Residents hear pitch for public safety sales tax during ‘Let’s Talk Local’ discussion

COLUMBIA, Mo. (KMIZ)

Residents in Columbia got a closer look at a potential tax increase during a “Let’s Talk Local” meeting on Thursday evening.

City leaders said the proposal could mean higher taxes, but argue it would help better support police and fire services across the community.

During the meeting -- which was held at the Sports Fieldhouse on Philip Farm Road -- officials presented data showing the city’s expenses are beginning to outpace its revenues. Assistant Finance Director Jim McDonald said one possible solution is adding a one-cent sales tax.

McDonald provided a breakdown of what the proposed tax could look like for residents. For example, a $4 purchase would add about 4 cents in tax, while a $12 meal would add 12 cents. A $100 purchase would add an additional dollar.

Leaders said the additional funding could go toward several public safety needs, including increasing pension funding for police officers and firefighters, upgrading aging facilities and improving staffing levels.

"Right now, it's [pension] sitting at about a combined ate of about 56% and our goal with this public safety sales tax would be to get it up to 100%, which would decrease the city's cost and allow us to use that savings to fund other public safety needs," McDonald said.

City officials previously said the tax could help close the $156 million funding gap for police and fire retirement funds. The city believes the 1% sales tax would bring in an additional $38 million for public safety departments by the 2028 fiscal year, previous reporting indicates. That money would go into a separate and dedicated account; public safety departments would also still receive about $60 million in general revenue funds.

Results from the city’s survey presented in January indicate there’s some support from residents for a tax that would lead to hiring more police officers and firefighters.  

Under its public safety priorities, the city aims to add 50 police officers and 40 firefighters over the next four years. Plans also include building a new police facility, adding 2 new fire stations with equipment, purchasing police vehicles, renovating 3 existing fire stations, and investing in updated police and fire technology.

City Councilman for the 5th Ward Don Waterman said the additional staffing would help bring the city up to speed.

"The 50 police officers would catch us up to where we really should be for a city of our size." Waterman said. "The 40 firefighters would let them add an additional person with each to each station for each shift to give them a better response,"

According to Columbia Police Department Assistant Chief Mark Fitzgerald, the police department is currently operating out of a building that is more than 100 years old and in need of significant renovation.

"We’ve got people working in closets,” Fitzgerald said. “We’ve turned all the closets in the police department into offices because we’re constrained on space."

Fitzgerald said the department spent $80,000 dollars last month on a HVAC system.

"The current police headquarters downtown is pretty much at the end of its life." Waterman said.

Fitzgerald also said the department is in need for more officers, calling current response times “embarrassing” at times due to staffing shortages. He shared that just the other day, a dangerous, life-threatening situation took officers 3 to 4 hours to respond. He proposed adding 6 officers a year.

City leaders proposed adding 6 officers per year to help address staffing shortages, while also increasing pay to remain competitive and attract more recruits to the police department.

The community was highly engaged during Thursday’s presentation, asking thoughtful questions about what the proposal would mean for both the city and its residents. One resident specifically asked how the plan would be affected if the state moves forward with eliminating the individual income tax by expanding sales taxes to include digital goods.

McDonald said the outcome ultimately depends on voters. If approved, the city would implement the sales tax through a voter-approved levy.

"We would adjust our sales tax every year based on how it was the last 3 years. Right now, we have a stable 2% sales tax that could fluctuate up or down based off of historical sales tax," McDonald said.

Another resident asked why the city hadn’t been transparent about using money from previous years to cover current needs, a practice known as “cash above target.”

According to McDonald, the city sets this amount at 20% of its projected annual expenses, ensuring there are roughly three months’ worth of liquid cash available to cover costs.

“We're fortunate in that we have some cash above reserves as a result of previous years, but we are going through that. This year we're using a little bit of that to balance the budget. We can't keep doing that indefinitely,” Waterman said.

Thursday was only an introductory meeting, giving residents a chance to learn about the proposal and ask questions.

The Columbia City Council is expected to vote on whether to move forward with the plan in early May. If approved, the proposal would be placed on the August ballot for voters to decide.

The next “Let’s Talk Local” meeting is scheduled for April 30 and will focus on capital improvement projects.

All information presented at Thursday’s meeting will be available to the public Friday morning.