Cape council approves fee increases, fiscal 2019 budget; city projects less total spending

Cape Girardeau city government plans to spend some $4.8 million less in the coming fiscal year even as the cost of general operations increases and the city raises fees for water, trash and other services.

The city council Monday unanimously approved the fiscal 2019 operating budget and fee increases.

The budget for the fiscal year beginning July 1 envisions spending $70.59 million compared to $75.4 million in fiscal 2018. The city�s interactive, online budget site shows slightly different figures because of accounting differences, city finance director John Richbourg said.

Richbourg said the drop in budgeted expenses reflects fewer capital improvement projects. The city completed several major capital improvements in the current fiscal year, including the opening of a new fire station and a new police station.

For the coming year, capital improvements are expected to total nearly $8 million compared to more than $15 million in the 2018 fiscal year, budget figures show.

Operating expenses, however, are expected to increase from $60.1 million to $62.6 million, according to the budget.

Residents will pay slightly more for water and trash in the new fiscal year beginning July 1.

The council raised water rates by 2 percent and increased the monthly residential solid waste charge from $20.15 to $20.75.

The tipping fee, the amount charged those who haul trash to the city�s transfer station, will increase from $60.25 a ton to $62 a ton, city officials said.

Households will pay, on average, $80.14 a month for water, sewer and trash services, an increase of $1.27 from the current charge, city officials said.

The sewer charge did not increase. Richbourg said before the meeting the city has earmarked more sales tax revenue to help pay sewer expenses in fiscal 2019.

Richbourg said in a council agenda report the fee increases will allow the city to meet its bond obligations and fund the operation of water, sewer and trash services.

While utility rate hikes have occurred in recent years to cover costs, Richbourg said the average annual increase over the past seven years has been slightly less than the rate of inflation.

Water and trash fees aren�t the only fees going up.

The city will increase its utility disconnect and reconnect fees by 1.6 percent and raise various fees for parks and recreation, and inspection services.

Alex McElroy, city development services coordinator, said before the meeting the city in recent years has increased inspection fees to bring them closer in line to the actual cost of providing such services.

Even with the increases, the city is still not breaking even on the cost of providing the various inspection services, he said.

For example, he said, the new budget raises the demolition permit fee from $50 to $75, which is still less than the $147 it costs the city for that inspection service.

The council gave initial approval to the fiscal 2019 budget after holding a public hearing. The council is scheduled to give final approval to the budget at its June 18 meeting.

While city employees� won�t receive a pay raise, the budget upgrades the employees� retirement plan at a one-time cost of $4.5 million, according to Richbourg.

City manager Scott Meyer said the move will add about $100,000 in recurring annual expenses.

City officials have said the improved retirement plan will be more competitive with plans offered by other government entities.

The budget authorizes 410 full-time staff. When part-time workers are included, the budget authorizes a workforce of nearly 500 full-time equivalent positions.

Meyer told the council initial budget requests for everything from office supplies to outside legal fees have been cut to balance the budget.

Ward 4 Councilman Robbie Guard said the council wasn�t looking to make �drastic cuts� this year.

But he said the council and city staff will have to look at how to balance future budgets at a time when sales tax revenue growth has been flat.

�I think in the near future we will have to look at where we can make up the shortfall,� he said. Among the options, he said, are cutting back personnel or services or passing a use tax on out-of-state purchases.

mbliss@semissourian.com

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