Editorial

Balancing act: City's budget

Cape Girardeau officials are in a situation no public servant wants to confront but periodically must because of economic factors that are sometimes beyond the city's control.

This year's city budgeting process is proving to be a challenge. Council members are looking at the possibility of filling a gap between anticipated revenue and spending needs that exceed $800,000.

That includes an expected shortfall of $661,000 in operating revenue and another $200,000 needed to replenish the city's operating reserves.

The interim city manager, Ken Eftink, has put together an impressive 10-page list of potential cuts in services and operations, but taken together they would save an estimated $495,000, well below what's needed. Other possibilities include raising fees and rates on some services, including sewer, water and trash charges.

At the same time the city is grappling with the budget, it also is trying to figure out the best course of action regarding a lease with Commander Premier, an airplane manufacturing, repair and parts company that currently occupies a city-owned hangar at the Cape Girardeau Regional Airport and owes $354,000 in back rent.

The other major loss of revenue is in declining sales-tax receipts. Sales taxes are the city's major source of revenue.

Coming up with these crucial budget solutions will be among the most important decisions made by the city council in recent memory.

These elected officials will have to strike a careful balance between what the city needs and the impact their choices could have on taxpayers in the future.

For example, some consideration might be given to some temporary fee and rate increases that could be rescinded when the economy rebounds and the city's sales-tax revenue resumes its steady growth pattern.

Whatever city officials come up with, they will need to be creative while ensuring that essential services are provided at levels demanded and expected by city residents.

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