Despite concerns over higher sales tax, city has ‘no recourse’ since it was voter approved

By Dave Marner, Managing Editor
Posted 8/24/22

City Administrator Randy Blaske shared his concerns Aug. 15 when Owensville aldermen were tasked with approving an intergovernmental agreement that Gasconade County municipalities were asked to sign …

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Despite concerns over higher sales tax, city has ‘no recourse’ since it was voter approved

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City Administrator Randy Blaske shared his concerns Aug. 15 when Owensville aldermen were tasked with approving an intergovernmental agreement that Gasconade County municipalities were asked to sign to accept their portion of a half-cent sales tax designated for law enforcement.

Blaske’s main concern, he said then, was the “up to” 25 percent language on the agreement which spelled out each community’s allocation of funding by percentage based on the 2020 census. Owensville, with a population of 2,757 residents according to the latest Decennial Census posted by the U.S. Census Bureau, means the city is to receive 46 percent of the 25 percent of the sales tax being divided up between five municipalities with police departments.

Mayor John Kamler was absent due to an overnight work obligation but joined in the meeting briefly via telephone and told the board, “It’s up to you what you want to do.”

He has previously said he didn’t think the city needed the extra money and didn’t like that the city’s tax rate will now be above 9 percent.  Rob Borgmann, a Ward 2 alderman and president of the board, whose house is on the market for sale, told the board he shares Kamler’s thinking on the new tax.

“I think we need to be looking into it more heavily,” said Borgmann.

Blaske reminded aldermen that this issue had already been voted on across the county in the April 2022 Municipal Election. City Marshal Robert Rickerd, who was elected to his fifth term this past spring, noted that voters in both of the city’s wards had voted in favor of creating the half-cent sales tax designated specifically for law enforcement operations across the county.

And, the city spent several months discussing a proposal which would eventually lead to approval earlier this year of a new hiring plan to either reimburse police patrolman candidates for their certification training or pay for them to attend academy training. Due to shortages in police applicants over the past two years, three patrolmen have been employed by the city in 2022 under these agreements. 

Two, Paul Baldwin and Conner Pritchett, started work Monday. A third, Patrick Dildine, began work in early May. Each will guarantee a specific number of years of service to the city in exchange for their education fees.

Ward 1 Alderman Kevin McFadden wondered about how the tax was collected and distributed and asked if there were rules established.

Jerry Lairmore, the county’s Southern District Commission who lives near Owensville, said disbursement was by percentage of population and rules governing the tax were established by the state.

Blaske offered his “economics 101” lesson noting that the minimum wage had increased 30 percent in the times since he was hired — from $7.85 an hour to $12 — which translated into an increase in the amount of sales taxes being paid in since people had more money to spend. The county had also received voter approval for a use tax paid for online purchases.

Blaske offered the opinion he didn’t “think the public was educated well enough” when April 5 voters approved the measure on a 54.61-percent margin, 1,143 to 950. 

He went on to add, “The city doesn’t need it. The city needs extra money like it needs a hole in the head.”

He shared concerns previously made at the county level that there was no guarantee the county’s commission would allocate the full amount currently budgeted for the sheriff’s patrol (around $950,000) from the county’s General Revenue fund in addition to 75 percent of the projected $900,000 to $1 million  anticipated from the new sales tax.

“Their existing funding is not protected by anything,” Blaske added.

Cathy Lahmeyer, a Ward 1 alderman, noted that people’s lifestyles dictate their spending habits. Sometimes they miss their mortgage payments and get behind when they buy other items.

McFadden shared an anecdote from the grocery business he’d worked in where people buy steak or hamburger depending on economic conditions and when they have funds available each month.

Blaske reigned the group back in, telling them the city’s attorney told them there was “no recourse” since there was a public vote to approve the tax.

Their only remedy, he told the board, was to see if  they could have the “up to 25 percent” removed from the agreement.

“People made the decision even though  Hermann voted against (the tax),” said Lairmore.

In just under 20 percent voter turnout, Gasconade County residents approved the sales tax by a 54.61-percent margin, 1,143 to 950. 

Voters in the Owensville’s first ward approved the measure 94 to 79 (54.3 percent to 45.66 percent) while Ward 2 voters favored the tax 79 to 55 (58.98 to 41.04 percent). Turnout in each ward was around 18 percent.

Voters in Rosebud voiced strong support for law enforcement with a 77.9 percent approval of the tax — 60 votes for the tax and only 17 against.

Voters in the Bland/Rural Canaan precinct gave a 66.67-percent approval rating for the tax on a 92 to 46 vote in a 12.43-percent turnout. Redbird voters approved the tax question by a 62.22-percent margin with 28 in favor of it and 17 against. 

In Rural Canaan, approval of the tax was voiced on a 150 to 103 vote margin (59.29 to 40.71 percent). There, only 16.12 percent of the 1,575 registered voters made it to Owensville High School to cast ballots.

Turnout was just above 12 percent in the Tayloe precinct south of Owensville in the Bem community. With limited items on their ballots, 72 voters cast them and 41 (56.94 percent) were in favor of a tax and 31 voiced opposition (43.06 percent).

Opposition to the proposal was strong in Hermann where city officials had argued the county seat should receive a larger share of the money. The sales tax proposal failed in Wards 1 and 2 and in the Little Berger precinct, which covers rural Hermann residents. These were the only three precincts to vote against the ballot issue.

In Hermann Ward 1, voters rejected the issue on a vote of 119-158 (43 percent to 57 percent). Ward 2 voters defeated the measure 122-126 (49.2-50.8). Little Berger voters turned thumbs down by a vote of 87-99 (46.8-53.2).

There were two precincts in which voters broke down the middle — Drake voters split 40-40 while voters in the Gasconade/Stolpe precinct posted a tally of 25-25.

The county-wide tax is scheduled to become effective Oct. 1, according to the ballot language approved by voters.