Sales-tax fuels Cape Girardeau city government

Southeast Missourian

Consumer spending fuels Cape Girardeau city government, generating more than $29 million in sales-tax revenue for everything from general operations to road improvements. City manager Scott Meyer says sales-tax revenue has allowed for expansion of city services over the years. At a city council study session earlier this year, Meyer estimated 60 percent of the city’s sales-tax revenue is paid by nonresidents who visit Cape Girardeau. City finance director John Richbourg says nearly half the city’s general operating fund is supported by sales taxes. The city’s total budget envisions spending of $90.3 million from various sources, including sales and franchise taxes, property tax, cigarette tax, motor fuel tax, fines, user charges, fees and grants. Operating expenses are projected to total more than $58.4 million, while capital expenses are budgeted at more than $31.8 million. City officials say payroll, which includes benefits, accounts for more than 45 percent of all operating expenses. The proposed budget includes a 2 percent pay raise for city employees. The council is expected to finalize the budget when it meets Monday.