Cape City Council discusses decrease in sewer rate

A completed sewer-rate study recently ordered by the city of Cape Girardeau indicates rates could be reduced slightly and not affect funding capabilities for ongoing construction and later operation of a new wastewater treatment plant.

"We can lower the [sewer] rate by $1 per month," city manager Scott Meyer told the council during its annual retreat Friday at the Osage Centre.

The announcement likely will prompt the council to discuss adjusting the rate at an upcoming regular meeting. Also presented were average rates charged for sewer in Missouri cities of comparable size, average local rates and average rates for cities recently affected by costs associated with having to meet regulations on wastewater treatment set by the Missouri Department of Natural Resources.

In 2011, 80 percent of Cape Girardeau voters approved two propositions that extended a quarter-cent capital improvement sales tax and authorized bonds to build and operate a new wastewater treatment plant and sewer line improvements.

A campaign for a new wastewater treatment facility began when the city had to bring its more than 50-year-old plant into compliance with state and federal standards for untreated wastewater. The plant also faces problems with capacity. During the retreat, public works director Tim Gramling said the cost of constructing the new plant, at this point, is coming in under budget. Construction costs and an estimate of future maintenance costs were used to determine the rate sewer customers should be charged.

The rates were increased in 2011, though not to the full amount allowable by city ordinance. The flat fee charged to sewer customers is $13.19 per month, up from $4.50 in 2011. An additional $3 per month is charged per hundred cubic feet of usage. A fee for water usage has been raised the full amount allowed, from $1.35 to $3.

The latest available figures on sewer rate increases show the average residential cost increase at $19.38, of which $17.87 is charged for sewer and the remainder for water. For commercial customers, the average is $79.97, of which $67.57 is for sewer and the remainder for water.

A total average monthly sewer rate for Cape Girardeau residential customers based on using 5,000 gallons was $33.23. The average rate for cities of comparable size was $33.31. The local average charged was $32.40, and the average for cities affected by regulation was $36.56.

Meyer said a $1 per month reduction for all customers will be equal to the city collecting $204,000 less per year. The city collects $777,000 per year at the current rate.

Some residents called for revenue the city receives from Isle Casino Cape Girardeau to be used to reduce sewer rates, although that can't be done directly since the revenue isn't considered stable by bond issuers, and bonds are used to pay for the wastewater treatment plant construction. Members of the council also have asked that rebates be considered for some sewer charge relief and have said they are hopeful rates can be reduced based on the rate-study results.

Meyer said if the council approves the $1 per month drop in sewer rates along with proposed cuts and expirations of restaurant and fire sales taxes that would need to be approved later by voters, the total reduction to the city revenue would equal $2,627,000 per year.

The council did not further discuss sewer rates during the retreat.

eragan@semissourian.com

388-3627

Pertinent address:

401 Independence St., Cape Girardeau, Mo.

1625 N. Kingshighway, Cape Girardeau, Mo.

2007 Southern Expressway, Cape Girardeau, Mo.