Branson Board approves first reading of CID extension ordinance after heated debate

At its August 26, 2025, meeting the Branson Board of Aldermen (Board) passed for its First Reading “an ordinance approving the extension of the term of the Historic Downtown Branson Community Improvement District [CID], approving the Second Amended and restated Cooperative Agreement between that District and the City of Branson, Missouri, and authorizing the mayor to execute the Agreement.”

The Staff Report for this agenda item said, “The Historic Downtown Branson CID was established by Ordinance No. 2006-056 on April 19, 2006, which approved the Petition for the Establishment of the District in accordance with the provisions of the CID Act, Sections 67.1401 through 67.1571 of the Revised Statutes of Missouri. The term of existence of the CID was established to be 20 years, which, without further action of the board of aldermen, will expire on April 19, 2026. Since its formation, the CID has established, operated, expanded and otherwise improved a free downtown trolley service and provided a variety of other services in the Historic Downtown Branson area.

“Section 67.1481 of the CID Act states, “prior to the expiration of the term of a district, a municipality may adopt an ordinance to extend the term of the existence of a district after holding a public hearing on the proposed extension.” The CID is able to provide its services through the imposition of a 1% sales tax within CID boundaries. The extension of the term of the CID does not extend the sales tax. Extension of the sales tax shall be determined by an election of the qualified voters of the CID pursuant to the CID Act.”

At the direction of the entire Board during an Executive Session, the city administrator and staff were negotiating an extension and a new agreement with the CID. Even though the negotiations were still ongoing, the Staff Report for the item states, “This item was requested to be put on the August 26, 2025, agenda by Alderman Schulz and Alderman Lucas.” Schulz said that his rationale for preempting the process was that time was running out to extend the CID and get the voter approval for extending the CID Tax.

Alderman LeBlanc, while expressing full support for the CID, moved to amend the proposed ordinance to reduce its ten (10) year extension period to three (3) years, indicating that would provide additional time to gather data and finish the negotiations. Alderman Schulz was concerned about voter reaction to having to vote on the CID Tax twice: once for the three-year extension and again for a future extension at the end of the three years.

The proposed ordinance also contains a provision for “City Enhanced Maintenance Activity Contributions. It says, “Beginning with the fiscal year of January 1, 2026, to December 31, 2026, the District shall include in its annual budget funds for contributions to the City for City Enhanced Maintenance Activity. The amount of such contribution to be paid for 2026 shall be the sum of forty-five thousand dollars ($45,000.00), to be paid to the City no later than December 31, 2026… the amount of the District contribution to the City for City Enhanced Maintenance Activity for fiscal year 2027 and each following year while this Agreement remains in effect shall be nine percent (9%) of the amount of the District Annual Sales Tax Receipts for such fiscal year, up to a maximum annual amount of one hundred twenty thousand dollars ($120,000.00)” and that “the District shall be relieved of any obligation to make a contribution to the City for any fiscal year in which the District Annual Sales Tax Receipts are less than six hundred seventy thousand dollars ($670,000.00).”

The amended ordinance passed its First Reading by a 3-2 vote. Aldermen Cooper, Denham and LeBlanc voted “Yes,” and Aldermen Lucas and Schulz voted “No.” If the Board doesn’t remove the ordinance from the Consent Agenda for the September 9, 2025, meeting, it will become final when it approves the Consent Agenda at the meeting.