Cape Girardeau mayor's race questionnaire: Matt Hopkins

Matt Hopkins

Age: 46

Spouse: Barbara

Children: Justin, Melissa

Occupation: Account representative

Employer: Technology and Networking /ASC

Previous offices: Cape Girardeau City Council 2000-2008.

Question 1: Over the past decade, Cape Girardeau used incentives to spur job creation, including using sales tax revenue to support the Sears and Kohl's development and renovation of Town Plaza. Have these incentives been worth the cost? If so, should they be used more aggressively? If not, what alternatives would you suggest the city try?

Answer: Yes, the incentives have been extremely worthwhile as they helped maintain existing jobs, facilitated the creation of new jobs and economic development in Cape. Kohl's, one of the top choices by residents for new business, is a very good example of the city using incentives to attract new ventures. Without the benefit of the tax incentives to build here, the jobs and sales tax revenue generated would be benefiting another economic area. Sears, to remain competitive in their retail market, faced the need for incentives from the city to remain in Cape, thus retaining jobs in Cape.

The Town Plaza merchants, including the developer for the former Sears building, benefited from a Community Improvement District (CID) designation which allows for an increase in sales tax for businesses in the district. The revenue was instrumental in funding the renovations to a prime commercial location in the heart of Cape. The 40-year-old Sears building now houses additional retail space and the NARS call center which employees hundreds of people. The monies are not coming out of city sales tax.

Question 2: In August, voters will be asked to renew the half-cent sales tax for road construction known as TTF, which provides a little more than $4 million annually. If voters say no, should it be resubmitted? What would be the consequences of a defeat?

Answer: Definitely resubmitted. TTF is one of the most successful programs in Cape and is a critical part of infrastructure development of our city. The revenue from the tax is used to fund most construction, improvements and repairs of roads in the city. Through the construction of new roads, turn lanes, signal lights, street lights, sidewalks, widening of roads and intersections, TTF projects improve traffic flow and mitigate accidents in existing intersections that have become functionally inadequate. Examples of these types of projects are the widening/improvements of many existing main thoroughfares: Bloomfield, Siemers Drive, Silver Springs, Independence, Broadway, Mount Auburn and construction of LaSalle Avenue infrastructure which is vital to the economic growth at the 102 interchange on I-55.

The adverse consequences of a defeat of TTF renewal would critically limit the funds available for road construction/improvements thus slowing new road construction. The city would struggle to afford new roads or maintain existing roads at the level they are currently at. As Cape continues to grow, it is imperative that we have a vision for solid system of roads to travel from one point in town to another.

Question 3: The city is paying almost $200,000 a year to pay bonds on the airport building housing Commander Premier Aircraft Corp. The company owes $500,000 in back rent. Should the city wait for a promised buyout of the company or evict it? Explain.

Answer: If the financing is not in place in the next 60 days the city should remove Commander Premier from the airport facility. There are currently other prospects who are interested in the building, and we wouldn't want to miss an opportunity to place a viable tenant in the building.

Question 4: City employees have not received a raise for two years. In the same period, the city's unrestricted reserves have dwindled to almost nothing. If the next city budget can either give raises or rebuild the reserve fund, which will you choose and why?

Answer: This is a simple question that has a complex answer. One-time addition of revenue to the unrestricted funds in a fiscal year is very different than the impact of an increase in wages to the city's budget in subsequent years.

The unrestricted reserves are funds that are not set aside by the city charter. The city has an emergency reserve fund, as mandated by the charter, which is a percentage of the budget. Typically, the restricted reserve fund has a balance in the $5 million range. Unrestricted reserves can fluctuate between a few hundred thousand and a $1 million depending on the actual revenue and expenses of the city during a given fiscal year.

Giving raises to city employees is based upon a number of factors. One of the most important factors the council would have to consider is revenue projections for coming year and the ability to sustain the expenditure in subsequent years. In years past it has been possible to give raises and increase the unrestricted reserves. It depends on the specific set of circumstances. The city finance director has been diligent in providing information to the council to make sound financial decisions.

If the next city budget can sustain a raise for employees in subsequent years, I would favor increasing wages for city employees.