UNLESS REVENUES INCREASE, SCOTT CITY FACES TOUGH YEAR

SCOTT CITY -- During his annual "State of the City" address at Monday's regular city council meeting, Scott City Mayor Larry Forhan described the past year as a tough one.

And, unless city revenue is boosted somehow, the outlook isn't expected to change in the near future.

It is for that reason that the council -- for the first time since a similar proposition failed in April 1991 -- will consider a quarter-cent sales tax initiative for street repairs, which could appear on the city ballot as soon as August.

"(A sales tax increase) has to be a last resort," said Ward 4 Councilman Norman Brant. "But that looks like about where we are now."

The council will begin talking about a proposed increase at its next regular meeting, Feb. 22.

Scott City has an annual general revenue budget of about $750,000 and a total budget of about $1.2 million with debt retirement figured in.

During last fall's campaign, Casino Magic -- one company which has expressed interest in establishing a gaming facility at or near the port authority -- projected the boat would generate $2 million in additional revenue for Scott County from direct taxes.

If Scott City approves gambling at the April 5 election and it does receive a boat, that money would go to the city.

But the city cannot bank on funding from a boat any time in the near future. That is why the council is looking at the sales tax increase.

In 1991, the council asked voters to approve a half-cent sales tax increase, which was defeated 316-284, with a mere 22 percent voter turnout.

The measure would have brought the city's sales tax rate to 6.225 percent and would have generated about $100,000 per year, which would have paid for contract labor and materials to fix city streets.

"When the increase was defeated in 1991, people didn't understand how necessary it was," said Ward 2 Councilwoman Ladonna Phelps. "If we do this again, we have to educate the voters, telling them that the money will go strictly for street repairs all over the city."

The council also hopes to ride the success of the November 1992 sales tax hike for the purchase of a new fire truck and auxiliary equipment. In one of the heaviest turnouts in recent city history, the vote was 1,091 to 868 in favor of the tax. The truck the city replaced was nearly 25 years old.

The tax amounts to a nickel on a $20 purchase and will remain in effect for another four years.

The quarter-cent tax the council will discuss would be added to the truck tax.

"The fire truck, which was delivered this fall, is a tribute to the people of Scott City," said Forhan. "It is something we worked together to afford and purchase, and now is being used to benefit the entire city."

If the council decides not to go ahead with a sales tax increase initiative, it will have to look at trimming other areas of the city budget.

"Unless we see a real big increase in sales tax revenues in the coming months, it looks to be another tight fiscal year," said Forhan. "We are at our wit's end as far as funding street repairs go.

"We have been filling holes and patching streets which are long overdue for resurfacing," he continued. "Something has to be done."