Joplin council approves tax levy

Aug. 23—Joplin's annual tax levy will remain almost the same as last year after City Council action Monday night.

The council authorized a property tax of 42.05 cents for every $100 of assessed valuation. The tax goes partly to the city for specified uses and partly to the Joplin Public Library for its operations.

The city portion of the levy is 17.46 cents. "This rate represents no change for the city," finance director Leslie Haase said. The library's part will involve a slight increase from 24.53 cents to 24.59 cents, she said.

The city's portion is actually three separate property tax levies designated years ago by voters to go to three purposes: the health department, the parks department and to fund solid waste, which is now the Joplin Recycling Center. Each of the three levies originally were set at 8 cents, but they have to be rolled back each year as the result of the Hancock Amendment, which regulates property tax levies.

"This is not requesting any new property tax," Haase said. Any new tax would have to be approved by the voters, she said.

"This is simply setting the property tax levy for the three levies that we currently have been authorized for," she said.

The calculation also includes the value of new construction in the city as determined by the county, as well as the city's prior tax rate ceiling and the prior year's authorized levy.

While the city is authorized to set the levy at up to 54 cents, a rollback occurs under the Hancock Amendment of the Missouri Constitution, which limits tax levy increases without voter approval. However, a state law allows cities and other government entities to adjust existing property tax rates by using a state-approved calculation that incorporates the consumer price index to account for inflation.

Under the state law, property tax revenue can increase only because of an increase in the CPI, or an increase created by new construction or annexed or added property.

For a house with a $100,000 market value, the total annual property tax would be $79.90, which includes the increase of 11 cents that goes to the library. The $79.90 will be divided with $33.17 going to the city and $46.73 to the library.

The tax is projected to generate nearly $1.3 million for the city and $1.6 million for the library.

During a public hearing on the proposed tax levy, one resident, Deborah Ferguson, said if the council voted to approve the levy, she is "pretty sure" the resulting tax increase would "disgust" those who turned down an Aug. 2 property tax increase for public safety. She said that vote barred the city from assessing any rise in property tax.

"This actually is an increase, and I haven't heard how many millions of dollars it's going to result in," she said. "I also never heard why the library needs more money."

She said that approval would show her that the council was not willing to do its job and stop tax increases. She also said the city and council do not operate with a balanced budget.

Councilman Phil Stinnett asked the finance director if the levy being discussed had previously been authorized by voters. He also asked if the money for the library goes directly to the library and not to the city. He also inquired if it is correct that the only reason that revenue is increasing is because of the CPI and new construction. Haase answered in the affirmative.

"I guess if we didn't pass it we could just shut the library down because they wouldn't have any funds," Stinnett said. "That extra money is strictly by calculation that's done based on what the state's formula is. Is that correct?" Haase confirmed those statements.

"We are basically renewing something we've done for umpteen years. It's being renewed by the state calculation, the Hancock Amendment and all legalities. And, as a matter of fact, one other thing that I heard is based under our charter, aren't we to operate under a balanced budget?" Stinnett asked. Haase said those statements also are correct.

"So we do balance the budget," he said. "We are not irresponsible officeholders with regards to a balanced budget?"

"That is correct, sir," Haase replied.

Stinnett made a motion to approve the levy, and it was seconded by Josh DeTar. The council approved the motion by a vote of seven members in favor and one member, Mark Farnham, against it. Mayor Doug Lawson was absent.