County: Current Fruitland plan doesn't have enough cash reserves

Editor's note: This is the final installment in a series of stories about each of the three "points of contention" outlined by Cape Girardeau County in response to Fruitland's bid to incorporate as a village.

The Cape Girardeau County Commission said the financial plan for the proposed Fruitland village doesn't add up and has asked for revised numbers before it is willing to approve incorporation.

A petition for incorporation submitted in August signed by 79 percent of the 302 taxable inhabitants living within the potential village borders included a rough draft of a budget. State statutes governing incorporation of villages do not specify that providing a financial plan is necessary; however, any supporting documentation may be included to help the county determine the soundness of the endeavor.

The county is charged with making sure petitioners follow technical requirements, basically that two-thirds of the area's verified taxable inhabitants have signed the incorporation petition. But there is also a more subjective factor, the "reasonableness" of the petition. On this point, the county can decide how viable the proposition is based on its own research and opinion.

In evaluating Fruitland's request, the county identified three "points of contention" -- the type of land included in the village, the proposed services and the financial plan.

"We believe the financial plan and the revenue projected is inadequate to serve the residents of the area," said the Feb. 23 response letter signed by Presiding Commissioner Clint Tracy and Associate Commissioner Paul Koeper.

The letter specified that the projection of $10,000 in reserves would not be enough to address "any possible unforeseen expenses that might arise" and said the plan did not include road-related expenditures.

The original financial plan estimates roughly $75,000 in revenue and $66,000 in expenses. The revenue is projected from a possible half-cent sales tax, County Aid Road Trust funds, state motor vehicle/fuel tax revenue, and business license and inspection fees. There are 40 businesses listed as part of the incorporated area, along with two churches and one private high school.

The expenses list liability insurance, administration fees, attorney and accounting fees, contractors such as a city clerk and police services and a $10,000 reserve.

To try to understand what an adequate financial plan might be, petitioners and the county have said they would review the budgets of comparable municipalities.

Oak Ridge is a nearby village that has, according to the 2010 census, 243 inhabitants. Its total income in the fiscal year ending June 2011 from general, street, cemetery and sewer funds was $71,598.17. Expenditures out of those funds totaled $71,044.30 with a remaining balance of $160,401.97, according to a budget document provided by the county clerk's office.

In contrast to Fruitland, Oak Ridge was incorporated in 1869 and has built up cash reserves and infrastructure over the last 143 years, such as the development of a sewer fund that makes up about three-quarters of the village income and expenses.

Fruitland petitioners have been putting together a response to the county that addresses the points made in the commission's letter. Tim Sutterer, who presented the original petition to the county, said Friday their answer is approaching its final draft.

"We will present a sample draft budget that would demonstrate that the income and expenses balance out to show this is a reasonable proposition," Sutterer said.

Until the village is formalized and can vote on the details of services and infrastructure, including possible taxes, he said, only a rough draft that is a "reasonable and educated guess" can be provided.

Tracy said Friday that while the budgets of other areas will be taken into consideration, they are not strictly comparable and there is likely "more than one way" for Fruitland to create a viable plan. He said the need for more complete financial information as part of the incorporation petition is to benefit and educate potential village inhabitants as well as to guide the county in making a decision.

"You want it to be feasible and to work," Tracy said.

Tracy said the commission will be relying on potential residents to communicate with them about whether they want to belong to the village and feel comfortable with the petitioner's plans.

"There will definitely have to be some public input in the process," Tracy said.

salderman@semissourian.com

388-3648

Pertinent address:

Fruitland, MO

Oak Ridge, MO