BETTER TOGETHER PROPOSAL IMPACT ON DES PERES

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1 BETTER TOGETHER PROPOSAL IMPACT ON DES PERES Presentation February 11, 2019 Updated February to reflect resubmittal of plan by Better Together

2 CAVEAT This presentation was prepared based upon the Better Together Report dated January 2019 issued on January 25, 2019 and Based on the ballot language submitted to the Secretary of State by Better Together on January 25, That initiative petition language was withdrawn on Friday, February 8 th by Better Together with the stated intention to submit new language the week of February 11 th to make technical corrections and clarifications This presentation has been updated to include substantive changes by Bettter Together in their resubmittal of the initiative petition to the Secretary of State on February 11, 2019 This presentation is an interpretation of the provisions of the 30 page constitutional amendment with over 1,300 lines of text

3 Better Together Proposal Better Together Proposal Issued Publicly at Press Conference on January 25, 2019 Calls for Statewide Vote on Constitutional Amendment in November 2020 Creates a new class of city - A Metropolitan City Unify St Louis City & St Louis County as a Metropolitan City Cities in St Louis County to become Municipal Divisions of the Metropolitan City Effective Date is January 1, 2021 Transition Period of Two Year to Full Implementation in January 2023 First elections in for Metropolitan City Council in November 2022, Take Office January 2023 First elections for Metro Mayor, Prosecutor and Assessor November 2024 Take Office January 2025

4 Metropolitan City of St Louis Combined St Louis City and County into Single Government, Population 1.3 million All existing cities (including St Louis City Des Peres) to become Municipal Districts Partisan Elections for all positions in Metropolitan City Metropolitan City headed by elected Mayor (4 Year Term) Metropolitan City Council Composed of 33 elected Councilmen by districts (4 Year Term) Prosecutor and Assessor Independently Elected at large During the Transition St Louis County Officials are Interim Mayor, Prosecutor & Assessor; Mayor of St Louis to be Transitional Mayor who jointly with the Interim Mayor (County Executive) shall constitute the chief executive officer of the metropolitan city.

5 Metro Mayor Is a very strong Mayor form of government Mayor appoints all department heads who serve at the pleasure of the Mayor Mayor appoints all members of boards and commissions Mayor SHALL appoint 4 deputy mayors to be called: Deputy Mayor for Public Health and Safety Deputy Mayor for Economic Development and Innovation Deputy Mayor for Community Development and Housing Deputy Mayor for Community Engagement and Equity Mayor to have line-item veto authority over budget

6 Metro Council 33 Members elected by sub-district (roughly 40,000 residents in each district) Each Council member to have at least two full time staff members. Creation of initial District Boundaries set by a committee jointly appointed by the Mayor and Transition Mayor from faculty of one or more universities in the Metro City with relevant expertise and without partisan affiliation President of Metro Council to be elected by members of Metro Council from among its members Vacancies in Metro Council to be filled by appointment by President of Metro Council

7 GOVERNANCE OF MUNICIPAL DISTRICTS Existing municipalities to become municipal districts with severely restricted service responsibilities (Fire-EMS, Parks & Recreation, Enterprise Funds- Utilities, Trash) Governing body of existing municipalities at time of adoption of plan (January 2021)to be governing body of municipal districts in office on January 2021 to remain in office until April 2023 (Municipal Elections in 2021 and 2022 cancelled) Budgets for municipal districts to be submitted annually for review and approval of Metro City. Transitional budgets for 2021 and 2022 same as 2019 budget Taxes proposed for municipal districts to be submitted for approval of Metro Council prior to submittal to voters

8 Metropolitan City General City Service shall mean ANY duty, service or function of the Metro City, a county or a city, now or in the future assigned by law, charter or ordinance of the Metropolitan City including Public Health, Safety and General Welfare; Police, law enforcement and municipal courts; Licensing, taxation and regulation of businesses, occupations, professions, activities & things Transportation, Infrastructure and Public Works; Economic Development Metro City also responsible for all traditional county functions Metro City to provide municipal district functions in areas that are not within municipal districts

