CITY PRUDENT TO ENSURE USER FEES REFLECT COSTS

No one likes the idea of paying more for services. But with decreasing tax revenues, the city of Cape Girardeau has little choice.

In preparing the new budget, the city staff has recommended that user fees provide their fair share. This is especially true in the parks and recreation programs, which have been largely subsidized in the past.

If revenues are to be raised, it only makes sense that user charges top the list. It seems more equitable for users to pay for services than to split the costs among all taxpayers.

The city's Parks and Recreation Advisory Board took a hard look at recreation funding last week, and recommended a number of fee increases that should allow most city recreation programs to operate in the black. In all, about 85 programs and activities will be affected.

Board members stressed the need to balance additional revenues with the value of the service. It's a sensible approach. If fees become too high, it would naturally discourage participation.

As part of the budget process, many golfers and swimmers were made aware of the fee proposals, and many endorsed the recommendations. Their input should make the new fees more palatable. Park officials also compared the proposed recreation fees with similar programs in other cities. It seems many people have gone out of their way to help make the best of a bad situation.

If adopted by the City Council in June, the park board recommendations should generate about $92,500 in additional revenues. That includes $28,000 at the Jaycee Municipal Golf Course. This would allow the golf course to operate in the black next year, with no city subsidy. This additional revenue would help offset the current city subsidy of nearly $1 million in parks and recreation. About $608,500 of that is earmarked for park maintenance.

Simple economics will force the city staff and council to face facts: Cape Girardeau has not had a tax increase since 1962. But the luxury of funding programs and services solely with tax revenue generated from growth is no longer an option for the next fiscal year. Since the 1988-89 fiscal year, the annual increase in sales tax revenue has dropped from nearly 7.4 percent to less than 1 percent growth this year. A drop in the hotel and restaurant tax receipts also worsened the budget picture.

With the current public mood, it's doubtful any tax proposal would be embraced. That's why the city should try to generate additional revenue wherever possible. With the gloomy budget outlook, it only makes sense that user fees more fairly reflect the true costs of services.