Cameron Montemayor
ST. JOSEPH, Mo. (News-Press NOW) — A 10-year tax approved by voters to restore and improve St. Joseph’s parks system is performing so well it could hit its original revenue target years before its planned sunset in 2031, opening the door for a sizable increase in available funds despite soaring project costs.
Since the approval of St. Joseph’s Parks Sales Tax by more than 70% of voters in the Aug. 3, 2021 election, the half-cent tax has generated more than $30 million for numerous upgrades from new park restrooms to high-profile upgrades at Krug Park, Phil Welch Stadium, Corby Pond and Civic Arena, including construction of new facilities like Maple Leaf Skatepark and biking courses at River Bluff Trails Park.
The tax, which was expected to generate $60 million over its duration, or roughly $6 million each year, has been generating around $8.8 million on average according to city budget and annual comprehensive financial reports, putting it on pace to hit its goal by year seven or eight and possibly exceed it by tens of millions of dollars.
“We thought somewhere moving into the eighth year, we might raise the money that we had hoped, and that should still be kind of on track,” St. Joseph Parks and Recreation Director Jeff Atkins said. “The money was coming in in bigger amounts than they anticipated for each year.”
Annual revenue from the tax has ranged from $8.3 million in 2022-23 — the first full year park taxes were collected — to as high as $10.1 million in fiscal year 2023-24. The tax functions by taking one-half cent on every $1 spent.
The extensive projects list funded by the tax includes 79 projects, with an additional 11 supplemental contingent on necessary funding, for a total of 90, a $61 million budget.
Despite tax revenues well exceeding original expectations, rising costs for projects at a growing rate compared with original estimates in 2021 are now beginning to eat up a sizable chunk of excess funds.
“A lot of these projects are coming in considerably over budget. We recently bid on one of our parks tax projects. It came in twice the budgeted amount. And we’re talking about a $1 million budget,” Atkins said. “What we’re looking at is some of the unencumbered money at the end of this tax is now starting to have to be moved into the projects that we’re actively working on.”
Atkins, who has been actively monitoring the trajectory of the tax along with city officials, said higher project costs are a challenge facing all of the city’s departments, particularly with materials and labor. An increase in costs is to be expected from year to year, but the latest estimates for some future projects have been drastically higher.
That includes projects like the Coleman Hawkins gazebo and stage relocation, the Hyde Park tennis court lighting project and Hyde Park shallow activity pool and pool house project, originally a $3.7 million budget that could swell.
“The cost of materials, the cost of labor has just skyrocketed. Last week alone, the cost of a yard of concrete went up $10 a yard. We’re feeling that with our projects,” Atkins said. “If this trend continues, that’s just going to eat up more and more of what could have been.”
While early discussions within the department centered around potential uses of additional funds like creating all-new parks tax projects, a combination of rising maintenance and project costs and the growing number of new or improved local facilities made them explore a different route to ensure funds would be available in future years to cover expenses for more than 50 park facilities.
The tax has performed well enough to allow the city to plan multiple supplemental projects on the list like the new Corby Grove pickleball complex and large-scale interior renovations to Bode Ice Arena.
“What we’re going to have to do is work our way through the list of projects we have, any money that is left, what we’re going to do is we’re going to establish a contingency fund for long term maintenance needs,” Atkins said. “We’re spending millions and millions of dollars on these facilities right now and we have no funding set aside for future maintenance of these facilities.”
Depending on the type of park facility, particularly larger indoor facilities like the Rec Center and Remington Nature Center, maintenance or large-scale repairs can soar to six or seven figures, whether its repairs for HVAC, roofing, parking lot resurfacing and more.
Funds could also be used to enhance or provide increased park security such as cameras or locks to prevent damage and reduce future costs on the city, Atkins said.
“As we start going forward, a certain percentage of our budgets each year will go into this contingency fund for long term replacement items,” Atkins said. “If the citizens want a new pickleball court complex. We’ve got to get better at getting the money for that course but at the same time setting back money that will grow. So when that needs replaced, the money’s already there. Let’s establish this fund so we do have some mechanism to take care of what we’re doing.”
The growth in parks sales tax revenue comes despite a steady decline in St. Joseph’s overall population, which now sits around 70,382. Despite that, with a healthy daytime population peaking over 82,000 each day, parks sales tax collections have remained strong with the help of commuters and travelers, though figures could change if the population declines further.
“The beauty of the sales tax is we’re able to take in taxes while people from outside the city are shopping, eating, drinking, whatever they’re doing while they’re here. So the citizens of St. Joe are getting to enjoy that money,” Atkins said.
Now halfway through the 10-year parks tax and with numerous projects across the city completed to date despite rising costs, Atkins is eager to continue checking off projects of high community interest.
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