ROBUST RETAILING BUILDS CITY REVENUES

After a slight dip in 1991, sales tax revenue in Cape Girardeau has jumped 13 percent in the past two years, indicating a robust and growing retail sales base in the city.

That's good news for economic development advocates like John Mehner, president of the Cape Girardeau Chamber of Commerce.

"Cape Girardeau is a regional economic center," Mehner said. "I think in terms of retail dollars there has been really positive growth and development in the west end of town, with the new Wal-Mart Supercenter and Lowes Store that's set to open March 3."

But Mehner said there also has been significant growth in the number of small retail establishments and restaurants in Cape Girardeau.

He said it's not uncommon in small cities that large new retail stores will push smaller stores out of business. In Cape Girardeau, though, the entire pie seems to be growing, Mehner said.

"Right now we've been fortunate," he said. "As some of these new, large retail centers have opened, we haven't seen a corresponding increase in smaller retail stores closing."

John Richbourg, Cape Girardeau's finance director, said that in 1993, 183 new retail businesses opened in the city, while 167 closed.

"Obviously, we're losing some retail businesses, but it's encouraging to see a net gain for the year," said Mehner. "I think that's attributable to the fact that we're a regional draw.

"It's not just 35,000 people living in the city limits that are shopping in Cape. At any time on a given day, there are between 90,000 and 100,000 people in Cape Girardeau."

City Manager J. Ronald Fischer said that means the city can continue to rely on its sales-tax base to provide police and fire protection, improve streets and sewers and complete other capital improvements.

"We have to provide police, fire, repairs to the streets and all the other city services, so when those people come into town, they pay part of that bill," he said.

The city manager said 30-40 percent of the sales tax revenue is generated from people coming into the city. And as that sales-tax base grows, the city's residents bear less of the burden for paying for services.

Assistant City Manager Doug Leslie said the long-term growth of sales tax receipts is a good barometer of the local economy.

Sales tax receipts in 1993 totalled nearly $5.4 million, an increase of more than $300,000 over the 1992 figure.

Sales tax revenue was about $4.7 million in 1991, which was down from $4.8 million in 1990. Five years ago, in 1989, sales tax revenue was about $4.6 million.

"In the last year and a half, we've been very encouraged by the growth of the sales tax," said Leslie. "Taken over a period of time, it indicates that our economy is growing and healthy."

In the current fiscal year, which began July 1, sales tax revenue is up nearly 9 percent, he said.

"That's somewhat ahead of our budget projections," Leslie added, "which certainly helps out when other revenues are stagnant."

Leslie said the sales tax finances about half of all general fund expenditures. He explained that other funding sources for the city's general fund, such as property taxes, typically are static and don't adjust with inflation.

"We've been very pleased in the increase in sales tax revenue over the past few years," Leslie said. "We feel it has exceeded inflation, and that's encouraging. It indicates a healthy economy."