Historical September–October 2016 article. Dates, prices, services and contacts describe the source period; current availability has not been established.
About two years ago the Skinker DeBaliviere Community Council (SDCC) formed an ad hoc committee to explore ways to raise extra funds to support neighborhood needs. That committee identified a Special Business District as one of the strongest funding opportunities.
A short time later, SDCC recruited residents to serve on a SBD Funding Committee.
These volunteers were asked to do an independent, unbiased review of the strengths and weaknesses of a Special Business District.
From September 15 through October 7th, the committee will solicit resident input regarding the establishment of an SBD.
As part of the process, the committee will hold a public meeting to share what it has learned with neighbors, answer questions, and solicit feedback. WHAT FOLLOWS IS A BRIEF OVERVIEW OF SPECIAL BUSINESS DISTRICTS. What Is A SBD?
A special business district (SBD) provides funding for neighborhood improvement projects and services. SBD revenue comes from additional property taxes on residences within the district.
The SBD name is a little misleading because it is a tax on real estate, whether they are owned by businesses or not. SBDs are established by city ordinance and voter approval with the objective of
Town Hall Meeting: Grace United Methodist Church, Tuesday September 27, 6:30–8:00pm.
improving neighborhoods by making them safer, more attractive and thus more marketable.
There are currently nearly 200 special tax districts in St. Louis, including 6 SBDs in 28th ward alone. What Does An SBD Provide? Typical SBD projects include security services, repair or improvement of sidewalks, parks and other public places, and pedestrian lighting, but can be broad or narrow, depending on how the SBD’s charter is written.
In the case of Skinker DeBaliviere, an SBD could completely fund or provide seed money to carry out parts of the Skinker DeBaliviere Master Plan. Without this funding, the neighborhood would be completely dependent upon local government, developers and private investors to implement the neighborhood vision.
The Master Plan has improvement projects for all parts of the neighborhood.
In addition, the SBD could look at new needs as they arise, so long as they match its Charter (organizational document). Who Runs The SBD?
The SBD is managed by a seven-member board that is appointed by the mayor and approved by the Board of Aldermen.
The composition of the board is determined by the Charter (i.e., number of property owners, renters, business owners, etc.) The board is not paid by the SBD, but are volunteers who oversee how SBD funds are spent on management and the implementation of projects and services.
There are strict requirements for transparency in reporting and management of the SBD. Where Does The Money Come From? SBD improvement projects are funded by additional real estate taxes.
In its charter, the SBD must state its maximum tax rate. State law allows a rate of up to $0.85 per $100 of assessed property value.
While the SBD must be state the maximum rate in the charter, the annual rate is not fixed.
The SBD proposes a budget every calendar year which takes into account the economy, neighborhood needs, etc.
This budget must be approved by the City of St. Louis. For example, if the economy was in a slump a higher tax rate might be deemed a hardship and would be adjusted accordingly.
The SBD board could also consider the needs of fixed-income seniors or working class families in establishing the annual tax rate. How Much Will I Pay?
To calculate your increased potential taxes, you must first determine the Assessed Value of your property.
This is done by multiplying the value at which the City of St. Louis appraises your property by 19%. That value is then multiplied by the SBD tax rate. See the example below: How Much Would SBD Generate? At current assessed values, the Skinker-DeBaliviere SBD could generate the following amounts at varying tax rates: Tax Rate………. ………. ………. …. Revenue .85 (max)………. ………. ………. …… $296,600.71 .65………. ………. ………. ………. ….. $226,812.31 .50………. ………. ………. ………. ….. $174,471.01 .40………. ………. ………. ………. ….. $139,576.80 .30………. ………. ………. ………. ….. $104,682.60 .20………. ………. ………. ………. ……. $69,788.40 How Is An SBD Established? SBDs are created by a city ordinance.
First, a petition is filed by property owners within the district for the establishment of an SBD.
This would only occur if there is enough interest among property owners.
The board of alderman would adopt a resolution of the petition and a public hearing would be held with notices sent to all property owners.
The Board of Aldermen would adopt an enabling board bill creating the District and call for a popular vote to establish the maximum tax rate. Who Can Vote on Establishing An SBD? Owners of property and residents (this includes renters) within the SBD boundaries are qualified voters. Termination or renewal SBDs have a fixed term, typically 5 or 10 years, established at their inception, and is re-evaluated and renewed by voter approval at the end of the term.
Originally published in The Times of Skinker-DeBaliviere, September–October 2016.
Read this article in the original newspaper issue.
Archival transcription note: How Much Will I Pay says See the example below, but no worked property example is printed; only district revenue table follows. No missing example invented.
Original source: SD_Times2016_09.pdf, printed page(s) 1, 2; PDF page(s) 1, 2.
