By ANN PIERCEALL

Herald-Whig Staff Writer

HANNIBAL, Mo. -- Hannibal voters will decide April 8 how to finance the city's growing list of major street construction and improvement projects.

The city wants to use $5.1 million in revenue bond financing to speed up improvements. But the city can't issue a 10-year bond when its repayment source -- the half-cent sales tax for street improvements -- sunsets every five years.

So the city is asking voters to approve Proposition 1, which would repeal the current half-cent sales tax used for street improvements -- due to expire in 2009 -- and replace it with a new half-cent sales tax with no sunset provision.

"This is not a tax increase," City Manager Jeff LaGarce said. "After a lot of study and exploration, we identified the best means to enhance what we can provide the public in street improvements and maintenance, without touching anybody's pocketbooks."

The $5.1 million in revenue bonds would be used to finance six major street projects: rebuilding West Ely Road, Stardust Drive and Shinn Lane; resurfacing Main Street; redoing the Pleasant Street/West Ely Road intersection at U.S. 61; and extending Stardust Drive.

Some projects have been designed since the 1990s. The city has an ambitious schedule through 2011 for design and construction for each project, using the bond money.

The city would use the half-cent sales tax, which generates about $1.3 million a year, to make the annual bond payment of about $580,000.

That would leave more than $700,000 in the sales tax funds for streets. About $100,000 would continue to be used to replace and maintain street equipment, with the remaining $600,000 used for street repairs and maintenance, or more than double what was spent in 2007.

In 2006, for example, there was no money left over for street resurfacing after completing the Fulton Avenue and Paris Avenue projects. Last year, there was only $246,000 available, which paid for about 36 city blocks.

"We're talking about resurfacing a lot of area year after year after year," LaGarce said.

City Engineer and Director of Public Works Jamie Page said neighborhood streets would benefit most from passage of Proposition 1.

"It's going to allow us to stretch those dollars we have," he said, noting the city has more than 150 miles of streets. "They've been deteriorating at a rate faster than we can repair them. The funds just aren't there."

LaGarce said the plan would allow for future city councils to refinance the bond and finance additional major projects that may arise.

-- apierceall@whig.com/(573) 221-5879