SCOTT CITY EYES TAX FOR FIRE TRUCK

SCOTT CITY -- The Scott City Council is considering putting a quarter-cent sales tax increase before voters. The revenue would pay for a new fire truck.

At Monday's council meeting, members agreed to study the sales tax at one more meeting before putting it on the November ballot.

The council last month considered adding a $1 charge to residents' water bills to pay for the truck. But City Attorney Frank Siebert said Monday that adding the $1 charge to the water bills without voter approval violates the Hancock Amendment, which prohibits any levying of a license, tax or fee without a vote.

He also said that using that method of financing, it would take eight to 10 years to raise enough money to pay for the truck. The water bill method would raise about $21,000 per year, Siebert said.

After debate on the amount of the sale tax, council members expressed support for a five-year, quarter-cent increase to pay for the truck.

A bond issue was also considered to go along with the sales tax, but was struck down.

Mayor Larry Forhan said the ballot could be strictly worded so that the funds generated from the tax increase could be used only for purchase of the fire truck and equipment for the truck such as hoses and axes.

The mayor said it is important that voters realize the tax increase would not be used for other expenses or for other city departments.

Council member Terry Johnston agreed.

"If people think the money will be used for other things, they won't vote for it," he said.

A sales tax increase would require a simple majority for passage.

The tax would generate about $55,000 per year, according to Siebert. Once money starts coming in from the tax, the city could buy the truck on a lease-purchase plan, he said.

A half-cent increase which would have generated about $111,000 per year was considered. But council members were against a half-cent increase, saying voters would be more apt to vote for a smaller tax.

Fire Chief Les Crump estimated the fire truck will cost about $200,000. With the quarter-cent sales tax, the city could pay off the truck in about five years.

The council will have to formally approve the sales tax by the end of August to put the measure on the November ballot. It would have to be approved at the council's Aug. 17 meeting.

In other business, the city will likely join a Cape Girardeau County economic development group that would solicit industry to the area.

Members of the city's finance committee will meet next week to consider approving a $15,000 commitment to the group which represents a $5,000 annual commitment for the next three years.

Part of Scott City's Nash Road industrial park lies in Cape Girardeau County. The Cape Girardeau City Council has already approved a $150,000 commitment to the group.

Most council members said they are in favor of joining the group, saying it could lead to new industry and jobs.

The cities of Cape Girardeau and Jackson, Cape Girardeau County and the Cape Girardeau Chamber of Commerce are also represented.