Task force to recommend tax increases

Melvin Gateley and Nancy Jernigan, leaders of the Citizens Finance Task Force, will hand over a three-quarters-inch-thick report to the city council tonight, a report that could have a major impact on the direction of the city of Cape Girardeau.

The task force, a 13-member board appointed by the city council to look into the city's deteriorating financial state, will present its findings and recommendations at a joint meeting at 5:30 p.m. at City Hall.

Among the recommendations: a one-quarter-cent sales tax, an increase in cigarette taxes, extending 5 cents of a 10-cent property tax for the Show Me Center, an increase in stormwater fees and the creation of a use tax. The combination could raise about $3.7 million annually.

Jernigan said the recommendations will not amount to as high of a tax increase -- a three-quarters-cent sales tax hike -- as was proposed by a separate team which consisted of city employees.

"It's a combination of that and some other things, and we phased it into critical needs that must be funded now and others that can wait a few years," she said.

Jernigan said each of the five issues would require separate votes.

"It would have to pass as a bundle," she said. "If one doesn't pass, they'll have to pick and choose between the projects which we feel are all critical."

Brita Church, a member of the task force, said the group took its responsibility seriously.

"We put a lot of effort, a lot of thought and consideration to the proposal and needs for the city and how to fulfill those needs," she said. "We tried to come up with what we thought would be the best thing for the entire community."

'They convinced us'

The task force, a diverse group of residents from different areas of the city, has met on several occasions since it was appointed in early July.

Its mission was to decide whether the city was being run efficiently and determine if the city does indeed need to raise taxes as was suggested by the city revenue team.

"We didn't have time to go into each department and see firsthand all the budgets in the different departments," Jernigan said. "But all the questions we asked like, 'Have you thought of this, have you thought of that,' they said yes, and they convinced us that everything is being done on the expense side to make things efficient as possible."

The city employee revenue team's recommendation -- the three-quarter-cent sales tax increase --would add $6 million to the annual budget. The city has struggled financially for the past three years, dipping into reserves to make ends meet because revenue has come in lower than expected. As a result, the city has not been able to keep up with depreciation on its equipment and facilities those years.

'Some critical areas'

The fact that voters vehemently opposed statewide tax issues that were placed on the ballot last Tuesday raised some doubts that any tax will be passed anytime soon. Council members have said it is unlikely that the city would put a tax issue on the November ballot. It would have to meet an Aug. 27 deadline to do so.

"My concern, based on the things I hear from the community is, I don't know if the people are willing for any kind of tax increase," councilman Matt Hopkins said. "The task force really weeded through the information and focused on some things that are critical needs for the city. We'll have to see if the voters perceive that. But I don't want to put something on the ballot that's destined to fail. I want to see if the community is willing to support it."

Gateley said the task force discussed a number of factors.

"We looked at the overall economy and everything," he said. "This city is conservative, but generous when they see there is a need. We saw some critical areas."

bmiller@semissourian.com

335-6611, extension 127