CAPE CITY BUDGET DOUBLES SINCE '91

Cape Girardeau's city budget has doubled over the past four fiscal years to nearly $47 million.

Refinancing of bonds, capital improvement projects and the city's take over of the water system are key reasons for the increase, City Hall officials said.

Net spending was $23.4 million in 1991-92. For the 1994-95 year that ends June 30, projected expenses are $46.9 million.

City administrators are putting the finishing touches on the proposed budget for fiscal 1996. They won't disclose projected net expenses for the year beginning July 1 until the budget document is distributed to the City Council. That should occur Monday.

Finance Director John Richbourg said long-term bond expenses jumped from $2.7 million in 1991-92 to a projected $10.3 million in the current fiscal year.

That includes $7.3 million paid out to retire old bonds as part of a bond refinancing move.

City Manager J. Ronald Fischer said the city refinanced at a lower interest rate within the past couple of years, but the old bonds couldn't be paid off until this fiscal year.

Spending for general capital improvements climbed from $104,000 in 1991-92 to a projected $5.5 million for the current fiscal year. Airport improvements were included in the 1994-95 budget.

The city spent $1.5 million on the Cape LaCroix/Walker Branch Flood Control Project in 1991-92. The city budgeted $2.4 million for such expenses for 1994-95.

Richbourg said the city's purchase of the water system from Union Electric also added to the city's expenses.

The city took over operation of the water system about a month before the end of fiscal 1992.

As a result, water operational costs totaled only $492,000 in 1991-92, but jumped to nearly $3.3 million the next year and have increased annually since.

In 1993-94, water operations totaled $3.6 million and expenses were projected at $3.9 million for the 1994-95 year.

While the city is spending twice as much as it did in 1991-92, general fund expenses have increased at a much lower rate.

The general fund deals with everything from police and fire department operations to street maintenance and engineering. City Hall offices come under the general fund.

General fund expenses totaled $10.6 million in fiscal 1992. In fiscal 1994, the city spent nearly $13 million on general fund operations and was budgeted to spend a similar amount this fiscal year.

Fischer said bond issues for capital improvements have been a big factor in the city's growing budget.

"If you have projects going on and you are doing it through bond sales, that is going to skew your budget," he said.

Fischer said capital improvements and increased costs associated with water and sewer operations reflect the community's growth.

"You want to see that growth," he said.