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Neosho residents turned down a city property tax proposal Tuesday by 591 votes out of 2,669 cast.
The final ballot tally on whether or not to levy a $1 per $100 of assessed valuation tax on real and personal property within the city limits was 1,039 yeas to 1,630 nays, a percentage difference of 22 points.
Neosho Mayor Richard Davidson admitted he thought the final numbers would be closer, but said he took it as a message from the citizens to “make do with what you have.”
“We’ve said all along that we have two options — increase revenues or cut expenses,” Davidson said minutes after the final results were in. “We didn’t get the option to raise revenue so we’ll go cut expenses. I think the cuts that will be coming will be quick. I think the cuts will be focused on very specific areas. We’ll do everything we can to make payroll and jobs the last thing that is cut. And we’ll see how the city manager and city finance director work with the numbers and see what they come up with.”
The city will face a financial shortfall next fiscal year of at least $1.2 million. Neosho officials have committed to coming up with a balanced budget by Oct. 1, as per state law, and the deficit must be paid off out of the general revenue fund, which pays for police and fire.
Davidson said he expects to see personnel cuts within five to 10 days. He said the city would do everything it could to minimize the negative impact on police and fire service. Asked specifically if any firemen or police officers would be laid off this week, Davidson said that would be up to interim city manager Harlan Moore and finance director Martha Mundt, but that the city would do “everything we can to avoid it.”
“Neosho is going to see some drastic changes,” Davidson said.
“The last thing we want to see is a reduction in (police and fire) service, we’ve said that all along, but I’m confident the citizens are going to see some significant changes based on the lack of finances. We will proceed based on what the voters’ desire is.”
The city council may now choose to use its state-delegated authority to levy a 42-cent tax on real property only, provided the levy gets certified by the state auditor’s office. At last report, however, the Missouri Attorney General’s office wanted to look into the legalities of the issue first. Those hoops have to be jumped through by Sept. 1, which is the deadline the council has to set a tax levy. Even should the 42-cent levy go through, the city would still be short at least $825,000 next fiscal year, which would have to be made up out of the general revenue fund.
Neosho residents turned down a city property tax proposal Tuesday by 591 votes out of 2,669 cast.
The final ballot tally on whether or not to levy a $1 per $100 of assessed valuation tax on real and personal property within the city limits was 1,039 yeas to 1,630 nays, a percentage difference of 22 points.
Neosho Mayor Richard Davidson admitted he thought the final numbers would be closer, but said he took it as a message from the citizens to “make do with what you have.”
“We’ve said all along that we have two options — increase revenues or cut expenses,” Davidson said minutes after the final results were in. “We didn’t get the option to raise revenue so we’ll go cut expenses. I think the cuts that will be coming will be quick. I think the cuts will be focused on very specific areas. We’ll do everything we can to make payroll and jobs the last thing that is cut. And we’ll see how the city manager and city finance director work with the numbers and see what they come up with.”
The city will face a financial shortfall next fiscal year of at least $1.2 million. Neosho officials have committed to coming up with a balanced budget by Oct. 1, as per state law, and the deficit must be paid off out of the general revenue fund, which pays for police and fire.
Davidson said he expects to see personnel cuts within five to 10 days. He said the city would do everything it could to minimize the negative impact on police and fire service. Asked specifically if any firemen or police officers would be laid off this week, Davidson said that would be up to interim city manager Harlan Moore and finance director Martha Mundt, but that the city would do “everything we can to avoid it.”
“Neosho is going to see some drastic changes,” Davidson said.
“The last thing we want to see is a reduction in (police and fire) service, we’ve said that all along, but I’m confident the citizens are going to see some significant changes based on the lack of finances. We will proceed based on what the voters’ desire is.”
The city council may now choose to use its state-delegated authority to levy a 42-cent tax on real property only, provided the levy gets certified by the state auditor’s office. At last report, however, the Missouri Attorney General’s office wanted to look into the legalities of the issue first. Those hoops have to be jumped through by Sept. 1, which is the deadline the council has to set a tax levy. Even should the 42-cent levy go through, the city would still be short at least $825,000 next fiscal year, which would have to be made up out of the general revenue fund.
Neosho resident J.C. Herrell has been a vocal opponent of the $1 property tax. Shortly after all the votes were counted Tuesday, Herrell said he felt like the citizens were telling city management “we’ve had enough.”
He did note, however, that he wasn’t against the 42-cent property tax levy, should the council be able to impose it.
“I’m not against the city,” Herrell said. “I’m against the way this all came down in such a hurry and was forced on people. The people of Neosho want to slow down. We need to stop what we’re doing for a minute and regroup. Nobody regrouped. Everybody just went out and said ‘this is the way it’s supposed to be.’”
