CAPE'S PROPERTY VALUES ON THE RISE

Cape Girardeau's revenue from property taxes has nearly doubled over the past 10 years because of levy hikes and an ever-growing assessed valuation.

Property taxes brought in $685,000 in 1985-86. In 1993-94, they brought in $1.25 million. This fiscal year, property taxes will generate an estimated $1.3 million, a 6 percent increase.

The 1994-95 fiscal year ends June 30 and Finance Director John Richbourg is hard at work putting the finishing touches on the fiscal 1996 budget.

Richbourg's neat attire contrasts sharply with his basement office at City Hall where he crunches the numbers.

His small office is cluttered with stacks of computer printouts and old Wall Street Journals on the floor. His desk is covered with financial paperwork. A stream of paper cascades from his calculator across his desk and down to the floor.

Richbourg views property taxes as just a small part of the budget equation.

Unlike school districts, the city doesn't depend greatly on property taxes.

Property tax revenue amounts to 7 percent of the city's $12.5 million general fund budget and 3.8 percent of the $33.9 million in budgeted city revenue for 1994-95.

In contrast, the city's 1-cent sales tax accounts for nearly half the general fund revenue. The city's general fund pays for basic municipal services, such as police and fire protection, street and park maintenance, and administration.

Other services such as water, sewer and trash collection are paid for with fees.

The city's property tax levy stands at 47 cents. The tax rate was increased 13 cents between 1985 and 1993 but has remained steady since then. City officials expect to keep the tax rate at the same level for the new fiscal year.

Voter approval would be needed to raise the rate.

Property tax revenue is directly linked to the city's assessed valuation, which has grown by more than $70 million the past 10 fiscal years, from $204 million in 1985-86 to more than $274 million in 1994-95.

Richbourg said the city's assessed valuation has increased annually by a modest 3.3 percent on average since 1986.

But this fiscal year, the assessed valuation is up 6 percent.

"Basically, two things will drive the assessed valuation up," Richbourg said, "either new development or an increase in the value of existing property. That has been happening, too, recently because I know housing prices have increased."

The assessed valuation of real estate, personal property and railroads and utilities make up the total assessed valuation.

Cape Girardeau County Assessor Jerry Reynolds said assessed valuation of real estate represents development. "Essentially, it is new construction."

Reynolds said the assessed valuation of personal property has grown in the last few years. "It is becoming more of a factor than it used to be."

Personal property is more than just cars and trucks. For many manufacturing plants, the equipment or personal property is considerable.

"What you got is a metal building covering up expensive equipment," Reynolds said.

But real estate valuations continue to be the driving force in the assessment picture, amounting to about 75 percent of the city's total assessed valuation and about 70 percent of the county's. Personal property and railroad and utility valuations make up the remainder.

As more and more vacant land and farmland are developed, the assessed valuation climbs.

Businesses with large buildings such as Lowe's and Wal-Mart help drive up the assessed valuation in Cape Girardeau, he said.

Lowe's, for example, adds a $1 million to the assessed valuation, Reynolds said.

The county assessor said the total assessed valuation in Cape Girardeau County, including Cape Girardeau, increases about $20-plus million a year.

The increase alone is greater than the assessed valuation of some counties, he said.

Reynolds is confident the county's assessed valuation will continue to grow.

"I think this year is going to be another good year," he said.