CITY, COUNTY TAX SHOWS RECORD GAIN

The City of Cape Girardeau and Cape Girardeau County had record breaking sales tax collections in 1994, something area officials view both as signs of a strong economy and the county's growing role as a regional hub.

City Collector Mary Thompson reported Cape Girardeau's 1-cent sales tax for general revenue totaled $5,981,939 this year, an 11.4 percent growth over 1993. In dollars, that increase amounts to $611,106.

Cape Girardeau County Auditor H. Weldon Macke reported the county's half-cent sale tax totaled $3,819,343, an increase of 10.7 percent. That increase translates into $369,000 more for the county's general revenue fund.

Some of the increased sales tax funds will be needed by city and county governments to offset increased costs for things like insurance and salaries, but it will also provide an opportunity to increase reserve funds or reach out to address other needs.

Macke, and Cape Girardeau Chamber of Commerce President John Mehner, agree the large growth reflects the continued development of Cape Girardeau as a regional center for everything from retail and entertainment to medical care and employment.

"The more development that we have, the more people we get who come to Cape," said Mehner. "It just continues to solidify our position as a regional hub. So, we draw the people and when you draw the people you continue to get tax dollars."

With the kind of development under way, Macke predicted the regional role for Cape Girardeau would only increase. And as a result, future sales tax receipts will increase.

"I don't know if there will be any stabilizing once this is recognized as a business mecca," Macke said.

"I think the growth is partly due to the economy, but we have new retail outlets coming in all the time."

Associate Commissioner Larry Bock said the large number of new retail outlets being built in the county will only enhance sales tax revenues.

Mehner said most of the retailers he has talked with are happy with the way sales are going this year.

Presiding Commissioner Gene Huckstep said he believes the large amount of construction in the county, including the Cape LaCroix-Walker Creek flood control project in Cape Girardeau, is giving sales taxes a huge boost.

"The construction economy by itself can equal a large part of this 10 percent increase," said Huckstep.

Increased car sales is also another factor, Huckstep said.

Both the city and county received record monthly sales tax checks, in addition to posting a record total at the end of the year.

For the first time ever, Cape Girardeau had two monthly checks more than $800,000, including one for $827,397 in September, which is a monthly record.

Thompson said every monthly check was greater than the same month a year ago. In December, city tax receipts were $724,461, compared to $623,518 in December 1993.

Receipts from the city's quarter-cent sales tax for the flood control project grew to $1,495,307 this year, up from last year's figure of $1,341,537.

The county's largest single month check was also received in September, with receipts of $520,000. The previous record was set in March with receipts of $510,000.

In December, the county's check was for $452,652, compared to $397,343 in December 1993.

Macke said the county's 1994 budget is based on sales tax growth of 3 percent. In planning the 1995 budget, Macke said sales tax revenue will be projected at a growth rate of 5 percent.

"We have plenty of increased costs to use this money on," he said. "But with this kind of growth, we should still take in more money than what our budget has increased."

Sales taxes are collected by the Missouri Department of Revenue from businesses and distributed to local taxing entities on a monthly basis.