The Union Personnel, Finance and Public Works Committee began the discussion to outsource tax collection services to the county in the spring when City Collector Ruth Dowil requested a salary increase for the position for 2010.

Information presented to the committee by City Administrator Russell Rost indicated that the county would charge about $18,000, plus some additional charges, to collect city taxes. He said the current collector's salary, benefits and payments to the city's insurance provider total over $60,000.

"Basically I believe, in round terms, that the city spends $60,000 plus and the county collection is around $20,000," said Committee Chairman Dale Schmuke.

The city must decide whether or not to contract the services with the county by mid-August in order for the county to perform the 2010 collection. The city must seek voter approval to eliminate the collector as an elected city position.

The collector was given a pay increase each year from 2006-2010. Dowil's four-year term expires in April 2010 and she is seeking a raise for the position during the next term.

Officials are considering contracting the county to collect city taxes and lowering the clerk's salary next year to cut costs.

Rost told the committee that, according to Dowil, the cities of Pacific and St. Clair did not cut their collector's salary when they contracted with the city. Rost noted that the city of St. Clair laid off a clerk when the county began to collect city taxes because the amount of collection work was reduced.

"We have to cut back and this is a start," said Alderman Paul Arand. "We are eliminating the majority of the work she is doing."

Rost said that Dowil also pointed out that the city will save $4,000 in postage and city stickers by using county tax collection, which is not related to her salary.

The county collector's office began collecting for municipalities in 1998 when it started collecting for Washington. Other cities began soliciting the service. In 2006, Pacific was the latest to have the county collect its taxes.

Rost added that in communities that still have an elected collector, the collector's duties include utility billing. The city already has a clerk who performs that duty.

City Administrator Russell Rost suggested aldermen discuss a pay increase for all elected officials in October, prior to filing for office, to determine the salary of each elected official.

County Collection

Each of the cities the county collects for is assessed a charge for the service. One and one-half percent of the total charge goes to the collector's fund and one-half percent goes to the assessor's fund.

That money goes to the general revenue fund and offsets the extra costs in each office.

In addition to the collector and assessor charges, the county collector and clerk each get a $2,000 commission for their services. This is because both are held personally accountable for the accuracy of their offices.

Berger, Gerald, Leslie, Oak Grove Village and Parkway Village do not have to pay to have the county collect their taxes for them because so little tax is collected.

Another benefit to cities is that the county is better able to collect on delinquent bills. As long as the individual lives within the county, he or she will have to pay the collector's office personal property tax to renew license plates and tags at the Missouri Department of Revenue.