Cape council to hold hearing on $90.3 million budget

The Cape Girardeau City Council will look to raise water, sewer and solid-waste fees when it meets Monday.

With the fee hikes, the average Cape Girardeau utility bill would climb to $77.35 a month, city officials said.

The fee increases are among a number of fee increases contained in the proposed 2016-2017 city budget. The council is scheduled to hold a public hearing and give preliminary approval to a $90.3 million budget at the meeting. The new budget year will begin July 1.

The proposed budget includes $27.3 million for public works, $26.5 million for capital improvements, $14.5 million for public safety, $6.6 million for parks and recreation, $6.4 million for development services, $5.6 million for debt service, $2.6 million for administrative services and more than $287,000 for contingencies.

City staff officials have proposed a 3 percent increase to residential and commercial water rates and increases to the solid waste and transfer station fees.

Cape Girardeau residents would see their monthly residential solid-waste charge increase by 50 cents to $19.75. Disposal fees at the city's transfer station are proposed to increase 2.61 percent to $59 a ton, according to city finance director John Richbourg.

The proposed water-rate increase will be only the second since July 1, 2011, he pointed out in a report to the council.

Since that date, some of the additional revenue has been set aside for future capital improvements, Richbourg said. The city expects to have a balance of more than $700,000 set aside for future capital improvements by the end of next year.

Including the latest proposed solid-waste fee increase, monthly solid-waste charges will have averaged increases of 3.35 percent a year.

City officials have called for a 2 percent increase in residential and commercial sewer rates, the first change in sewer rates in three years. The fee hike would raise monthly sewer charges for residential and commercial users by 64 cents and $2.58, respectively.

Counting the proposed increases in utility fees, the average Cape Girardeau utility bill will have risen over the past five years by just over $4 or an average annual increase of 1.1 percent, Richbourg said.

City manager Scott Meyer said, "We certainly have tried to hold the costs down."

But he said the proposed fee increases are necessary to cover increased operating costs, including additional expenses for salaries for city employees and equipment.

The city's more than 400 full- and part-time employees would receive a 2 percent pay hike.

Mayor Harry Rediger said the proposed utility fee increases are "pretty low" both in terms of percentage and dollars. Rediger added he prefers the city raise fees a little at a time rather than wait to implement larger fee hikes down the road.

As part of the new budget, city officials also propose increasing various development fees, including rental-inspection fees, and raising fees for two recreational leagues.

Development services director Alex McElroy said raising fees for planning and inspection services would help cover expenses associated with such services. Currently, Cape Girardeau has some of the lowest fees compared to other cities, he said.

McElroy said the city staff has proposed "moderate increases" in fees. He added the fee increases would cover "minimum direct costs" associated with planning and inspection services.

Fee increases also would allow the city to add a full-time person to review development plans, he said. The city currently has a part-time employee who reviews development plans. The city contracts out some of the work when demand warrants, he said.

mbliss@semissourian.com

(573) 388-3641

Pertinent address:

401 Independence St., Cape Girardeau, Mo.