Cape County preliminary 2017 budget receives commission approval, projects flat sales-tax revenue

The Cape Girardeau County Commission approved a preliminary 2017 budget Monday that projects flat sales-tax revenue but boosts pay for employees.

County Auditor Pete Frazier told commissioners the budget includes no increase in sales-tax revenue. In recent years, revenue has grown 1 percent to 2 percent annually.

Frazier blamed the flat-revenue projection on consumers increasingly buying items online.

“So we are losing out on the opportunity to capture that sales tax,” he said.

The nearly $17 million spending plan for the fiscal year that begins Jan. 1 is based on projected revenue of $18.2 million. That figure includes beginning fund balances totaling a combined $2.5 million, according to budget documents.

Frazier said the budget includes a 2 percent cost-of-living increase for about 200 county employees.

The budget calls for spending $12.68 million for general county operations, $3.17 million for roads and bridges and $1.09 million for assessment services.

Sales-tax revenue to fund general county operations is projected to total $7.27 million in 2017.

Another $4.5 million is expected to come from fines, fees, grants and other revenue sources, Frazier said.

The county’s road and bridge fund is expected to receive $1.6 million in sales-tax revenue.

Other sources, primarily money from the state for road and bridge improvements, are expected to generate another $1.3 million.

The budget estimates income of more than $905,000 for assessment services, including $577,000 from its share of tax revenue.

Frazier said the budget is based on conservative estimates. The county government annually spends 93 percent to 97 percent of budgeted appropriations, he told commissioners.

Frazier was the only person to speak at a public hearing on the budget. Commissioners are expected to give final approval to the budget Jan. 9 after 2016 year-end balances have been calculated.

After the meeting, Presiding Commissioner Clint Tracy said, “Our revenue drives the budget.”

Much of the county government’s revenue comes from sales tax.

“We definitely keep an eye on sales-tax revenue,” Tracy said.

Tracy said the commission won’t spend more than it can afford.

“We are not going to pass another tax to supplement county government,” he said.

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