Businessman challenges Cape's 'tax math' in flier

Businessman Jim Drury lashed out at Cape Girardeau city government "tax math" on Friday, charging that four tax and fee issues on Tuesday's ballot would cost households close to $300 more a year rather than the $83.51 figure city officials have calculated.

City officials said Drury's math is flat wrong. Mayor Jay Knudtson said Drury's calculations don't take into account that much of the funding would come from a quarter-cent sales tax that would be paid by all who shop in Cape Girardeau, not just city residents.

Knudtson said an estimated 300,000 people in the region regularly buy goods and services in Cape Girardeau.

"That right away shoots a hole in his math," Knudtson said.

Drury mailed out a bright pink flier this week to all of Cape Girardeau's 14,000 households in which he offers up his own calculations on the cost of the proposed taxes -- a quarter-cent sales tax, a local use tax, a storm-water fee and replacement of a 10-cent property tax.

City officials say the measures would generate $4.1 million a year in added revenue for operating expenses, equipment replacement, storm-drainage projects, a new fire station, expansion of the police station and construction of a water park.

Drury, who said he opposes the ballot issues, concluded that their passage would cost each Cape Girardeau city resident $113.89. The city says an average household in Cape Girardeau has 2.24 people. Based on that rate, Drury's calculation would put the cost of the taxes and fees at just over $255 per household.

Drury said his calculations are based on the city's projected revenue from the tax and fee measures and a population of 36,000.

City officials and other supporters of the measures say Drury's figures don't take into account the portion of the storm-water fees that would be paid by businesses. A typical convenience store owner would pay $17.10 a month compared to a maximum of $5.25 a month for homeowners with houses larger than 2,250 square feet.

The city estimates the storm-water fees would generate $747,295 annually.

The sales tax would generate the bulk of the funding package, an estimated $1.9 million a year. The sales tax revenue would fund the fire department and replace 58 percent of the general fund revenue currently supporting the department.

Additionally, the local use tax is expected to contribute $990,808 annually and the replacement of a 10-cent property tax would generate $442,342 a year. The existing property tax, which is being used to help pay off Show Me Center bonds, will expire in 2004 unless voters approve the replacement tax.

Retired businessman Harry Rediger, who chairs the city's Planning and Zoning Commission and serves on a citizens task force pushing for passage of the tax measures, defended the city's calculations.

"The city is not trying to pull the wool over everybody's eyes," he said. "They have been as forthcoming with numbers and data as they can."

But Drury said he can't support tax and fee measures that would be levied permanently.

"Why an open checkbook and never-ending tax?" Drury said.

He said there's no guarantee how the tax money would be spent once the listed projects have been completed.

City officials agree there is no blueprint for how all the money would be spent beyond the next five years, but they anticipate the revenue will be needed for ongoing operating expenses.

However, as long as the storm-water fees are in existence they must be used for drainage projects and programs. City officials say they expect to address a number of drainage projects beyond the 14 priority projects listed.

River Campus raised

In his flier, Drury questions why the city should "saddle" residents with an added tax burden when the city plans to spend "at least $15 million" to help fund Southeast Missouri State University's River Campus arts school.

Drury said the $15 million includes the city's $8.9 million commitment and the cost of retiring bonds that would be issued under a financing plan and retired with motel and restaurant tax revenue.

Nearly half of the questions on the flier relate to the River Campus, long an issue of contention with Drury. The restaurant and motel owner has filed three lawsuits to block city funding for the projects.

Knudtson said the River Campus has proved controversial over the past four years, but shouldn't be confused with Tuesday's ballot issues.

"Will it have an impact on how citizens vote on Tuesday? I don't know," he said.

The mayor said voters in 1998 approved the use of motel and restaurant tax dollars to help fund the River Campus project, and there's no need for another election.

Drury questions why the city doesn't use its motel and restaurant tax money to construct the proposed water park and pay for other projects.

Knudtson said the city legally could use motel and restaurant tax money for a water park, but has chosen to include the project in the items that would be funded with the proposed tax package. Other projects on the list can't be funded with motel and restaurant tax money, the mayor said.

Contrary to one of Drury's contentions in his flier, Knudtson said the city hasn't committed all of the motel and restaurant tax money to the River Campus project. He said the tourism tax money currently goes to fund the Convention and Visitors Bureau and retire bonds for the Show Me Center, Osage Community Centre and the Shawnee Park Sports Complex.

If voters approve the new taxes and storm-water fees, Knudtson said the city council will consider within the next three to five years if any of the measures could be eliminated or reduced.

mbliss@semissourian.com

335-6611, extension 123