BUDGET OUTLOOK GLOOMY; DECLINING REVENUES WILL RAISE CITY FEES

Cape Girardeau City Council members Monday took their first look at a gloomy synopsis of the city's operating budget for the next fiscal year, which begins July 1.

City administration officials told the council that the city no longer will be able to fund programs and services solely with tax revenue generated from growth.

The council took no action at the special meeting Monday, but heard reports on proposals to increase fees for some programs and services, and impose fees in areas that now are free to the public.

City Manager J. Ronald Fischer and Assistant City Manager Al Stoverink said city tax revenue particularly income from sales tax receipts continues to decline, which has resulted in revenue shortfalls in a number of budget categories.

Since the 1988-89 fiscal year, the annual increase in sales tax revenue has dropped from nearly 7.4 percent to less than 1 percent growth this year.

"Last year when we did the budget, we all agreed that 2 percent growth would be as optimistic as we could get," said Stoverink. "That may turn out to be too optimistic."

Sales tax receipts weren't the only tax collections that plunged this year, said Stoverink. He said that while property tax collections exceeded budget projections, hotel and restaurant tax receipts were "down considerably," and motor fuel taxes were "down about $45,000."

The drop in city revenue means the council likely will consider fee increases for the city's parks and recreation programs and ways to offset revenue shortfalls in the solid waste and sewer funds.

Stoverink said he expects an 11.1 percent revenue deficit in the city's solid waste fund and a 17.4 percent deficit in the sewer fund.

"We have not had a tax increase in the city since 1962," said Stoverink. "We've essentially been living off the growth. We're not going to be able to do that anymore.

"One of the key issues you have to look at is taxes versus user charges. To what extent do you want programs to pay for themselves?"

In the parks and recreation department, fee increases already recommended by the Parks and Recreation Advisory Board are expected to generate an additional $95,000 for the general fund.

That money would help offset a current city subsidy of almost $1 million. Most of that subsidy $608,500 is earmarked for park maintenance.

Expected revenue increases generated by the parks and recreation fee hikes include:

$28,000 from increased fees at the Jaycees Municipal Golf Course. The golf course is expected to operate "in the black" next year, with no city subsidy, Stoverink said.

$19,600 from increased fees for use of the A.C. Brase Arena Building, which also would enable the city to end its subsidy of the facility.

$27,300 from increased fees at Central Swimming Pool, decreasing the city's annual subsidy to $137,000; and $9,600 from increased fees at Capaha Pool, decreasing the subsidy to $17,500.

$10,800 from increased fees for the various city recreation programs, decreasing the city subsidy to $123,000.

Mayor Gene Rhodes asked the staff to compile how much revenue could be generated if free recreation, pool and golf passes for city employees and citizen advisory board members was discontinued.

Fischer and Stoverink also asked the council if they wanted to consider charging for non-emergency public safety services. Stoverink said the police department last year provided escort for 320 funerals, which at $25 each would generate $8,000.

The police department last year also provided escort 861 times for businesses making late-night deposits of cash receipts, which would generate $21,525 at $25 per escort.

Stoverink also said the department provided service for 1,860 "lockouts" last year. These occur when people lock themselves out of their vehicles or homes. Stoverink questioned whether the city should charge for the service or eliminate it all together.

"You incur liability by offering this service," he said. "The issue is, should you provide these services, and if you're going to, do you want to recoup some of the costs?"

Council members said they would favor charging funeral homes and businesses for the police escorts, but thought the "lockout" service should either be eliminated or remain free to the public.

"What do we pay taxes for?" said Rhodes. "You're just nit-picking for every little thing when you do that. When a customer comes to Cape to shop and locks their keys in their car, and then you're going to say it's $5 for something that takes maybe five minutes, I can't see that."

Councilman David Limbaugh said he'd rather suspend the service that charge a fee. Council member Mary Wulfers said she didn't think the city should compete with locksmiths by providing the free service.

"I don't think that's right," she said. "That's what a locksmith's for. Don't you think that's debatable; that you're doing something that's in competition with private business?"

Wulfers said she recently was charged $35 by a locksmith after she locked herself out of the house. "Even at a conservative $30 each time, that's $56,000 in business a year that locksmiths aren't doing," she said.

Stoverink also suggested the possibility of charging businesses for repeated false fire calls from mechanical fire alarms. If all the fees were implemented for the various non-emergency public services, it would add up to $51,000 in revenue.