By Ben McCarthy
Voters of the Village of Loch Lloyd will see a first of its kind sales tax on their April ballot. Board of Trustees Chairman, Randal Schlutz, tells the Telegraph that the gated community in Cass County will need new revenues within the next two years, and the five-person Board saw the two-part measure as the most pragmatic way forward.
“We’ve run out of the revenue we’ve been able to generate from new home building permits – there are no more homes to build,” Schlutz said. “After looking at the different funding options, a decision was made that a sales tax (along with a use tax) would be a good approach.”
Historically, the Village has enjoyed low expenses and generated enough revenue from building permits to cover costs. The 1% sales tax will be applied to qualifying items sold within the Village. The primary item subject to the tax will be Country Club dues and sales at the Club. Schultz says that about half the club members live outside of the Village, thus sharing the tax burden with residents almost equally. With the passage of both measures, Schultz says the Village would be able to generate $150,000 to $190,000 annually.
“We looked at raising the funding through property taxes on the houses, but we didn’t want to burden senior residents, who may not belong to the club,” Schlutz said. “This was the best way to spread the costs around.”
The second question will ask voters to pass a 1% Use Tax on purchases made online. Under Missouri law, the use tax will only be valid if the sales tax also passes. The current sales tax rate for Loch Lloyd purchases is 5.875%, and if passed the tax would be 6.875%. By comparison, sales taxes in nearby communities, such as Belton (10.1%), Overland Park (10.1%), and Martin City (9.49%) would still be higher. The Village and the Trustees would hold the ability to reduce the tax at a later date, if it is determined that the collected revenues are exceeding the needs of the community. Schultz says they have to secure new revenues to help run Village operations before expenses begin to outpace expenditures in the next two years, with both specific costs in mind, as well broader future needs.
“We have to cover basic costs, such as security, maintenance, and accidents,” Schlutz said. “We don’t have unique expenditures, but we would like to develop our emergency preparedness.”
Schlutz does mention the purchase of communication devices as well as emergency backpacks (“for if a tornado came through”) as being near the top of their wish list, but also acknowledges the Village could look to hire new personnel in the future, such as an Administrative Assistant, or even a City Manager.
Schultz’s contention that there’s no longer any room to build homes at Loch Lloyd was disputed by residents within the community. Residents spoke to the Telegraph on the condition of anonymity, pointing to a new Land Use Master Plan which enforces a 150-foot building to building buffer on future developments, decreasing density rather than halting housing.
As of 2023, there were 941 residents and 450 homes in the Village of Loch Lloyd. Schlutz says that if the ballot measures fail, the Board would have to craft new proposals quickly to meet the economic realities of caring for the community.
“We’re looking at the safety and well-being of our residents, and just trying to secure the money that any municipality would need in order to replace lost revenues,” Schulz said. “If this fails, we would have to go back to the people to find new revenues before our expenditures begin exceeding revenues in these next two years.”