9 Municipal Districts of Metro City Municipal District Service shall mean any duty, service or function of the municipality immediately prior to the effective date of this section or in the future assigned to the municipal district by law, charter or ordinance of the Metro City and which is not otherwise a general district service provided or secured by the Metro City within the territory of the municipal district, including without limitation: Fire, EMS and related services; Parks & Recreation; Proprietary and Enterprise Functions of the municipality; (Interpreted to mean Utilities and Trash/Recycling) Administration of the Municipal District Municipal Districts to remain financially responsible for all outstanding obligations which has been defined include bonds, notes, capital leases and similar obligations which also includes pension liabilities St Louis Municipal Corporation responsible only for outstanding obligations of former City of St Louis Metro City MAY assume obligations of municipal districts and STL Municipal Corporation Metro City to provide municipal district services in areas not otherwise included in a municipal district

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11 Special Districts Excluded from Metro City Special District shall mean, excluding school districts and fire protection districts, any political subdivision, municipal corporation, body corporate and politic, taxing district, taxing sub-district, public corporation or quasi-public corporation, other than a municipality (located wholly or partially within the territory of the City of St Louis or the County of St Louis immediately prior to the effective date of this section Examples Public School Districts, Special School District, Junior College District, MSD, County Library District, Zoo-Museum District, Transportation Development Districts, Community Improvement Districts

12 METRO CITY The territory of the County of St Louis is expanded to embrace the territory of the City of St Louis and the County of St Louis so expanded, and shall continue its corporate existence as a new political subdivision. with the name Metropolitan City of St Louis It s seat of Government within the heretofore City of St Louis The Metro City shall be a metropolitan form of government which is hereby created and which shall possess all of the powers and privileges of both a Constitutional Charter County, a Constitutional Charter City including a city not within a county The powers and privileges of a Metro City shall include, without limitation, all power and privileges of the County of St Louis and any municipality.

13 Metro City to be Governed by Charter The Metropolitan City shall be governed by a CHARTER. The initial charter of the Metro City shall be the Charter of St Louis County except as otherwise provided in this section. During the transition period, the mayor & transition mayor SHALL solicit public input and jointly present a plan (Charter?) for the Metropolitan City. The plan shall be submitted to the Metropolitan Council and shall be effective within 30 days unless disapproved by resolution adopted by2/3 of the metropolitan council. No voter approval involved. The plan (Metropolitan Charter?) shall take the place of and supersede all charter provisions, ordinances, rules and regulations and orders inconsistent therewith. Any subsequent amendments to the new Charter proposed by ordinance of the Metro Council will require a 2/3 vote of the electorate.

14 Municipal Districts A municipality shall continue its corporate existence as a municipal district. The boundaries of the municipal district may not be altered or changed except as provided by ordinance of the Metro City. Following the transition period, a municipal district may merge or consolidate with another municipal district or may be dissolved as authorized by ordinance of the Metro City. The governing body of the municipal district shall be the governing body of the existing municipality Those in office in November 2020 shall continue to serve until Municipal Elections in April 2023 The governing body shall serving as the Plan Commission (Zoning Authority Assigned to Metro City) and Board of Adjustment for Metro City (for their district?) The governing body of a municipal district may adopt ordinances not inconsistent with the ordinances of Metro City

15 Existing City of St Louis Effective January 1, 2023, the area of the existing City of St Louis shall become the St Louis Municipal Corporation for the purposes of Satisfaction of outstanding obligations of any kind of the municipal district "except the metropolitan city MAY assume obligations of the St Louis Municipal District. Provide for the provision of municipal district services (except Fire Protection). Effective January 1, 2023, the St Louis Fire Protection District is created to provide fire and ems services within the area now known as the City of St Louis. Fire District is authorized to levy whatever Real Estate Tax is sufficient to produce substantially the same amount of revenue certified by the board as necessary. After January 1, 2025, the general state regulations on fire district taxation shall apply. Governing body of St Louis Municipal Corporation to be composed of 5 members appointed by the transition mayor

16 FINANCING OF SERVICES General District Services of the Metropolitan City to funded primarily from sales taxes Municipal District Services to be funded primarily from property taxes Earnings Tax in City of St Louis to be phased out over 10 year period Each municipal district is a sub-district of the Metro City and the Metro City can, with voter approval in the municipal district, levy different taxes within the municipal district to increase the level of any services in the municipal district.

