Four-tax plan for Cape gets first push to public

Cape Girardeau's mayor and city manager trotted out a four-tax plan to the general public on Friday for the first time, explaining the city's financial problems, proposed solutions and average cost per family.

They had a warm reception at First Friday Coffee, a monthly chamber of commerce event. Several of the nearly 100 who attended said they were sold after the 30-minute presentation.

"We have good city leaders, and I have confidence in them," said Trudy Lee, planned-giving director for the Southeast Missouri State University Foundation. "It's important for them to be here even if it is preaching to the choir. They have to make sure of the business community's support."

Many said they were shocked by the conditions revealed in the presentation.

"A lot of people didn't realize 19 people care for all the streets in this city," said Janet Esicar, senior vice president at Capaha Bank. "It's a learning process. We need to support them."

Residents will vote April 8 on the issues.

Mayor Jay Knudtson kicked off the presentation, called "Invest 4 Cape," by saying he and three other people new to city government elected in April -- council members Charlie Herbst, Marcia Ritter and Evelyn Boardman -- knew from the beginning the council immediately would be charged with solving the city's financial troubles.

An accompanying PowerPoint page listed the names of the 12-member Citizens Finance Task Force appointed by the council and lead by co-chairs Melvin Gateley, a former councilman, and Nancy Jernigan, executive director of the Area Wide United Way.

Asking for 27 cents

Knudtson then outlined the needs: increase revenue for operations, more flood protection, building renovation and replacement and ensured future economic development. To fill those needs, he said, it will cost the average Cape Girardeau family less than $100 per year, or 27 cents a day.

He turned the presentation over to city manager Michael Miller, who explained that the city's financial trouble came from poor sales tax revenue, rising personnel costs and increased maintenance costs, including those for outdated and unreliable equipment. Department heads took a number of belt-tightening steps, including buying used police cars, keeping street crew staffing levels just under those in 1956, even though there are 57 more miles of roads, and giving no raises or 1 percent raises to city employees.

The city's priorities, in order:

More money for operations

Equipment replacement

$3.6 million in stormwater management projects

Major construction projects, which are a new $1.8 million fire station, an expanded and remodeled police station for $5 million and a new water park for $6.5 million.

The PowerPoint presentation included photographs of an undersized Fire Station No. 3, a crowded room in the police station and the deteriorated inner workings of Capaha Pool.

Miller then outlined the proposal:

A quarter-cent sales tax that would raise $2 million annually, which would free up money from the fire department's existing budget for other purposes.

A local use tax of the same amount as the city sales tax -- which would be 2.25 percent if the fire sales tax passed -- on out-of-state purchases of $2,000 or more. The state already collects use taxes on such items. The local use tax would raise an estimated $1 million annually.

A stormwater utility charge based on square footage of one floor of a home or business plus the paved area around it. It would range from $1.75 per month to $5.25 per month for homeowners and raise an estimated $747,295 annually.

A 10-cent property tax that would replace the 10-cent tax that will expire on the Show Me Center bonds in 2004. It would raise an estimated $442,343 yearly.

Miller explained that, if all the items didn't pass, the city would go down the list of priorities in order and do them as money allowed.

The Citizens Finance Task Force left sheets on each table at First Friday Coffee for people to volunteer to promote the issue or ask questions. They urged calls to Gateley at 334-1303 or Jernigan at 334-9634.

Knudtson and Miller plan to give the presentation to at least 36 other groups throughout the city. Chamber executive director John Mehner said he was pleased chamber members saw the official presentation first. However, the chamber board hasn't decided whether it will endorse the tax proposals.

hhall@semissourian.com

335-6611, extension 121