A proposed merger of St. Louis city and county would result in a $5.5 million annual budget deficit for the City of Richmond Heights, according to an analysis prepared for the Missouri State Auditor’s Office.
In addition, Richmond Heights would be left without funding for services such as trash pickup or road maintenance, the analysis emphasizes.
The analysis was prepared for use in developing the fiscal note that would accompany a merger ballot initiative, which the lobbying firm Pelopidas, LLC, (working under name “Better Together”) hopes to have on the November 2020 statewide general election ballot.
See also: Maplewood city manager hunt possibly impacted by merger talk
All St. Louis County municipalities were required to submit such budget analyses to the state auditor’s office by Feb. 22. Missouri requires all ballot measures to include a fiscal impact note, summarizing the cost of the proposed measure to taxpayers.
“The proposal seems to sweep all local sales tax revenues, use taxes, local Road & Bridge sales taxes, business and merchant license fees, and any revenues associated with municipal policing and court fines from all municipalities within St. Louis County, except perhaps the Fire & EMS quarter-cent sales tax and Parks & Storm water half-cent sales tax,” Richmond Heights City Manager Amy Hamilton states in the city’s note to the state auditor.
It would eliminate the authority of St. Louis County municipalities to provide most of the services commonly funded by those revenues, such as policing, zoning, property maintenance inspections/regulations, permitting, and courts services.
It allows for fire, EMS, parks and recreation, and solid waste removal services to be provided by the new municipal districts, “but very little funding to provide such without significant increase in property and real estate taxes,” the Richmond Heights fiscal note emphasizes.
“For the City of Richmond Heights, the net result proposed in the (Better Together) Constitutional Amendment is a deficit of over $5.5 million per year with no revenues for solid waste removal, or capital projects such as road and bridge repairs,” the city’s fiscal analysis continues.
Currently, Richmond Heights allocates over $1 million annually for road and bridge maintenance and $1 million annually for solid waste/trash removal.
While the merger proposal specifically calls for the discontinuation of some municipal services, the result in Richmond Heights would be the end of “many” services “or the need for a substantial increase to property owners in the Municipal District of Richmond Heights through real estate and personal property taxes; and significant fees for solid waste/trash removal and parks and recreation services and maintenance,” the Richmond Heights analysis notes.
Currently, Richmond Heights residents pay no fees for solid waste/trash removal service.
If the Pelopidas – Better Together merger plan implemented immediately, during Richmond Heights’ 2019 fiscal year:
- The city general fund revenues would decrease by more than half, from $13,304,627 to just $5,194,404.
- Parks and recreation funding would decrease from $4,626,140 to $3,863,520.
- Operating budget revenues would be cut roughly in half; decreasing from $17,930.767 to $9,057,924.
- The city’s capital improvement budget would drop from $2,775,139 to $0.
Expenses paid out of the city’s general and operating funds would not decrease commensurately with revenues – and expenses for parks, recreation and capital improvements would actually increase, the analysis concludes.
The result in Richmond Heights:
- A $1,774,585 negative fiscal impact on general fund services,
- A $951,652 negative impact on parks and recreation,
- A $2,726,237 negative impact, and
- A $2,789,876 reduction in local capital improvements, for
- A total negative impact of $8,242,350 for the city; after taking into account both the $5.5 million in budget account shortfalls and the elimination of more than $2 million in funding for services such as street maintenance.
Budget analyses filed by other area municipalities come the similar conclusions. According to reports in the SunCrest Call newspaper and St. Louis Business Journal:
- Crestwood would face a $3.5 million shortfall under the merger plan.
- Webster Groves would lose $21.2 million in reserve funds, prompting property tax hikes.
- Hazelwood would lose $19.2 million in revenue annually, but only eliminate $14.6 million in expenses, for a net loss of nearly $4.6 million.
- Chesterfield would experience a deficit of more than $19 million, “primarily from sales taxes no longer being remitted to the city” and is which is exploring the creation of its own county in response to the merger plan.
- Eureka would be in “unstable financial position”; potentially facing “elimination or withdraw of bond rating and higher borrowing costs” and “vulnerable to investor litigation,” according to the city’s financial director.
- Police Retirement System of St. Louis pensions could be placed in “jeopardy,” according to a spokesperson.
- Overland would be forced to increase property taxes, user fees parks and recreation facilities, or utility taxes – or face “dissolution,” according to its fiscal note to the state auditor.
The situation might actually be worse than it seems.
