Analyst recommends water rate increase to Cape Council to pay for infrastructure improvement 10-year plan

Rate analyst Carl Brown recommends a water rate increase to pay for the Cape Girardeau’s water infrastructure improvements outlined in the city’s 10-year plan, during the City Council meeting Monday, June 17, at city hall.

Brown is an analyst with www.gettinggreatrates.com who is working with the city’s finance department to determine recommendations for what finances may need to look like to pay for the improvements to the city’s water system. Brown explained that the city falls at .7 % on the affordability index. He said the affordability index is partially based on the city’s median household income.

“The affordability index typically equates the monthly bill for water for a 5,000 gallon per month residential customer and the median household income in the service area of those kinds of households,” Brown said.

He pointed out that the average affordability rate is at 1%. Per the city’s charter, the City Council is not able to increase water rates by any more than 5% annually.

“I've done the math for the dollar amount of improvements that I've seen in a capital improvements plan over the next 10 years. You cannot pay for that with that 5% limitation,” Brown said. “At least for a time, it appears that you're going to need to override that limitation so you can get started on the capital improvements that you need.”

Brown said his study and final recommendations have not been completed.

Mayor Stacy Kinder added that raising the city’s rates by more than a 5% increase each year would require voter approval.

Other business

The council also approved final payments to replace the Cape Girardeau Regional Airport terminal’s existing roof. The roof sustained damage from a recent thunderstorm and the city contracted Riverside Roofing Co. LLC to replace it. The company submitted a bid of $176,120 that was accepted Aug. 29. The replacement of the roof was completed with funding from a city insurance policy.

The council also approved the first readings of ordinances that annex land at 212 Misty Hollow Lane into the city limits, zones the land as (R-1) Single Family Suburban Residential District and extends the boundaries of Ward 4 to include the land. A public hearing was held to consider the annexation and zoning May 20.