The county commissioners' speaking tour continued Monday, as county board Chairman Ronnie White talked to the Chester City Council about the proposed Public Safety Tax referendum on the April 4 ballot.
"We just haven't been able to keep up with the coal tax revenue being lost," he said, noting that the county's highway department is currently operating with 49.5 percent of its normal appropriations.
For the first $2 million in sales tax revenue generated, the county would receive 75 percent of it and the municipalities get 25 percent. Once the $2 million threshold has been met, the percentages would flip, resulting in a greater distribution to the local agencies for any additional funds.
Chester, Sparta and Red Bud would theoretically benefit the most under the proposal, which is currently basing distribution of the roughly $1.1 million in annual sales tax revenue on the 2010 population census. Chester could bring in $119,150 during the first 25 percent of distribution, a number that increases to $276,389.91 once the percentages flip.
White noted that the county treasurer's office is estimating the lowest sales tax receipts in the past 15 years and expressed concern regarding the county's ability to pay for ambulance service with the 10-year contract with MedStar Ambulance set to expire on Nov. 30.
"These numbers are real and a big concern," he said.
Alderwoman Nancy Crossland stated she had read in the newspaper how the safety tax could affect Sparta and expressed concerns on how the higher sales tax rate could affect other communities.
During an outreach meeting between the commissioners and representatives of the county's police, fire and municipal government agencies in February, Sparta Mayor Jason Schlimme stated his city's sales tax rate is already tied for fourth highest in the state and by adding the additional 1 percent, it would bring it to 9.25 percent.
"That would make it the highest in Southern Illinois south of Springfield," he said at the time.
"I understand they would be very high now, but we have the whole county to think about, not just Sparta," White said in his response to Crossland's concerns.
Alderman Robert Platt said he had received some questions about whether the funds would be used in the county's general fund at the board's discretion.
White said all of the funds would go specifically toward public safety, but he was not 100 percent sure the ordinance would be ready to pass before the election.
The commissioners are weighing the concerns of the individual municipalities - including some that have their own police, but not fire, coverage. The board announced during its March 10 meeting that the ordinance would be signed at Friday's meeting.
"It's not as simple as we initially thought," White said, later noting that some fire districts overlap, further complicating matters.
Platt asked White if research had been done on the impact to the county if people started shopping outside the county in order to avoid the tax. He noted the relative proximity of Perryville to Chester.
White said he had not personally researched the issue. City Treasurer Donna Clendenin stated she believed Perryville's sales tax to be 1 to 1 ½ percent higher than Chester's rate of 7.25 percent.
According to the Perry County (Mo.) website, Perryville has a sales tax rate of 7.975 percent.
Lastly, White noted that money from the public safety tax could also be put away for bigger projects.
In other news, the council approved an ordinance changing the number of liquor licenses to be issued within the city. The ordinance trades one Class "B" license (establishments that sell packaged liquor) for an additional Class "A" license (alcohol that is consumed on-premises).
The number of total licenses, 21, remains the same. Chester Mayor Tom Page, as the city's liquor commissioner, stated that Mr. Kenny's BBQ is planning an eventual expansion and was interested in a Class "A" license.
ROUNDUP
The council approved the following items:
- The payment of bills in the amount of $659,443.31 and an invoice - in the amount of $82,250.88 - from Red Dot Construction for water line replacement for Kaskaskia and Wall Street.
- Raffle licenses for Alva Courier American Legion Post 487 and Breezy Hill Flyers Club.
- A transfer of $150,000 of residual equity from the Natural Gas Fund to the General Fund, an item that was previously budgeted.
- A transfer of $50,000 of residual equity from the Natural Gas Fund to the Fire Protection Fund, another item that was previously budgeted.
- A transfer of $70,000 of residual equity from the Natural Gas Fund to the Water/Sewer Fund. City Clerk Bethany Berner noted that the money was originally budgeted for the Capital Improvement Fund, but after speaking to the city's auditor, it was recommended to change funds due to "the state budget crisis." Alderman Dan Ohlau was the lone no vote on this item.
