Shrewsbury May Put Tax Increase on November Ballot

The Board of Aldermen is considering putting a temporary property tax increase on the November election ballot. However, board members opted to delay their decision after talks concerning the uncertainty surrounding the Kenrick Plaza redevelopment and a less-than-projected deficit from 2011.  

In a work session that drew little public attendance, the board discussed a potential property tax increase that would most likely include a sunset provision of six years. The measure could potentially raise anywhere from $250,000 to $400,000, depending on the size of the hike. The board had favored upping utility taxes from 7.25 percent to 8 percent at its previous meeting, but that would bring in even less money—only about $100,000.

At the heart of the city’s discussion are the with developer GJ Grewe to renovate the increasingly barren Kenrick Plaza shopping center by building a Walmart Supercenter and other retail. The issue has been contentious among Shrewsbury residents, but Shrewsbury Mayor Felicity Buckley has repeatedly argued that it would lift the sagging sales tax revenue the city is dependent on.

Alderman Mike Travaglini suggested putting off a decision on any ballot initiatives until the city can offer citizens more certainty about the project. If necessary, the board could wait several more months and still be able to place any tax increase on a November ballot.  

Another factor in the budget discussions was a one-time financial windfall received late last year that sliced Shrewsbury’s 2011 deficit from about $181,000 to about $35,000.

Shrewsbury Finance Director Danielle Oettle said the reduction came from the cost of a construction permit paid by the Archdiocese of St. Louis for its . According to Oettle, the final numbers from 2011 leave the city with a reserve fund of about $2 million to cover future deficits.

The board also decided to put off setting a date for a planned town hall meeting to allow citizens to address Shrewsbury’s elected officials about what they would like to see done about the city's struggling budget situation. The town hall will be scheduled when the city could present a more precise proposal.

Mayor maintains need for revenue increases

Shrewsbury Mayor Felicity Buckley continued to stress the need for more revenue if the city hopes to keep on providing the same level of service to residents, but noted the proposals were far from ideal.

“Neither one is a very good option,” Buckley said, in particular citing the negative impact a property tax increase could have an real estate values.

“We are at a crossroads in our community,” she continued. “We don’t have the revenue. It’s appropriate to take it to the residents and say it’s your turn to speak. Are you willing to increase your taxes or not?”

The board mostly voiced agreement with Buckley’s assessment that any further cuts to the budget would need to be “service cuts.” This could include moves such as selling the Shrewsbury pool, turning off streetlights or merging the fire and police departments.  

“We can cut a dollar here and a dollar there, but major cuts? No,” Aldermen Mike Travaglini said.

Board member Dee Wiecher formed the sole voice of opposition. When asked by Buckley if she agreed with the view that no further cuts could be made without impacting city’s services and programs, Wiecher said “I’m not positive yet.”

Wiecher asked for more time to investigate the option of merging the Shrewsbury’s police and fire departments into a unified public safety division. However Fire Chief Bill Fox said the costs of cross-training existing employees alone could prove prohibitive.

Ordinance raises opposition

The meeting also included the passage of an ordinance that drew heated disapproval from Wiecher. Specifically, the ordinance called for an amendment to a contract with a financial consultant the city has been using in its ongoing negotiations on the Kenrick Plaza redevelopment.

The first reading, second reading and vote on the ordinance were all done in succession, a practice Wiecher has consistently opposed during her time on the board.

“I think it’s unfortunate that there are no members of the community in the room at this time to hear this bill come before the board,” Wiecher said. She added that it was “an indication of something happening” that the community should be aware of in more than just one meeting.

In response, Buckley said that the community had been made aware of it through the emails and notices sent out to post the meeting’s agenda. She added that residents are aware of the city’s ongoing talks with Grewe and that those negotiations cannot continue without this contract being signed.

Wiecher maintained her opposition, but the motion to approve the ordinance passed 4-1. Alderwoman Chris Gorman was absent.

Chickens!

On a more unified note, the board unanimously passed an ordinance allowing for the raising of domestic chickens in Shrewsbury. For more details on the specifics of the ordinance, check out .