CAPE COUNTY SALES TAX RECIPTS RISE

JACKSON - For the first time this year, Cape Girardeau County has received a monthly sales tax check that is greater than the one received the same month a year ago.

Auditor H. Weldon Macke told the county commission Thursday that the April check was for $252,309.37, which represents a 9 percent increase over the $241,080 check received in April of 1990.

"This is the first plus check we've gotten this year, and it's good to see," said Macke. "The rest have all been negatives."

For each of the first three months of the year, 1991 receipts were behind those of 1990, causing some concern from county officials who rely on the sales tax as the sole tax source of general revenue funding.

After three months, sales tax receipts were running 5 percent behind 1990, when a normal growth in recent years has been 4-6 percent.

Even with the April increase, Macke advised the commission that overall receipts are still about 2 percent behind last year. The auditor said after two more months, the commission should have a better idea of what to expect in sales tax revenue for the year.

"We'll be watching the next two checks very closely to try and determine a trend for the year," added Macke.

The check received this week should generally reflect sales during the month of February that were paid to the Department of Revenue in March and then distributed to taxing entities in the state.

Through the first four months of this year, Cape County's total sales tax receipts have been $1,029,072, which compares with a figure of $1,049,143 for the same period in 1990.

Total sales tax revenue taken in from the county's half cent sales tax in 1990 was $3,059,186.87.

"We were really concerned about the drop the first quarter of the year and if it doesn't turn around we might have to curtail some spending," Macke said.

Presiding Commissioner Gene Huckstep agreed with Macke on the need to keep a close eye on future sales tax checks to see whether closer scrutiny of the county's budget might be in order.

In preparing the 1991 budget, Huckstep expressed concern about the current economic downturn and the impact it might have on the county's economy. He warned that the commission would monitor spending closely during 1991 to avoid jeopardizing the county's strong financial position.

Another concern raised by Huckstep is that Cape County's two-year banking contract, will expire July 1. It is unlikely the county will receive another bid to match its present 9.53 percent interest rate earned on the capital trust account of over $2 million and on idle county funds.

Those bids will be opened May 2 and both Macke and Huckstep agree it is unlikely the top interest rate will be anywhere near what it has been the last few years.

"If you take the combination of a drop in interest income and a slowdown in sales tax growth, Cape Girardeau County could have a sizable drop in revenue this year over the past few years," said Huckstep.

"We're going to have to keep a close eye on every dollar we spend or we'll be in trouble in a hurry."