sALES TAX GROWTH IN CITY, COUNTY IS REASSURING

The flood took a devastating toll on the entire upper Mississippi Valley region. But for all the losses, recent Cape Girardeau County and city sales tax revenues registered solid increases.

The news is reassuring. The region has suffered so much from the flooding that reduced tax revenues would have been just another blow to our city and county, which are already dealing with increased costs due to flood cleanup. In the city of Cape Girardeau alone, flood expenses topped $300,000.

These tax revenues have not only weathered the flooding, but are actually registering sound growth. County sales tax increases are the best in several years and city collections are at nearly record levels.

The county sales tax check for October was up 4 percent over last year at this time. The check represents August collections that are paid to the state in September. That would have been the time that the county was hard hit by flooding.

This month's check was $280,138 compared with $278,197 last year and $257,872 in October of 1991. County revenues from the half-cent sales tax so far this year total more than $2.89 million, compared to $2.69 million last year at this time.

Other counties in the area are also showing growth this year over 1992. In Perry County, the October check was down about 9 percent over the same month a year earlier, but for the year growth is running about 3 percent ahead, with receipts running over $14,000 ahead. In Scott County, receipts for the year are $60,000 over 1992, reflecting a growth rate of 7 percent. In Butler County, annual receipts are about $50,000 ahead of last year, providing a growth rate of around 6 percent.

Tax receipts since July in the city of Cape Girardeau have surged 7.3 percent over the same period last year. Rates were even higher earlier this year -- at 9.3 percent. But September receipts registered 3.4 percent, which is far from shoddy.

City officials are encouraged by the fact that revenues have continued a steady climb since a local recession in 1991. That year, sales tax revenues fell nearly 1 percent from 1990 totals, the first time sales tax revenue had actually declined. But sales and receipts rebounded in 1992, with the year ending 6.1 percent higher. Total receipts in 1992 were $5.06 million.

This year, city sales tax revenues are already at $4.5 million. If October through December registered at even normal income levels, the year's total receipts should represent a significant increase.

And that means the city can continue to rely on its sales-tax base to provide police and fire protection, improve streets and sewers and complete other capital improvements, said City Manager J. Ronald Fischer. It's also strong sales tax revenues that have enabled the county to offer a zero property tax rate, while remaining fiscally sound. Healthy sales tax collections also allow the city and county to better keep up with inflation. It's much harder and more time consuming to increase property taxes.

These increases in sales tax are due to many factors. Increasing confidence in the economy, continued commercial growth in the county, and the fact Cape Girardeau continues to grow as a retail, medical and education hub. And this means that many out-of-town people are helping to pay for basic services. As the sales tax base grows, the city and county residents bear less of the burden for paying for services. In an atmosphere where most governmental entities are holding out their hand, it's a nice change of pace.

Both the city and county also keep sales tax collections in perspective. They realize that what goes up can also come down. They are wise not to rely too heavily on sales tax growth and save money aside for any rainy days or falling sales. But for now we can celebrate the upswing in collection.