Assessing Cape Girardeau's financial situation

A year ago, Cape Girardeau city employees were putting together facts and figures in an effort to assess spending needs and anticipated revenue. Their efforts resulted in a recommendation for a long list of capital improvements and increased pay that would have required a tax increase, considering the economy at the time was still stagnant.

A citizens task force considered -- twice -- the recommendations made by the city employees. The upshot was an April vote on a sales-tax increase, storm-water fees and a property-tax extension. The proposed revenue increases were accompanied by a list of projects. City voters rejected the plan.

Since then, very little has been heard from City Hall about finances. But the needs of a year ago have not gone away. One bright note has been an uptick in the national and local economy. Local sales-tax receipts have started to reflect increased consumer spending. And indications so far during the holiday retail season give cause for more sales-tax cheer.

But, say city officials, even a strong rebound in the economy won't be enough to meet all of the city's needs.

A good deal of attention is being focused on the police and fire departments, both of which provide essential services.

The police department's staffing is down 20 percent from the authorized 74 positions. Low pay is cited as the main reason for several vacancies as officers leave for better-paying jobs elsewhere. Last week, an officer left the department to take a job in the St. Louis area with a pay increase of more than 50 percent.

In the fire department, the chief's position has been vacant for months, due at least in part to the financial situation. But other pressing needs include equipment and facilities.

For the most part, Cape Girardeau residents aren't experiencing drastic reductions in city services, and officials from the mayor on down concede that any effort to raise taxes would likely fail unless voters feel the pinch.

Mayor Jay Knudtson hopes efforts to raise money through private donations -- the parks and recreation department has had some success in this regard -- will provide some extra funding for some of the city's needs. But that won't provide overall pay increases or enable the police department to offer competitive salaries.

It's too early to tell how much impact the economic turnaround will have on city revenue. Cape Girardeau is heavily dependent on sales-tax revenue, That has long been a stable source of funding because of the city's prominence as a regional shopping center.

If the city starts looking at other options -- whether it's tax increases or elimination of services or both -- it should keep in mind the objections raised to the April tax-and-spend plan.

The main concerns voiced by voters then was the inclusion of spending priorities that weren't considered essential -- a proposed water-recreation park in particular. And taxpayers also were concerned about authorizing tax increases for specific purposes that would continue to be collected even after those projects were completed. Mayor Knudtson has acknowledge the need for sunset provisions in any future tax plans.

City officials are to be commended for maintaining a high level of municipal services during some tough economic times. Now the even tougher task is to determine what's needed for the future and where the revenue to pay for it will come from. Voters in Cape Girardeau are going to be tough sell, as shown by April's vote. So any plan will have to be well-thought-out and contain plenty of common sense.