tax increase is "absolutely necessary to keep our city functioning."
If approved by a simple majority of voters, the tax increase would be in effect for four years.St. Paul's only revenue stream comes from a very low property tax, which was rolled back even farther by the Hancock Amendment, a state law that prevents municipalities from receiving revenue windfalls from property taxes. The cost of running the small municipality has increased drastically due to current economic conditions, such as record-high fuel prices.
"Nobody hates taxes more than I do," Reeves said. "But the government doesn't pay for anything. Taxpayers do. And we can't have what we don't pay for."
Unlike most municipalities in St. Charles County, St. Paul doesn't have much staff or equipment to speak of; three computers last year were considered a major expense. According to Reeves, it doesn't have much of a city hall, and most aspects of government have been contracted out to the county or other municipalities.
"We don't have a lot of expenses," Reeves said. "You won't find a lot of equipment or staff because we have contracted our services out. However, that costs money. We pay for street lights, water tower maintenance and other contract services, and prices have gone up dramatically. Being retired, I have to watch my money real close. I hate taxes, and in asking residents for this, I'm doing something that goes against my grain, but it's vital and I'm going to bite the bullet like everybody else. We are in disparate need of a city hall - not that this tax could begin to cover something like that - and we have to maintain basic services."
The money the tax would generate is only about $31,000 a year, Reeves said.
"I know that's a really small amount when you compare it to single departments in other towns," Reeves said. "It's insignificant when compared to their entire budgets, but the tax is uncomfortable for us. I'm proud to say we have been very frugal with our dollars and have a savings, so to speak, but it won't be there in another five years. If we don't pass this, I don't foresee immediate problems, but when we don't have that cushion to fall back on, we're going to have to make some very hard choices, and I know that I don't want to have to make them and neither does anyone else on this board.
"It's not a lot of money, but it would sure help out," he said. "I want to see St. Paul survive, but I also understand the situation everybody is in. The cost of gas and diesel has gone through the roof, and with the other economic factors we are faced with, the basic cost of living had gone up dramatically. We know this is a difficult decision, but we wouldn't ask our residents to do this unless it was absolutely necessary."