17 FINANCES - GENERALLY The METRO CITY shall be entitled to all funds from the state or federal government to the extent and same manner in which any county or city may be entitled to receive such funds (Under this amendment, existing municipalities will no longer be cities ) The Municipal District shall be entitled to all funds from the state or federal government that are in furtherance of any power granted to the Municipal District. All taxes, including sales taxes, levied by the municipalities to remain in place during the transition and become taxes of the Metropolitan City Property Tax levied by St Louis County for general county government purposes to be reduced by 50.0% Property tax levied by the City of St Louis for general purposes to be eliminated.

18 Property to be Transferred to Metro City Property, contracts, records and personnel of a municipal district relating to provision of a general district service shall be transferred to the Metro City Property encumbered by debt is not transferred until the debt is retired Municipal reserves specifically excluded from term property What is included in the term property? Land & Buildings? Equipment? Is transfer of property with or without compensation to the municipality?

19 TAXES - GENERALLY The tax structures, tax rates and level of services in effect prior to the effective date of this section shall remain in effect until modified by the Metro City. Except the Real & PP Tax levied by the City of St Louis shall be replaced by the current rate of tax in the County Government. The RE & PP Tax levy for general county purposes shall be reduced by 50.0% General District Services and the satisfaction of outstanding obligations of any kind of the Metro City shall be financed with funds generated within the territory of the Metro City including all municipal divisions Municipal District Services and the satisfaction of outstanding obligations of any kind of the Municipal District shall be financed with funds generated within the territory of the municipal district.

20 TAXES DURING TRANSITION PERIOD During the transition period, ( ), the Metro City SHALL distribute to the municipal districts funds generated from any tax, fee or special assessment initially levied by the municipality and collected within the municipal district for: the satisfaction of any outstanding obligations of the district necessary for the provision of municipal district services in the district necessary for the provision of general district services in the district until such service is provided by the Metro City.

21 TAX DISTRIBUTION AFTER TRANSITION The Metro City SHALL distribute any tax, fee or special assessment of the Metro City initially levied by a municipality to the municipal district for satisfaction of any outstanding obligation. The Metro City SHALL distribute any remaining funds generated by a property tax or special assessment of the Metro City initially levied by the municipality to the municipal district as municipal district services with its territory or for provision of general district services until such service is provided by Metro City in the territory of the municipal district. The Metro City SHALL distribute any remaining fund generated by any sales or use tax of the Metro City initially levied by the municipality to the municipal district as necessary for provision of municipal district services or general district services until such service is provided by Metro City. Any remaining sales taxes levied witin the territory of a municipal district and not distributed to municipal districts MAY be used by Metro City to provide general district services

22 Shall distribute sales taxes as necessary While the language relating to distribution of sales and use taxes to municipal districts has been changed from MAY to SHALL the language still includes the modifier.. AS NECESSARY As necessary is a subjective judgement. Who will determined what amount is necessary? The Metro Mayor? The 33 member Metro Council?

23 REVENUES LOST BY THE MUNICIPAL DISTRICTS TO THE METRO CITY Earnings Taxes in the City of St Louis to Metro City but to be fazed out over 10 years. Sales & Use Taxes imposed by the Municipality to remain in effect BUT REDIRECTED to Metro City Taxes shared with Cities ; County Road & Bridge Refund & Cigarette Tax; State Gasoline, Motor Vehicle and Motor Vehicle Fees Municipal Court Revenues Revenues from Business Licenses Revenues from Land Use Regulations Building Permit & Inspection Fees

24 SALES TAX DISTRIBUTION All sales taxes levied by municipalities will continue as levied but shall be taxes paid to the METRO CITY not to the municipal districts The Metro City SHALL pass thru to the municipal district those sales taxes necessary to meet outstanding obligations of the municipal district The Metro City MAY pass thru to the municipal district remaining sales tax revenues necessary for the provision of municipal district services. Any remaining sales tax revenues MAY be used by the Metro City to finance general district services in the Metro City.

