Cape council discusses finance task force's recommendations

The Cape Girardeau City Council debated two fundamental issues Wednesday night regarding the Citizens Finance Task Force's four-pronged tax recommendation aimed at boosting operating revenue and paying for three major projects.

It was the first time the council has met to discuss the recommendation in length and the council, minus councilman Jay Purcell, deliberated for 90 minutes on whether voters should be asked to vote for four separate taxes or one big increase in sales tax; and whether an aquatic center should be included in a package meant to address needs.

The council came to no conclusions Wednesday night, but will hold a special meeting next Tuesday with members of the task force to find out why that committee came to certain determinations.

The council is in agreement that taxes need to be raised, particularly to fund operating costs, cover new equipment and improve or replace outdated facilities.

However, there was some debate on how those funds should be raised.

The task force's plan called for a 1/4-cent increase in sales tax, the institution of a use tax which would tax all out-of-state purchases made in the city of more than $2,000; the extension of a 10-cent property tax levy and an increase in stormwater fees.

The task force decided to go with a multi-pronged tax proposal because it would spread out the effects on different people, unlike a city-employee committee that recommended a 3/4-cent sales tax increase.

Big items

The biggest items recommended by the task force would cost $21.4 million over the next 20 years. They include $4.5 million for equipment purchases, $3.6 million for stormwater projects, $1.8 million for a new fire station, nearly $5 million for an addition to the police station and $6.5 million for an aquatic center. This is in addition to a boost to the city's operating expenses, which would increase by $727,000 the first year and increase to $1.8 million by the fifth year.

Mayor Jay Knudtson said he thought there was little chance that all four taxes would pass, so the council has to decide if it wants to risk having only a portion of the taxes passed or taking an all-or-nothing approach.

"I'm one of those go-for-broke guys," said councilman Hugh White.

White said it might be easier communicating to the public what they'll be getting if they have just one vote.

Councilmen Charlie Herbst and Matt Hopkins both said they prefer the four-vote method. Hopkins said he didn't think the business community would back a major hike in sales tax. Herbst said he trusted the findings of the task force, a committee made up of 12 Cape Girardeau residents appointed by the council.

There was also much debate over the inclusion of the aquatic center in the tax package. The task force saw the aquatic center as a replacement for Capaha Pool. The task force also saw it as an economic development device which would bring in visitors to spend money in Cape Girardeau.

The council recognized this Tuesday, but was unsure how the general public would react. Knudtson said the idea could be popular enough to carry the rest of the package; or it could drag down the rest of the package if people don't recognize the benefits.

bmiller@semissourian.com

335-6611, extension 127