Slow economy catching up to county's budget

Cape Girardeau County may have $265,000 less in its general revenue fund by this time next year, depending on the 2004 economy.

County officials say the financial situation for next year is a cause for concern, but not a cause for panic as the county will not have to dip into its reserves and will go ahead and give its employees a 3.5 percent raise.

Cape Girardeau County auditor David Ludwig unveiled his first preliminary budget Thursday at a public hearing during the county commission meeting. What he found in his first year after replacing longtime auditor Weldon Macke is that the sluggish economy is finally catching up with the county. The county has enjoyed financial success to the tune of a $5 million reserve in the boom years of the late 1990s. The county stashed away as much as $1 million in one year because of soaring sales tax revenue increases.

Next year, however, the county figures to spend more than it takes in.

"This has been creeping up on us the last several years," said Commissioner Larry Bock. "Expenses are just rising too fast for the income."

The preliminary budget -- the county commission won't pass the final budget until Dec. 29 -- predicts the county will have $10,869,194 (a $650,000 end-of-year balance included) in available revenue and $10,483,486 in expenses. So, by the end of 2004, Ludwig estimates the county will have $385,000 in the bank.

The figures are based on a 3 percent growth in sales tax for next year and a hefty increase in expenses, including a 3.5 percent raise for county employees that adds up to $225,000 plus retirement benefits.

Sales tax revenue increased about 2.8 percent, or $149,000 in 2003. Meanwhile, county expenses are figured to increase by $300,000 next year, or a 3 percent increase.

Ludwig said the $300,000 increase was "just operations and maintenance to buildings. We've got a roof repair that will cost $44,000 and other expenses like that that go above and beyond the normal expense."

The county also expects a 9 percent increase in utility costs.

"It's a conservative budget," Ludwig said. "We have many challenges ahead of us in the upcoming new year. We'll try to keep up the quality of service for the citizens."

The county's general revenue fund is generated from sales taxes and fees. Plus the state government provides matching grants for various programs and departments, money that could be taken away during tight times.

Ludwig said estimating revenue is difficult.

"There are just so many variables that enter into it, to try to come up with an estimate, it's a real difficult process," he said.

The county's road and bridge fund is generated mostly through real estate and personal property taxes. The county will maintain its roads and bridges with an estimated $2.4 million in 2004, with a balance of $91,000 at the end of 2004.

Bock, the commissioner in charge of roads, said the road and bridge budget is in better shape than the general revenue.

Bock said property tax revenue is increasing with more building around the county, but the road and bridge budget has benefited from fuel taxes and license fees that have been increasing at a good rate the last several years.

bmiller@semissourian.com

243-6635