Cape Girardeau County government remains financially sound, with $5 million in reserve for any emergencies, Presiding Commissioner Clint Tracy said Thursday.

"We are solid," Tracy said after the county commission approved a nearly $17 million budget for county operations in 2016. "We have more than a balanced budget."

The commission approved the preliminary budget plan after a brief public hearing.

County Auditor Pete Frazier presented the budget plan and was the only speaker at the hearing.

The final budget is expected to be approved by the commission in January. It includes a 1.5 percent cost-of-living increase for county government employees and officeholders.

County employees also will receive a $500 raise on top of the cost-of-living increase.

Tracy said the raises are designed to help retain employees by keeping salaries competitive with other employers. The county government employs about 200 people.

"You are either competitive, or you will be without employees. We are trying to take care of our folks," Tracy said. "We keep them busy, and they do a great job."

The $16.89 million budget for the fiscal year, which starts Jan. 1, includes $12.47 million for general county operations, $3.25 million for roads and bridges and $1.6 million for assessment services.

The general budget is expected to benefit from an estimated 2 percent increase in the county's half-cent sales tax, Frazier said.

"I feel confident we can make that estimate at this time," he told the commission.

The sales tax is projected to bring in $7.37 million for general operations next year. Another $4.42 million in revenue would come from grants, fees and government reimbursements.

The budget estimates the county will have a $1.3 million ending balance for general operations at the end of the 2016 fiscal year.

The road and bridge fund is expected to end the fiscal year with a balance of $340,000. The assessment fund essentially would break even, with an ending balance of about $6,400.

Those balances don't include the $5 million reserve fund.

Frazier said the budget plan lists expenses at a slightly higher level than what likely will occur. County spending typically totals 7 percent to 9 percent less than what is budgeted in any given year, he said.

Tracy said the county commission has pushed officeholders to keep costs down. Steps have been taken to keep costs in check, he said.

Three years ago, the county commission implemented a self-insured health plan. The result has been no increases in premiums, Tracy said.

"That in itself has been a huge cost savings for us. We are trying to be frugal and cut costs where we can, but not at the expense of our employees," he said.

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