Legislature should address internet sales tax issue

Cape Girardeau's strategic plan divides our city council's goals into five categories: Economic development, safety and health, fiscal stewardship, improving neighborhoods and streamlining business and citizen processes. Each goal has several strategies/initiatives to help fulfill the objectives. Our city manager and staff work on a constant basis to make each of these goals a reality. At various council meetings throughout the year we dedicate time in study sessions to hear reports from our staff on what is being done in each category to achieve each goal.

For the current fiscal year and for all of 2019, there are a few important issues we as a council feel are of utmost importance to the citizens of our city.

• The first of these, under fiscal stewardship, is addressing our continuing problem of flat sales tax growth. Sales tax is the biggest part of our general revenue to fund everything we as a city have to accomplish. We have failed twice in the past to pass a use tax to address this issue. As internet sales continue to grow, people don't spend money locally as they once did, and your city revenue remains flat as services and expenses continue to rise.

At some point, we as leaders will be faced with the difficult decision of cutting certain city services unless we change this scenario.

We elected not to put a use tax back on the ballot this April because of a recent U.S. Supreme Court decision in South Dakota. This Wayfair Decision basically said all sales should be subject to sales tax at the point of sale. But there are other stipulations we feel the Missouri Legislature needs to deal with to address this issue on a statewide basis. State legislation could correct the issue of online sales for all citizens of Missouri and we might not have to pass a local use tax. We'll see what happens.

• The second major issue we feel is important for our entire city falls under two goals, improving neighborhoods and safety and health. This is the continuation of the Purpose Built Community-inspired project. It has evolved into the PORCH Initiative which will revitalize the South part of our city with better education for our youth, better housing and more home ownership, a reduction in crime and a vast reduction in generational poverty. Cape Girardeau Public Schools are leading the way with their conversion of Jefferson Elementary to a STREAM school and the initial results are outstanding. There are plans for an early learning center and expanding and renovating Jefferson to accommodate the changing plans for how our youth are taught.

The proposed aquatic center is a big part of these plans also. But it is more than just better education. Housing has to improve, and there are plans in the works to address this issue also. Business development will occur, serious crime will diminish, and eventually we will see generational poverty go away. It is a long-range plan but has worked in several areas of our country, so we are following this path of success for the betterment of our community as a whole.

• The next item of importance for 2019 is the renewal of the Capital Improvements Tax. It is a 1/4-cent sales tax originally passed in 2008 for capital expenditures for our water system and other capital items. We have to not only continue capital investment in our water system but also need extra funds over and above what Transportation Trust Fund (TTF) provides to maintain and upgrade our streets and roads. There is also the issue of an outdated city hall and airport to address. Speaking of TTF, we have to begin the process of planning for TTF-6 which needs to be renewed in 2020.

The city has done a remarkable job of spending tax dollars wisely with each version of the Transportation Trust Fund. You, the citizens, have trusted the city to do so with each TTF for the last 20-plus years and we will continue to do so in the future.

As you can see, it will be a busy year for your city council as we deal with these important issues and all the others that will come up throughout the year. We will continue to follow our crime reduction plan and confront nuisance issues on a regular basis. This year will also mark the beginning of many of the Parks, Recreation and Stormwater II (sales tax) projects, which are possible because of the overwhelming voter support last year.

We are very lucky to have a council that is dedicated to do what is best for the people of Cape Girardeau. If there are ever any questions about these or other city projects and goals, please do not hesitate to contact me or your specific council representative.

Bob Fox is the mayor of the City of Cape Girardeau.