Reward (in terms of money/merit) for reports is terrible solution.

What if I buy a posting bot and create 10-15 accounts, then start spamming the local sections which have no moderator and use the main account to report the posts.
You can config the bot to directly report those spam posts created with the fake accounts.

At the end everything is automated and you do nothing at all to increase your report count.

No, if you report, do if for the good of the forum, for the community not for money.