BonnerSprings.com

With a $175,000 shortfall in the current year’s budget due to property tax adjustments, Edwardsville officials have been searching for ways to prop up the city’s coffers.

City Council member Mark Bishop has one idea.

“I would like for the staff to start investigating a proposed sales tax hike for public safety,” Bishop said.

Bishop’s proposal, which he brought up during the May 26 Edwardsville City Council meeting, is for the city to raise its sales tax from the current 7.3 percent. Offering two options, Bishop said if the sales tax were raised one-fourth of a cent, revenue would increase approximately $60,000 to $75,000 per year. If the sales tax was raised half a cent, a $120,000 to $150,000 per year increase could be seen.

Money earned by the increased percentage would then be put in a special fund specifically for public safety equipment, which, Bishop said, would allow more breathing room in the general fund.

“I know that in our city, we don’t have a lot of services to offer because of our size, but we do have a full-time police and fire department, and that is one thing that we need to fund,” he said. “There’s a lot of demand on the general fund, and this could help.”

Bishop said he began his research by looking at fees, such as trash, building permits and community center rental, of surrounding cities. While he noticed Edwardsville was lower in many areas, he said those low fees could be attracting people and business to the city.

That’s when he came across the sales tax figure. According to a spreadsheet Bishop presented to the council, surrounding cities have higher sales tax than Edwardsville. The Bonner Springs sales tax is at 8.050 percent, Shawnee is at 7.775 percent, Lenexa is at 8.025 percent and Kansas City, Kan., is at 7.55 percent.

“I just think (the increased sales tax) could relieve a lot of pressure off the general fund right now,” Bishop said. “Not only will the burden be shared by everyone in the community but also by the whole surrounding area that buys things in Edwardsville.”

Bishop said the salaries of the police and fire departments would remain in the general fund, while the purchase of equipment would move to the special sales tax fund.

City Administrator Michael Webb said he thought the sales tax idea was an interesting suggestion and had in fact planned to bring it up himself when talks of the 2010 budget began in a few weeks.

As of now, Webb said he would begin researching the process of increasing the sales tax. He said, however, that knows the issue would require a citywide election for approval.

One consideration the city will have to give to the issue, Webb said, is the cost of a special election and if waiting on the proposal until the regular elections in November would be the more cost-effective solution.

“I think it’s a good concept. Generally people tend to be supportive of the public safety sector of police and fire,” Webb said. “I think the public would be more receptive to (a sales tax increase) rather than mill levy increase.”

Webb said he would most likely have more information about the subject to present to the council at the June 22 meeting.

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