How did the Blue Springs City Council approve a sales tax increase without a vote of the people? I’ve heard that question quite frequently lately, following comments made during recent council meetings.
The reality is the council does not have the authority to raise sales tax rates without a vote of the citizens; that’s the law. The City Council approved a funding mechanism commonly used to reimburse developers for extraordinary costs of development, such as improvements to city-owned roadways and stoplights.
The community improvement district that was recently approved on Adams Dairy Parkway will be used to reimburse the developer for street improvements that the city is requiring and that the developer must pay for in advance.
A CID is a taxing district established by a county or city to pay for improvements within that particular geographic district. The law states that only registered voters living in the district or property owners within the district may vote on the establishment or increase of a sales tax within that district.
Think about that. Only voters within the district may vote. This is a common principle in our tax laws. Let me give you an example. Only citizens in Blue Springs may vote on a citywide sales tax for Blue Springs. It would not make sense to ask the voters of Independence to approve a citywide sales tax in Blue Springs. In the same way, only the voters within the CID may vote. Whether we like it or not, agree or disagree, that is the law.
This type of funding mechanism has many advantages. It provides money that is used to improve the streets around a development, city owned streets, without reducing the revenue paid to the city or our schools. Once the street improvements are paid for, the tax goes away and our citizens receive the benefit of the improvements.
Councilman Ron Fowler, with all of his years of experience, would never propose an action that was contrary to the law. Was he mistaken in suggesting that all of our citizens should vote on the CID, or perhaps he didn’t fully understand how this CID would work? Either way, it’s unfortunate that his comments have added to the confusion surrounding this divisive issue.
Ultimately it is critical that our elected officials understand all of the complexities of the projects that come before them for approval. Without that understanding, mistakes are more likely to be made and taxpayer dollars may be wasted. In times of budget tightening, “fiscally conservative” must be more than a catch phrase or political slogan.