By Phyllis Schaltenbrand
Missouri Senate Bill 272 was introduced by Senator Chuck Gross ® St. Charles. The bill and calls for limiting all Missouri home dock cities use of gaming funds for the operation of their cities.
Now Councilmen Brown, Riddler and Gieseke plan to introduce a resolution to attempt to halt the bill’s progress.
Shortly after introduction, Senator Gross cut a deal with other legislators in the Senate, exempting every City in the State except St. Charles. The other Senators, with gambling casinos in their cities, did not want their cities included in, or to be restricted by, the bill.
This move is what has many on the Council upset. “If this was such a great idea, why only St. Charles? Why did Gross allow every other Senator the chance to remove their City from the bill?” Councilman John Gieseke remarked to the First Capitol News.
“This bill takes local control away from St. Charles and places it in the hands of those in Jefferson City. The day Gross fixes the school funding problems and has real tax relief for seniors funded without reservation, maybe then he can say he has an idea about the City’s finances. He was elected to represent us at the State level. If he wants to ruin our budget like the state’s budget he can run for the City Council,” commented Councilman Joe Koester.
The bill would have a severe impact on the City’s operations. To date, the City has collected $102 million in gaming taxes and has spent over 90 percent of that money on Capitol Improvement Projects in the City. Over $6 million of gaming funds were spent on the newly constructed convention center.
Over the past three years, Mayor Patti York has used a portion of gaming funds to help balance the budget because other revenue sources have decreased. “Every City in the state of Missouri understands how hard the past few years have been,” commented Councilman John Gieseke. “The State continues to burden us with the need for higher property tax bills because they are failing to fund the schools. Now Gross is grandstanding, telling us the residents are not experiencing the full benefits of gaming. He’s right if he looks at the budget he controls at the state level. Here at the City level, we have been able to keep our service levels high without major layoffs. We on the City Council understand we need to decrease the use of gaming fundsfor salaries, but we need the economy to turn around first”.
According to testimony given to the Senate by Allan Williams, the City Administrator, and Karen McDermott, City Finance Director, “The schools and other taxing entities would be sorely affected. This bill will have a negative impact on all our tax incremental financing projects including Fountain Lakes, Mark Twain Mall and the Convention Center project. The TIF districts will generate less incremental property tax revenues. The pass through to the schools will be less, and the debt will pay off slower or not at all.”
Council President Riddler told the First Capitol News, “I have a portion of my ward, as does Councilman Gieseke, within the Orchard Farm School District. The Orchard Farm School District was forced to ask for a tax increase because the State’s school funding formula does not provide enough revenue to support their schools. This change would decrease the amount of pass through generated at Fountain Lakes and would create a larger burden on the residents.”
Councilman John Gieseke continued, “This is the way big brother has been able to increase taxes without having to take the heat for it. They don’t fund their responsibilities and this forces the schools to ask for more and more as they create laws in Jefferson City that hurt all of us and act like they did us all a favor. The tax increase isn’t on their record yet. They basically forced the local taxing districts to increase taxes.”
In other testimony the City officials told the Senate, “The City has used the funds for many street improvements, facilities, parks, storm water projects, economic development, enhanced service levels in police and fire departments, increased reserves to appropriate levels and enhanced arts and cultural activities.” The testimony continues, “It is unclear what benefit the legislation, as proposed, brings the citizens of St. Charles or the State of Missouri.”
Councilman Mark Brown told the First Capitol News, “That statement tells it all. I firmly believe the City Council is in the best position to decrease the use of gaming funds for ongoing expenses. The Council began the process in the last budget. This Council took over $1 million of gaming money that went to recurring cost out of this budget and we will get more with the next budget. I believe in making the City more accountable and have been working toward that goal. It confuses me why Senator Gross, who was elected to represent the taxpayers of our area, has created legislation that would have such a detrimental impact on St. Charles. If passed, this bill will force us to cut services and raise taxes. I strongly urge Gross to reconsider, think about the people he represents, and not hurt those he represents.”
Gieseke stated, “We are committed to decrease the day-to-day cost of running the City whether it is paid with gaming funds or general funds. I would like to change to a merit based pay system, change the way our insurance is handled, and decrease the redundancy that exists in our processes that add cost without benefits.”
The resolution will be introduced Tuesday evening at the St. Charles City Council meeting. The City of St. Charles Finance Director Karen McDermott and City Administrator Allan Williams prepared the referenced testimony to the State.
