CITY TIGHTENS ITS BELT: MAJOR PROJECTS WILL CONTINUE

At the start of 1991, Cape Girardeau City Manager J. Ronald Fischer was optimistic that a strong retail sales base in Cape Girardeau would lead to new industrial and residential growth.

But he also warned that if the economy receded, the city's long-term planning efforts of the past few years likely would reach only partial fruition.

The city manager's fears proved prophetic as the city for the first time in years saw sales tax revenues sag in 1991, threatening several ambitious capital improvements projects.

But Fischer said many critical projects that already are funded will proceed in 1992. He said a major flood control project, the Lexington Avenue extension from Route W to Perryville Road, and completion of north- and west-end sewer extensions will spur residential and commercial development, despite a stagnant local economy.

"The capital improvement projects that the city has ready to go and will be under construction in 1992 won't be affected by a revenue shortfall," he said. "That funding already is in place, and those projects won't require additional taxes."

Construction recently began on the $35 million Cape LaCroix Creek/Walker Branch flood control project. Funded jointly by the city and the U.S. Army Corps of Engineers, the project includes channel improvements and bridge reconstruction along the two flood-prone creeks.

Dumey Excavating of Oran and Brenda Kay Construction of Cape Girardeau are contractors on the $7.2 million first phase of the three-phase project.

In 1988, Cape Girardeau voters approved a 10-year, quarter-cent sales tax to fund the city's $9 million share of the project.

"The city's portion of this project so far has mainly been in land acquisition costs," said Fischer. "Now, five bridges will be started in construction this year on the Walker Branch portion of the project."

Bridges will be replaced at the city's expense on Bloomfield Road, Kingsway Drive, and Independence, Themis, and Bessie streets.

"With these projects, the design work is completed and the rights of way and easements are all paid for, so construction will start this summer," Fischer said.

The Lexington project in 1991 included construction of the northern arterial street from Route W to Carolina Lane. Fischer said the street this year will be extended as far east as Perryville Road, and work could start to connect the route with the existing eastern segment of Lexington that connects with Cape Rock Drive.

The Missouri Highway and Transportation Department already has let a contract for a five-lane bridge over Cape LaCroix Creek and a signalized intersection with Kingshighway at Mount Auburn Road.

The street eventually will connect with Highway 177 on the city's east end, and will provide an east-west artery for traffic in the city's northern residential areas.

"The state will be opening bids for the extension of Lexington east from Carolina to Perryville Road in January," Fischer said.

"The section to existing Lex~ington to the east could possibly be bid and construction started in 1992. That would tie Cape Rock to Route W and Kingshighway via Lexington."

Fischer said trunk sewer extensions to the northern residential areas along Lexington and Route W also will be constructed this year. Those sewers, combined with sewer extensions recently completed west of Interstate 55, will open new areas of the city for both residential and commercial development, he said.

"I think Lexington itself will be a big boom for the city in terms of residential development," said Fischer. "I also think sewers that we have been putting in the last three years out on the west side of Interstate 55 are going to mean some commercial development there."

The city manager also said recent sewer extensions to the intersection of Route 61 and I-55 likely will open the largely undeveloped area west of Cape County Park for commercial development.

"All the infrastructure is in place for these areas," he said. "I don't necessarily see a boom for commercial development in '92, but development on the west side of I-55 and the intersection of 61 and I-55 are two hot spots we've got."

Fischer also said the transition from a privately owned water system to a municipal system will begin in 1992.

In November, voters approved the acquisition of the water system from Union Electric. An engineering firm, Mid-Missouri Engineering Corp., which operates a number of other municipal water systems, will run the system under a five-year contract with the city, Fischer said.

"The acquisition of the city water system is a key thing that we hope by May we'll be able to complete with Union Electric," he said. "We plan to submit our proposal to the Public Service Commission for their approval in the next couple weeks."

Fischer said the city council late in 1991 asked that use of the city's tourism and economic development funds be evaluated, a process that will continue this year.

The funds are financed by a gross receipts tax levied against the city's motels and restaurants. The money is earmarked for retirement of the debt on the bonds used to build Cape Girardeau's Show Me Center and for tourism and economic development.

A 10-cent property tax increase also was levied to help pay the Show Me Center debt.

Fischer said one proposal for the use of excess tourism funds is to reduce the property tax or pay off the bond indebtedness early.

"I personally feel that if they would invest the present excess funds and additional funds that will be generated in the future in a good project or a number of projects, they could bring back many-fold what a reduction in property tax would bring into the economy," he said.

Other projects that will proceed this year include:

A $1 million Cape Girardeau Municipal Airport terminal building renovation project.

Rehabilitation of low-income homes and rental units and sewer repairs in a section of south Cape Girardeau through a state grant program.

Celebration of the 200th anniversary of the city's founding as a trading post in 1792.

Several street and sewer projects that will be constructed by private developers.

Continued right-of-way acquisition and planning for a new Mississippi River bridge in Cape Girardeau and five-lane bridge route to connect with I-55.

The proposed project could be completed in six years, and will include bridge route interchanges at Lorimier, Sprigg, West End Boulevard, Kingshighway, Silver Springs Road and Interstate 55.

Fischer said Tuesday he doesn't expect a dip in sales tax revenue in 1992, but he does think revenue will not increase much, if at all.

"This year it leveled off, but we still had over $25 million in commercial construction going on in the city," he said. "In '92, I believe the sales tax will probably stay pretty even."

The city manager said the lack of additional tax revenue will force the city to closely examine any new programs or services to assure they're self-sufficient.

"User fees have to be looked at very closely," he said. "But I don't see any reason to reduce city services.

"The area probably affected the most will be the five-year capital improvements projects, where I'm sure some of the things will have to be delayed.

"Also, if there's some unforeseen major repairs that could come up, then that could cause some problems."

Fischer said the city will continue to "tighten its belt" and operate within anticipated income.

"I think people in an area have to look at their income and position with a conservative attitude," he said. "But I don't think quality of life in 1992 is going to be affected negatively at all."