Historical May 1984 report or notice. Original dates, prices and contacts describe the source period; current availability has not been established.
On June 5, St. Louis voters will be asked to approve a tax increase to maintain city services at the present level.
The tax proposal consists of two parts: a 3/8-cent increase in the sales tax, and a “head tax” on businesses of $5 per month per employee.
Although for the first time in a number of years the City of St. Louis will end the current fiscal year without a deficit, projections are that we will face a deficit of almost $20 million in the coming year.
The deficit is caused by a drop of $6.7 million in revenues and an increase in expenses of $13.2 million.
The increased expenses are a result of higher utility costs, higher pension contributions, raises for police and firemen, and a 11/2 percent raise for other city workers.
This budget for the next fiscal year contains no new or expanded programs.
Since taking office in 1981, I have worked hard to increase the efficiency of city government.
For example, I have consolidated nursing facilities, resulting in an annual savings of over $5 million.
The oneman trash dumpster system has been expanded to most city neighborhoods, thereby reducing manpower needs by twothirds. Seasonal employees have been hired to replace full-time park employees.
In all, the city workforce has been reduced by 38.5 percent in the last five years without a noticeable decrease in city services.
My own staff has been reduced 28 percent in the past three years.
But we have not reached the point where any additional budget cuts will adversely affect neighborhood and emergency services.
Without the tax increase, another 500 jobs will have to be eliminated.
Some services, such as street cleaning and bulk trash pickup, would have to be stopped entirely.
Others, like ambulance and clinic services, would be severely cut back. Faced with these dire consequences, the Board of Aldermen and the Board of Estimate and Apportionment decided to submit a tax increase proposal to the voters.
Thus, city voters will be able to decide the ultimate fate of those services which are currently in jeopardy.
The proposed tax is a fair one.
It taxes both businesses and consumers.
While few would disagree that there is a need for a tax increase, some have questioned whether the business tax would drive business away from St. Louis.
An analysis of tax rates in surrounding counties indicates that even with the new head tax, the tax load on businesses in the City of St. Louis would still be substantially less than in surrounding counties.
For example, a business in St. Louis County would pay 22 percent more in taxes than that same business would pay in the City of St. Louis.
For a city business with tax abatement, the savings are even greater.
While no one likes to pay more taxes, many residents and businesses see the loss of neighborhood and emergency services as a greater problem.
For a family which spends $8,000 a year on sales-taxed items (sales tax is not paid on items such as rent, mortgage payments, and medical bills), the tax would cost an extra $30 a year.
For that $30 you would continue to receive twice-a-week trash pickup, street cleaning, summer recreation programs, and a host of other city services.
The choice is up to you.
On June 5 you can decide whether St. Louis should continue to provide these services to your neighborhood.
Originally published in The Paper, May 1984.
Read this article in the original newspaper issue.
Archival transcription note: Printed But we have not reached the point conflicts with the following warning of service cuts; not silently changed to now. Financial projections and workforce claims attributed to the mayor.
Original source: SD_Times1984_05.pdf, printed page(s) 7; PDF page(s) 7.