During the Feb. 18 meeting of the Richmond Heights City Council, City Manager Hamilton told council members that numerous ambiguities in the Pelopidas merger proposal make the true cost the merger to local taxpayers difficult to assess.
For example, in some sections, the proposed ballot initiative states that presently established municipalities in St. Louis County would continue to exist; in others, it stipulates that municipalities would be folded into new “municipal districts.”
What happened to the idea that St Louis City would simply rejoin St Louis County as a city within the county but without the duplication of County services whatever they are.
My question exactly! I like the IDEA of merging the 2 counties of STL, but leave the municipalities as they stand – or let them explore combining individually, like Clayton & RH did. I grew up in the city in Clifton Heights but moved to RH when we bought our first house as we like the amenities and being close to everything.
These numbers tell me that merger would be a bad deal for my city and any that we would move to.
So my city girl heart says “yes”, but my business analyst head say “no way!”
Hi, Miz P – from the middle child of the Bethel family that delivered your Christmas Trees!
Some county municipalities may need to ban together to secede from St. Louis County, as Chesterfield is threatening to do. For example, Kirkwood / Oakland / Webster could form its own county, and Richmond Heights / Maplewood / Clayton, and Ladue / Frontenac / Huntleigh…or something similar.
This is war. Let the municipalities that have their #@$! together get out of St. Louis County if it comes to that. Then the merger would be left with the worst municipalities of St. Louis County to have. If they want to pull a fast one and try to pass this through a statewide vote, then it’s time to pull our own dirty tactics to keep them from taking our beloved municipalities.
Barbara, that is the smartest alternative plan I’ve heard of. Hopefully enough city officials will be like minded and get out in front of this thing. This is definitely a power ploy by someone that has lots of money and nothing productive to spend it on other than the Chess Hall of Fame. Our shallow politicians jumping on the bandwagon are only looking at the immediate self gratification and not how it trickles down to you and I.
When and how did Richmond Heights and Clayton merge? Or do you mean Rock Hill? I did not know that. Are you sure and if they did what services do they share.
The biggest problem with cities merging is that even they do not want to give up some of their individuality. For years there has been talk about Maplewood and Richmond Heights merging and it has never happened. The ones I would like to see is some of the smaller “cities” that you see when you drive up 170 and see the signs along the highway and have a population of under a thousand or so. For some of these cities are already joined together somehow in that they have to hire their own police department-often the St Louis County Police, no one hardly has their own trash company anymore and most don’t produce their own electric except Kirkwood that I know of. Many are part of a larger school system so what are they actually offering a citizen other than a name that says I am from this city.
I am not so much in favor of a city county merger but more of some of these cities joining together and getting rid of the 89 cities in the county and making it maybe 40. Places like Kirkwood, Chesterfield, Maryland Heights are big enough to manage on their own. But how you make the decision on who stands alone and who joins is the question. Is it size of population, size of land they occupy, amount of business versus residents, tax base, their own police and fire staff, their own park system? All more than I am able to figure out on my own.
Richmond Heights and Clayton didn’t merge. But they “explored combining” a few years ago, as the previous poster said. In the end, they decided not to merge.
I have been a resident in the City of Richmond Heights, Missouri for forty nine years, and seen the city grow from basic services to the terrific city it is today. The City of Richmond Heights has worked extremely hard to grow and become a city of progress over the last twenty years. The results have been in my opinion very good, we have had the building of a community center, expansion of shopping mall, improvement of our school district, building of The Boulevard just to name a few. The city county merger for the City of Richmond Heights would be a major step backward and a serious deficit our city could not survive, a fate, we as residents cannot afford to happen to our city or our future. We have excellent services in our city. We as citizens should not have to suffer the financial effect of the City of St. Louis, because they do not share in the same growth. The City of St. Louis has a myriad of many financial issues and other issues. As far as I am concerned, this is the City of St. Louis issue. I am sad to know that our city would sustain such a serious deficit. Our Police Department and Fire Departments have excellent response times to our citizens for emergency services, other city offices within the city cordial as well, community services make Richmond Heights a nice place to live. I urge that our municipality not join the City-County Merger. I pay taxes for sharing of the Zoo and Art Museum, which I do not mind, but for any other connections with the City of St. Louis, Missouri, no thank you. A good example, may be the City of Memphis, Tennessee, my uncle and aunt live there and pay both city and county taxes in Memphis. City services not great, the city has its major share of wear and tear and not safe, the taxes are high about ten percent. Many Memphis residents travel to Mississippi for lower tax rate to shop. We do not want this kind of example to be our destiny. Sad to say, if the city county merger happens, I may have to consider moving to another county and fear that many other residents may consider the same, as it would not make St. Louis County a desirable place to live with the merger. I have been a St. Louis County resident all my life and I like St. Louis County. The reason why we have a municipality is to have city services for that city, protect the citizens and provide services, and the reason we pay taxes to live where we want to live and try to afford to live. Come on St. Louis County don’t let this merger happen to us. To add our County Executive does not even show up to a good number of the county council meetings.
