WEBSTER GROVES, Mo. (First Alert 4) – Due to an uncertain economy, city officials in Webster Groves are trying to figure out how to raise revenue and are considering bringing to voters raises in property taxes or sales taxes to put the city in a better financial position.
In the recently proposed budget, City Manager Dr. Marie Peoples outlined the city could face a budget shortfall and plans to move rainy day funds to avoid going into the red.
Peoples said in the budget summary that sales tax numbers have flattened, plus the city’s police budget has increased due to a fully staffed department.
On Tuesday, Finance Director Gregory Donovan outlined a series of options, including raises to property taxes as well as creating new sales taxes.
Those sales taxes mentioned include an economic development sales tax and a citywide transportation district, both of which would raise sales taxes by a half-cent. The current municipal rate in Webster is 1.5%.
A special election would be required for any of these. If the council elects to raise property taxes, residents would vote on three propositions, with the money going to the general fund, streets improvement fund and a first responder pension fund.
If all passed — in total it would raise property taxes 29 cents per $100. For an average home in Webster, that’s a little over than $200 more a year.
“I’m not up in arms about it,” said Phyllis Wheeler. “It would be good if they could point to exactly, we’re buying this with your money.”
Residents like Fletcher Johnson do not want to see their property taxes rise.
“I would love them to cut some money or at least fix the roads a bit, that would be nice, there are lots of potholes that are still everywhere.”
Donovan pointed out that property tax rates in Webster Groves have gone down significantly since 2004, but assessments continue to rise.
Any of these tax increases could have gone on the ballot as soon as August, but council members would have to pass the measure this month.
They made it clear Tuesday that is too soon to make a big decision and will revisit this in the summer.
They mentioned the possibility of putting a sales tax increase and property tax increase on the ballot together.
These could also be voted on in November 2025 or April 2026, whatever the council decides.
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