Cape Council OKs ARP strategy, considers internet sales tax election date

By a 6-0 vote, the Cape Girardeau City Council endorsed a "strategy" for spending American Rescue Plan (ARP) federal funds once the municipality gets the estimated $8.28 million.

Dustin Ziebold, the city's finance director, said he and his staff pored through 151 pages of federal guidance, called an "interim final ruling," to local government entities in constructing the proposed spending plan.

In accordance with ARP instructions, Ziebold proposed the City Council disburse the yet-to-be received funds in the following ways:

• $4,580,600 for lost public sector revenue during the COVID-19 pandemic, principally shortfalls in anticipated revenue from the following taxes: general fund, casino, hotel/motel/restaurant and motor fuel.
• $2,950,000 for sewer and stormwater infrastructure.
• $750,000 for other programs and services, detailed below.

Other programs/services

Ziebold said city staff has identified the following objectives:

• A city notification system (e.g., boil-water orders, broken water main alerts) and a city mobile app (e.g., bill pay options for residents).
• Capital investment in the city app and for bill-pay kiosks.
• Support for vulnerable populations, to include Shawnee Park programming and a grant program for home repair, weatherization and HVAC in low-income areas.
• Tuition reimbursement to increase opportunity for vulnerable populations.
• One-time payment to an organization for homeless assistance.

The Biden administration has said ARP funds will be distributed in two batches, with the second payment to come 12 months following the first.

Ziebold, who said staff will continue to vet the proposal to ensure it complies with federal instructions, told the council all monies, as per the guidelines, must be expended by Dec. 31, 2024.

Internet sales tax

The City Council intends to use study session time at its next meeting, June 21, to discuss placing a referendum on the Nov. 2 ballot to permit collection of an internet sales tax.

The Missouri Legislature approved the so-called "Wayfair" bill before adjourning May 14 and each participating municipality must now ask its residents to OK the levy.

Gov. Mike Parson, at press time, had not signed the legislation, but seems certain to do so before mid-July since Parson identified it as one of his priorities in his State of the State address in January.

Mayor Bob Fox said the council will need to consider taking first-reading action on placing the levy before voters by July 19, with second and third readings (final) by Aug. 2, since the state election authority needs a decision no later than Aug. 24 in order to make the November date possible.