Too often government reacts to emergencies as opposed to preventing them. Carefree spending and lack of planning have spelled disaster at the federal level.
But fiscal common sense seems to be working closer to home. The Cape Girardeau city staff and council have towed the line in the 1992-93 budget. As a result, taxpayers will get more bang for their buck in this $26 million budget document.
Through a number of personnel changes and a reduced capital improvements plan, the Cape Girardeau's proposed budget will shrink by 3 percent next year. The council will give first reading of the document Monday, with final approval expected in two weeks.
Declining revenues forced city staff to evaluate all programs. The city was able to reduce spending, and yet not cut any programs or services for the coming year. That reflects a more efficient operation.
State and federal payrolls have bloated over the last decade, but not the city of Cape Girardeau. This budget document reflects about seven and a half fewer personnel than was on the payroll five years ago. Staff reorganization alone is expected to reduce costs by $200,000 in the coming year.
The budget includes essentially no increases in overall salaries and benefits, and funding reductions in nearly every major budget category. The capital improvements budget was cut by $10 million over the next five years.
User fees will also carry a growing emphasis. It makes sense to make those who use the services pay their fair share. This approach has allowed the city to avoid seeking more drastic revenue producing measures.
Despite lackluster revenue growth, the budget reflects a city in good fiscal health. But while spending restraints are necessary, fiscal prudence can't be ignored. The budget proposal includes $169,000 in excess general fund income to help establish a healthier cash reserve. Cash reserves have fallen from just over $1 million in 1989-90 to about $400,000 this year. Maintaining a cushion for emergencies seems wise.
The city has been able to hold increases in fees, utility rates and other operating costs well within the rate of inflation. But not all costs are under local control, such as complying with state and federal mandates. Unforeseen costs have forced the city to shift balances between funds. As such, some capital improvements and maintenance have suffered. This will have to be addressed in future budgets. Waiting too long for repairs and basic upkeep will ultimately drive up the price.
These cost-cutting measures are aimed at preventing a fiscal crisis rather than having to simply react to a later emergency. The proposed budget also reflects a more efficient use of tax dollars in that spending was reduced without losing programs or services. These are developments that all Cape Girardeau taxpayers can feel good about.
Connect with the Southeast Missourian Newsroom:
For corrections to this story or other insights for the editor, click here. To submit a letter to the editor, click here. To learn about the Southeast Missourian’s AI Policy, click here.