If the city sales tax increase to support parks operations passes, Owensville city residents will still be paying personal property and real estate taxes to generate debt service funding for a prior street bond issue and the waterpark construction.

You will also continue to pay personal property and real estate taxes to support the city’s general revenue fund.

The debt service fund will continue at an annual collection of somewhere in the range of 71 to 72 cents per $100 of assessed valuation until June 2020 when the final street bond payment is made. Starting in June 2021, the debt service on the waterpark will include principal. The city is currently only paying interest on the waterpark bond issue. 

City residents will also continue to pay a portion of their personal property and real estate assessment into the general revenue fund. That figure is currently approximately 33.58 cents per $100 of assessed valuation and will continue somewhere at, or near, that rate depending on local assessment figures. That is determined in August when levy hearings are set.

That figure — 33.58 cents per $100 assessed — is also equal to what residents and non-resident property owners pay to support park operations. Only city residents will be voting on this issue.

If the sales tax ballot question is approved, city residents will no longer pay the approximately 33.58 cents per $100 of assessed valuation which is historically —since 1945 — and currently designed for park operations.

One example cited in a handout distributed by elected city officials at two recent public informational open houses held away from City Hall was a savings of $21.39 assuming a 2018 residential property appraised at $33,510 with an assessed value of $6,370. If the sales tax increase is approved, the owner of a residence with those values would not pay the portion of their city tax for parks operations which would be $21.39.

If the sales tax increase is rejected, there will be no decrease to personal property and real estate taxes assessed to city residents and non-resident property owners. The two other examples given were for residences as follows:

• An appraisal of $92,120 with an assessed valuation of $17,500 translates to a tax savings of $58.77.

• An appraisal of $249,330 with an assessed valuation of $47,370 translates to a tax savings of $159.01.

“We could legally add a quarter cent sales tax increase without voter approval,” Mayor John Kamler told one of the people who attended the city’s informational session last week at the Owensville Senior Center. “But we wanted to put it to the voters.”

Another informational session about the proposal is scheduled at 7 p.m. tonight (Wednesday) in the second floor meeting room at Legend’s Bank.

The city currently collects a quarter cent sales tax for park operations. The city’s sales tax rate is currently 8.35 cents on the dollar. The increase would make the city’s sales tax rate 8.6 cents on the dollar.

City officials cited a recent survey where residents asked for more community activities offered through the park system. Dana Hampton, president of the Park Board, and Manny Medeiros, vice president, both said the majority of their board supports the tax increase as a means to fund a parks and recreation director position.

Both said the demands on those serving on the Park Board to run operations such as the golf course and waterpark are becoming too much for volunteers.  Both said a professional parks and recreation director would benefit current and future board members and the citizens.

Both admit, however, there are members of the Park Board who do oppose the proposal which will mean historic changes for how the board operates.

The tax increase proposal means an end to the Park Board serving as an administrative board with full authority to control spending of designated park funds generated from the real estate and personal property taxes. Voters approved a two-mill tax to support park operations in 1945. Along with the tax came the formation of the administrative Park Board.

The Park Board would become an advisory board. Members would remain appointed as they currently are but will not control how funds are spent. They would provided input to the elected officials on the operation of the park system.

Elected city officials two years ago asserted their intent to control spending of the sales tax revenues, citing state statutes and advise their attorney gave them over who controls those funds.

That effort has also been one pushed by the Missouri Municipal League and attorneys representing municipalities across the state.

City officials estimate the increase in the sales tax revenue by approximately $50,000 which will allow for the creation and “partially fund” the new parks and recreation director position and add new programs and classes for the public.

The sales tax increase will be shared by anyone who buys products or services in Owensville. All of the new funds raised will go to park operations. 

A quarter-cent sales tax for park operations was approved by voters in 2006.

City elected officials have repeatedly said there are no intentions to take over control of a bequeathed gift to the park system by the late Milford H.H. Winter. That fund, which has grown to $1.1 million, is controlled by the Park Board and is invested in limited exposure funds as mandated by state statute.

The Park Board can only spend earned interest over the first 10 years of the investment and is still at least two years away from being allowed to spend any of the initial donation of nearly $930,000, as cited in the will under trust. 

According to a city handout about the ballot question: “Milford Winter’s will specifically indicates his money was left for the purpose of taking care of Owensville Park System. That will not CHANGE.”