25 REVENUES LOST BY DES PERES TO THE METRO CITY Sales & Use Taxes imposed by the Municipality Taxes for Cities ; County Road & Bridge Refund & Cigarette Tax; State Gasoline, Motor Vehicle and Motor Vehicle Fees Shared by the State Municipal Court Revenues Revenues from Business Licenses Revenues from Land Use Regulations Building Permit & Inspection Fees

26 SALES TAXES Sales Tax (In Des Peres) 2019 Des Peres Budget RETAINED BY METRO CITY PASSED THRU TO MUNICIPAL DIVISION 1.25% General Sales & Use Tax $ 5,920,000 Metro City None 0.50% Park Sales $ 3,037,000 Metro City (i) Debt Service ($0) (ii) Cost of P&R? 0.25% Fire Sales Tax $ 1,547,000 Metro City Assume 100% Passed Thru for Fire Service 0.25% Prop P Sales Tax $ 460,000 Metro City None 0.50% Capital Sales Tax $ 2,600,000 Metro City (i) Debt Service ($0) (ii) Other??? 0.50% Economic Development $ 000 Metro City None $13,584,000 $ 12,037,000 $1,547,000

27 OTHER TAXES LOST BY DES PERES REVENUE SOURCE AMOUNT IN 2019 BUDGET Intergovernmental Revenues $ 783,500 Business License Fees $ 1,140,000 Fees for Building & Other Permits $ 168,000 Municipal Court $ 103,000 Contract for Police Protection WCC-CID $ 135,000 TOTAL $ 2,329,500

28 DUTIES ASSUMED BY METRO CITY OPERATING BUDGETS 2019 BUDGET COSTS POLICE $ 3,730,483 TRANSPORATION (STREETS) $ 1,161,850 PUBLIC WORKS (Zoning & Land Use, Building Permits, Nuisance Codes, Sewer Lateral Program $ 516,325 MUNICIPAL COURT $ 257,480 TOTAL $ 5,666,138

29 NET FISCAL IMPACT ON DES PERES 2019 Budget General, Fire, PS Funds Parks & Rec Funds Total Operations CAPITAL FUND Revenues 11,833,947 6,269,400 18,103,347 3,227,055 Expenses (11,680,480) (5,133,575) (16,814,096) (4,448,055) Surplus(Deficit 153,465 1,135,825 1,289,251 (1,221,000) Transfers In(Out) 29,000 (1,214,500) (1,185,000) 1,213,000 Change in FB 182,467 (78,716) 103,751 (8,000) POST BT Revenues 3,160,447 3,232,400 6,392, ,305 Expenses (6,014,343) (5,133,575) (11,147,918) (2,400,900) Surplus(Deficit (2,853,896) (1,901,175) (4,755,071) (1,963,595) Transfers In(Out) -0- (1,207,175) (1,207,000) 1,234,500 Change in FB (2,853,896) (3,108,175) (5,962,071) (729,095)

30 HOW DO YOU MAKE UP THE DIFFERENCE? CUTS in GENERAL ADMINISTRATION COSTS CUTS IN FIRE-EMS OR Shift Service to a Fire Protection District (WITH VOTER APPROVAL) CUTS IN PARKS & RECREATION SERVICES ELIMINATE CITY PAYMENT FOR SOLID WASTE COLLECTION ($284 per home) INCREASES IN TAXES, LICENSES AND FEES (WITH VOTER APPROVAL) within Des Peres

31 REVENUE OPTIONS - MUNICIPAL DISTRICT Potential Revenue Sources Under Better Together for Des Peres Current Rates Levied by Des Peres 2019 Statutory Maximum Tax Rate Allowed by Law Additional Revenue Available to Des Peres Real Estate Tax $ 0.00 $ ,148,734 Personal Property Tax $ 0.00 $ ,157 Utility Taxes 3.6% to 5.0% 10.0% 1,563,488 Trash Fee $ 0.00 Actual Cost 887,625 When can tax increases be submitted to voters in the municipal districts to offset lost revenues in anticipation of Metro City?