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City May Seek Sales Tax to Fund Sports Complex
By: Gregg Jones, Union Missourian Editor
10/31/2009
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The city may ask voters to approve a new capital improvement sales tax next to help fund a sports complex in east Union.



City Administrator Russell Rost said there are limited options to fund a proposed sports complex on 44 acres recently purchased by the city.

He said the city could ask residents if they would consider a tax to fund the project.

"We would have to decide on a design, look at the funding mechanism and based on the numbers do research and go to the public to see if a capital improvement sales tax is something voters would support," he said.

He added that a quarter-cent sales tax would not provide enough to pay the $98,000 bank note on the property, but a half cent sales tax would "guarantee" the complex would be built.

Rost explained that other options would not provide the funding needed for the project.

He said the city could use $100,000 each year from the general fund already slated for park projects, but that too would only pay what is owed annually on the property.

"All that would accomplish would be to pay the note and we still have other things to do," said Rost, including install new roofing on some park buildings. Another option, Rost said, is to "piecemeal" the complex with funds when they become available, but that would prolong the project indefinitely.

The city still has to determine if it will hire a firm with expertise in park designs, SWT, or use a basic drawing of the park provided by local engineering firm Cochran.

City Engineer Jonathan Zimmermann suggested the city decide how to fund the project before deciding what design route to take. City officials have been at odds in deciding if they should hire SWT.

"I look at it differently - we should know how to pay for it first and then figure out what we are going to do," said Zimmermann. "I may be speaking out of turn, but we are probably going to go for a sales tax."

He added that if the city seeks a new tax, all sports organizations that have an interest in the complex should support the tax to help promote the initiative to voters.

"This is a public project," added Rost. "I think the public has to be assessed." Community Development Director Joseph Graves noted that public input is important because he has heard that some would like the property to include green space along with the sports complex.

If the city seeks a quarter-cent sales tax, it would put the citywide sales tax at 8.225 cents. There would be five citywide (or village) sales taxes higher than Union in the county. Those are: Washington - 8.35 cents; St. Clair - 8.975; Sullivan - 8.475; New Haven - 8.475; and Parkway Village - 8.975.

The current Union sales tax, including Community Improvement Districts (CIDs) are as follows:

Citywide - 7.975, includes state, county and city levies; citywide with East Main and Highway 47 CID - 8.975; and citywide with Highway 50 and Highway 47 CID - 8.975;

CID sales taxes are only charged on sales at businesses within the district.


©Washington Missouri 2009

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