Cape county nears court date with Jackson

Communication has stopped and time is running out for county and Jackson city officials to settle a tax revenue dispute before it goes to court.

A bench trial is set for a week from today. No action has been taken by the Cape Girardeau County Commission regarding a Jackson counteroffer received May 27. A June 18 deadline set by the city for a response to its counteroffer has passed.

The potential court battle would be over whether the county should reimburse the city with 25 percent of the road and bridge property tax it collects from Jackson. The county doesn't spend any of its road and bridge revenue on streets within the city limits. A state statute says that counties are supposed to reimburse the cities the 25 percent on special taxes. The statute only applies to first-class counties, and the county's position is that it only applies to taxes that require voter approval.

A ruling in Jackson's favor would result in more than $80,000 per year toward Jackson road maintenance. A ruling in the county's favor has the potential to have enormous consequences across the state because most first-class counties pay the 25 percent reimbursement.

Cape Girardeau County has been a first-class county since 1997, meaning a settlement including back payments could cost the county $500,000.

At a meeting May 20, the commission offered to begin paying the 25 percent beginning with the taxes billed in 2004 if the city would forgive any back payments. The offer also stipulated that the city would designate the roads, streets and bridges to be repaired and that the commission may make and supervise the improvements.

City officials declined to divulge the details of the counteroffer, citing a provision of the open meetings law that allows public bodies to seal documents dealing with litigation.

"We were offering a compromise to what would be the ultimate amount we would seek in court," Mayor Paul Sander said.

Although no official action was taken in the commission's minutes, Sander said the commission did communicate to the city that they would not accept the offer.

"We're still open to any offer the county would make," Sander said. "We've made ours."

Commissioners Joe Gambill and Larry Bock would not comment on the matter other than to say they've taken no action. Presiding Commissioner Gerald Jones has been out of town for more than a week and could not be reached for comment.

This dispute has been going on since late 2002. An attorney general's opinion received in 2003 favored the city of Jackson.

bmiller@semissourian.com

243-6635