Crystal Thomas
The State Journal-Register
If the Springfield City Council takes a vote Tuesday on whether to increase the city sales tax, at least five aldermen say they would vote “no,” while two others were undecided, according to a poll taken late last week by The State Journal-Register.
The 0.25-percentage-point increase, which would bring the city’s total sales tax to 8.75 percent, and a telecommunications tax hike from 4 percent to 6 percent — both proposed by Mayor Jim Langfelder — are on the agenda for Tuesday’s city council meeting as aldermen continue to work on finalizing a budget before the March 1 start of the next fiscal year.
Revenue from the sales tax would go to the city’s general fund, while the telecommunications tax increase would be dedicated to the public library.
Ward 1 Ald. Chuck Redpath, Ward 6 Ald. Kristin Dicenso, Ward 7 Ald. Joe McMenamin, Ward 9 Ald. Jim Donelan and Ward 10 Ald. Ralph Hanauer said they would vote against the city sales tax increase. All of the aldermen urged more outreach from Langfelder.
The taxes would need six “yes” votes in order to pass. Langfelder could jump in to cast the deciding sixth vote.
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DiCenso said the city needed to turn to “creative” ways to raise revenue, instead of relying on two income streams that are declining. She pointed to a recent ordinance in which the city could start taxing online rental companies like Airbnb as an example, though she said the revenue generated by that would be “a drop in the bucket.”
McMenamin echoed DiCenso, saying he has urged Langfelder in public and private to diversify the city’s tax base. He pointed out other cities have a dine-in tax, a motor fuel tax and natural gas tax, unlike Springfield. He added he would propose cuts to personnel in the fire department and to departments that have budgeted for vacancies.
“I think the council needs to send a message to the mayor (Tuesday), and I hope there’s a vote on sales tax in particular, and I hope it’s a “no” vote,” McMenamin said.
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Even before the tax increases get a vote, Langfelder’s projections are in question. The mayor’s budget relies on $5.5 million in revenue from the two tax increases. But to get that much money, the taxes would need to be collected for a full 12 months. Under current law, Springfield can’t begin to collect increased taxes this year until July 1, after one-third of the year has passed. Langfelder has said he is lobbying the state legislature to approve a bill that would allow the collection date to be moved up to March 1.
Joe McMenamin for Ward 7 