Creve Coeur City Council members voted 6-1 Monday night to reduce property tax levels to $.070 for the residential rate and $.075 for commercial and agricultural rates.
Ward 1 Councilmember David Kreuter was the lone dissenting vote.
Earlier this month, Ward 4 Counciwoman Jeanne Rhoades proposed setting the 2012 and 2013 rate at $.075 before moving Monday to the lower rate.
Current levels are $.084 for residential, $.079 commercial and $.091 for agricultural property.
Rhoades argued Monday that the city has a "strong, secure revenue source" due to the 1 percent sales tax approved by voters in November 2010.
In a presentation to council, Creve Coeur Finance Director Dan Smith said the city could lose as much as $2.7 million dollars in revenue over a five year period if the current tax rate levels were cut in half from their existing rates to $.042 for residential, $.0395 for commercial, and $.0455 for agricultural, along with projections on how much changes in state tax law regarding automobile purchases would impact city coffers. Smith did allow that those estimates were not ironclad from county officials.
City residents David Caldwell and Robert Kent, among others, have argued for eliminating the property tax for several reasons, including the fact that Creve Coeur has not identified plans to spend its surplus.
Ward 3 Councilwoman Charlotte D'Alfonso said she thought a minor reduction would serve as a "gesture of goodwill," while city leaders examine plans for the surplus.
Editor's Note: a previous version of this story initially cited a five year projection based in part on setting the residential property tax rate at $.075, not $.042. That project should have also included changes to the commercial and agricultural rates, which has been corrected, along with existing commercial and agricultural rates.
Background information on city tax levels and associated projections can be found on pages 473-477 of Monday's city council agenda.
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