Hosmer, Schrag clash over committee referral 

Springfield City Councilmember Craig Hosmer came to last night’s meeting ready to defend recently passed legislation as Mayor Jeff Schrag proposed an ordinance to suspend enforcement of a requirement that businesses pay their personal property taxes. 

A previous ordinance passed by council June 23 requires that businesses pay their personal property taxes – assessed on tangible business assets like equipment and furniture – as a condition of obtaining an occupational license, just as paying taxes is a requirement for vehicle registration. 

At an Aug. 19 council lunch meeting, Schrag introduced his new ordinance to suspend enforcement of the previously passed measure while council’s Plans & Policies Committee more fully vets the legislation. 

Last night’s council meeting included the first reading and public hearing on the mayor’s proposed ordinance to suspend enforcement of the requirement. 

Schrag relinquished his chair’s responsibilities for running the meeting during discussion of the ordinance, and Mayor Pro Tem Heather Hardinger took the gavel. Schrag explained that he was not recusing himself, but he noted he wanted to be free to engage in the discussion.  

Hosmer, who was sitting four seats away from the mayor, addressed City Attorney Jordan Paul at the podium to ask if the mayor would be providing testimony, noting that typically when a council member sponsors a bill, they offer a presentation. 

“Do you know any reason why the bill was offered?” he asked the attorney. 

Paul said it was because the code change did not go through committee, but then he corrected himself to say that it did go to Plans & Policies but was pulled by Hosmer from the committee before it was discussed. 

Hosmer noted he exercised his right to remove the bill from committee after it sat idle for months. 

“Is there any substantive arguments about the ordinance that you know of?” Hosmer asked. 

Paul declined to respond, referring the question to the mayor. 

Hosmer said the Greene County Assessor told council 60% of businesses don’t pay their property taxes, and there is no mechanism for enforcing payment. He added that Paul had done research to show that other cities, including Kansas City and St. Louis, have similar ordinances in place.  

Paul said it is his understanding that the measure is legally enforceable. 

Councilmember Brandon Jenson asked if staff had been made aware of any concerns expressed by businesses, and the city Finance Director David Holtmann said they had not. 

Councilmember Monica Horton asked for clarification on whether a bill is mandated to go through the committee process before it is taken up by council or if that is just a recommendation.  Paul said committee vetting of bills is merely encouraged.  

Horton said that there are a lot of methods by which bills are vetted outside of committee. She gave the example of her own recent bill, an amendment to zoning code about notification of nearby residents about applications for liquor permits. That was reviewed by city staff, the Planning & Zoning Commission, the Neighborhood Advisory Council and the full council and then approved, bypassing the committee process. 

“I just don’t want for us as council members to get locked into one particular way of doing things when there’s multiple ways of doing things,” she said. “This huge expectation that topics or bills are supposed to go to committee, I am not necessarily locked into that because I have seen this process work in multiple ways.” 

She said if there are lingering questions about the legislation, they should be asked of staff. 

“The only way that I see that I would support a bill like this is that we continue the enforcement, and if council wants to send it back to committee, I’m OK with that – but to suspend it just to suspend it, I’m not sure,” Horton said. “Like I said, with our process, it’s not mandated; it’s just encouraged.”  

Councilmember Bruce Adib-Yazdi asked Paul, the city attorney, if anything precipitated the need to suspend the current ordinance. Paul replied that it is not a staff item but a council item. 

Hosmer asked Schrag directly if he had heard from a specific business about a specific concern, and Schrag answered no. 

“I have not talked to a specific business about a specific issue,” Schrag said. “My concern is more that I think it is a complex issue, and I would like it to be vetted to make sure there aren’t any unintended consequences.” 

Hosmer countered by asking what part of the measure is complex while noting most of the process is completed through an online form. He also called the move “horrible public policy.” 

“Without any reason for why we’re doing it – it’s not even been enforced yet – we want to send it back to committee, and what that means is code for it’s going to die,” Hosmer said. 

He added that paying taxes is a compact that people join into to say that they will pay their fair share. When they don’t, he said, it’s fundamentally unfair. 

Hosmer said, “If you’ve got a valid reason for why we shouldn’t be collecting the personal property tax that’s not paid in this city to fund essential services of this city, we need to know in a public hearing.” 

Schrag said at the outset of discussion that he had prepared a statement about his support of the ordinance to suspend, but at no point during the meeting did he read those remarks. 

Council is scheduled to vote on the measure to suspend enforcement of the newly passed section of code and refer it to committee at its Sept. 8 meeting.