I have been a resident in the City of Richmond Heights, Missouri for forty nine years, and seen the city grow from basic services to the terrific city it is today. The City of Richmond Heights has worked extremely hard to grow and become a city of progress over the last twenty years. The results have been in my opinion very good, we have had the building of a community center, expansion of shopping mall, improvement of our school district, building of The Boulevard just to name a few. The city county merger for the City of Richmond Heights would be a major step backward and a serious deficit our city could not survive, a fate, we as residents cannot afford to happen to our city or our future. We have excellent services in our city. We as citizens should not have to suffer the financial effect of the City of St. Louis, because they do not share in the same growth. The City of St. Louis has a myriad of many financial issues and other issues. As far as I am concerned, this is the City of St. Louis issue. I am sad to know that our city would sustain such a serious deficit. Our Police Department and Fire Departments have excellent response times to our citizens for emergency services, other city offices within the city cordial as well, community services make Richmond Heights a nice place to live. I urge that our municipality not join the City-County Merger. I pay taxes for sharing of the Zoo and Art Museum, which I do not mind, but for any other connections with the City of St. Louis, Missouri, no thank you. A good example, may be the City of Memphis, Tennessee, my uncle and aunt live there and pay both city and county taxes in Memphis. City services not great, the city has its major share of wear and tear and not safe, the taxes are high about ten percent. Many Memphis residents travel to Mississippi for lower tax rate to shop. We do not want this kind of example to be our destiny. Sad to say, if the city county merger happens, I may have to consider moving to another county and I have been a St. Louis County resident all my life and I like St. Louis County. The reason why we have a municipality is to have city services for that city, protect the citizens and provide services, and the reason we pay taxes to live where we want to live and try to afford to live. Come on St. Louis County don’t let this merger happen to us.
Exactly! I have been a resident in Maplewood for almost 40 years of my life and like the services that we get from our city. NO to the merger!
Thank you. This informs me how I should vote.
So, what is the proposed benefit? And to whom?
I left the city because of no services, little or no policing, trash and yard waste hit and miss, street, bridge and sidewalks repair. I moved to Richmond Heights where my family gets quality service, great Poilce/Fire Service, roads, sidewalks in great shape and lower taxes. The main roads (St Louis County roads) in our city are a mess. It has been that way for over 15 years with “we will fix them next year”. So much for big is better! If KING STENGER likes the city so much, he can move there. No problem finding a home. 34% of the housing is vacant or non livable. Leave us alone!! Fix your problems and STOP with the tax abatements and giveaways to developers. St Louis County, stop your BS and do your job. First, get a new County Council without KING STENGER. Our king has no clothes and no morals. He is not a leader, just a lawyer who wants power. We need to show any and ALL city and county leaders the door at election time. I know what my vote will be ‘OUT with the better together group ‘.
Harold
Harold
That’s why they want a statewide vote. Everyone in this area knows we would take it in the shorts if this nightmare passes. It’s a vast wealth transfer. Add up all the deficit figures listed above. That money and much more will go to keeping the city afloat so as to avoid bankruptcy/default. Mr. Pieper’s theory that the banks and investment houses are behind this seems really plausible to me.
Sounds like Better Together wants to bring the County down to the level of the city. This would never pass if left to the citizens in the County and City impacted by this.
This is actually another Rex Sinquefeld attempt to eliminate what he considers excess government by starving it to death. Since he is at heart a libertarian, his idea of what is “excess” government is likely to be more severe than the average person’s. He can’t come right out and say that, so he sponsors legislation to accomplish his aim by indirect methods. When he came on the Missouri political scene years ago he was an unabashed libertarian, but when he found almost no support for his policies when he was open about it, he has gone underground, so to speak.
Also, if there is only one set of government officials; it will be easier for Rex to control them. It’s all about him. (and other wealthy folks)