The promise of the use tax is beginning to be fulfilled as Cape Girardeau municipal employees will see wage increases take effect at the beginning of their next pay period, starting Saturday.
The use tax -- a tax on online sales -- was approved by more than 62% of voters in November. The tax was proposed in order to help bolster employee salaries for the city. Dustin Ziebold, the city's finance director, said it is doing just that.
"That's the one big key. We promised we would put it toward our employees, and we have fulfilled that promise," Ziebold said.
The use tax is expected to generate an estimated $2.3 million to the city's general fund in the next fiscal year, starting July 1. Ziebold was able to use a limited history of taxable sales to come up with the figure, which is within the $2 million to $3 million range officials expected when proposing the tax, he said.
All $2.3 million, plus an additional $59,000, will be put toward implementing a new pay plan raising base salaries 11.7%, giving higher grades additional raises as well, calculated off the base rates.
Cape Girardeau will also be implementing a step system increasing wages in correlation with years of service.
"We're taking a two-pronged approach to it this time," Ziebold said.
Before the proposed raises, city employee wages had dipped well below national levels, with the city's median salary 18% below the national average. The low salaries were making it difficult for Cape Girardeau to keep existing, and recruit new, municipal employees.
The city normally operates with a little more than 400 employees. At the time of publication, the city has 363 employees and around 30 to 40 open postings on its website, Gina Snyder, the city's human resources director, said.
Since the raises were announced June 7, human resources has been able to advertise them online, garnering an increase of interest. The city received 55 applications between June 7 and 13 and its Indeed page -- a popular job listing site -- saw a 29% increase in applicants. Snyder said she hopes today's planned job fair for municipal positions will help continue the trend.
"We're hoping it will put more face-to-face (interactions) and help with (increasing interest) as well," Snyder said.
The fair will be from 2 to 7 p.m. in the Osage Centre.
The city has openings spread across its numerous departments, with public safety being the most prevalent.
Snyder said the city also offers excellent benefits and will be giving stipends to new employees with qualified certification experience.
For example, those hired in parks and public works with a CDL license are eligible for up to a $6,000 stipend over three years. The city also just implemented an experience stipend for jailers and communication officers that could equal the same amount, Snyder said.
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