The Cape Girardeau City Council scrapped a plan Tuesday night to put a fire sales tax measure on the April ballot, reversing a decision made just a week earlier.
The council voted 5-2 against putting the tax issue on the April ballot. Council members Evelyn Boardman and Hugh White cast the dissenting votes at the nearly two-hour council meeting held in the city manager's office.
Mayor Jay Knudtson called on the council to pass up the April vote, suggesting that city officials first need to cut some expenses to demonstrate fiscal responsibility to the voters.
He suggested a quarter-cent fire sales tax might have a better chance to pass if put before the voters in August.
"We can ill afford to fail on this tax," the mayor said.
Knudtson said city officials need time to build public trust. "The citizens don't feel we have tightened our belt," he said. "A lot of citizens don't trust us."
The council took no action on whether to put a tax issue on the August ballot, saying that issue will be addressed at a later date. The council must act by May to get the issue on the August ballot, city officials said.
On Tuesday, council members didn't discuss whether such a tax should carry a sunset provision that would automatically terminate the tax after a specified number of years. A majority of council members initially said last week they favored a permanent tax, sparking public criticism. When contacted later in the week, several council members had changed their minds.
Knudtson said the council will begin discussing possible financial belt-tightening moves in February.
City officials said revenue from existing sales taxes already is running below budget projections, which could force some spending cuts before the current fiscal year ends June 30.
Councilman Jay Purcell agreed that the city needs to cut spending before seeking a tax vote.
Purcell last week cast the only vote against putting the issue on the April ballot, saying he first wanted a commitment from city officials to reduce nonessential services.
He suggested Tuesday that the city staff and council should look to cut or reduce some services and programs to find added revenue to replace aging, deteriorating fire trucks. "You have to fund your basic needs first," he said.
Several council members suggested the city needs to address public safety needs even if it means reducing services in other areas such as parks and recreation.
But Councilman Hugh White said there would be a public outcry if the city reduced services or programs, including those in parks and recreation.
City manager Doug Leslie said the current budget is "balanced on the backs of employees." City employees didn't get pay raises this year because of the tight budget.
Councilwoman Evelyn Boardman said the city has cut expenses over the years. She said the city needs the fire tax and shouldn't delay putting the issue before the voters.
The tax would generate an estimated $2 million annually for the fire department and indirectly free up money for police department renovations and increased salaries for officers, city officials said.
Councilman Charlie Herbst said many residents object to any tax proposal at this time.
Councilman Matt Hopkins said even if sales tax revenue grows, it won't increase enough to meet climbing expenses, including rising health insurance costs.
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