Options for generating revenue are discussed
SIKESTON - The Sikeston City Council awarded the bid to provide the city with workers compensation insurance to Liberty Mutual during their special meeting this morning.
The premium for one year of coverage for both the city and Board of Municipal Utilities is $387,903 with the city's portion being $131,997. "Their premium went up and ours went down," said Karen Bailey, city treasurer, as the city has a smaller payroll and has had fewer losses than the BMU.
Bailey said the policy is basically reinsurance in which the city pays any single claim less than $200,000 or a total of $1 million.
"This is basically the plan we had last year," said City Manager Doug Friend. "Really it's the only option we've got."
Five bid packets were sent out, Bailey said.
Council also discussed several items.
* Mark Grim of Peckham, Guyton, Albers and Viets, a St. Louis consulting firm specializing in planning and urban renewal projects, discussed with Council options for generating revenue.
Friend estimated a revenue shortfall of $450,000 to $500,000 at the existing level of services provided by the city.
Revenue options discussed included special and general obligation bond issues; issuing revenue anticipation notes; and sales tax revenue bonds.
"We've got two different issues," said Mayor Mike Marshall. With the budget shortfall and plans for long-term improvements, the city needs "to look at two different financial options...We need to find another source of revenue."
Marshall suggested scheduling meetings with area service clubs in the fall to discuss "budget challenges."
In later discussion, Marshall noted the Land Clearance Redevelopment Authority's Community Development Block Grant application was not among the 36 approved, even though being rated number one based on need and had matching funds available.
The City is appealing the decision and seeking more information on why it was denied. "They haven't sent us the details," said Friend.
* Bill Green, director of the department of economic development, briefed the Council on a proposed Village Green Tax Increment Financing project which would involve tearing the shopping center down and rebuilding it in stages, reorienting it toward South Main.
The shopping center includes the Big Lots building and Dairy Queen.
The first stage, Green said, is to send out requests for proposals.
* Council members delayed appointments to an ad hoc public education-government channel advisory committee until the next regular meeting when other city board and committee appointments are slated to be made.