CITY COUNCIL APPROVES $34 MILLION BUDGET FOR NEXT FISCAL YEAR

The Cape Girardeau City Council Monday night gave its nod to two fee increases as they approved the proposed $34 million budget.

Water fees are set to go up 2 percent and solid-waste-collection fees will go up 2.3 percent. This means the average cost per month for both services will go up from $28.59 to $29.20.

The water fees are being increased to allow the department to comply with the requirement to have 15 percent of its budget in reserves to use for emergency purposes.

The city has a charter agreement to keep a reserve fund, and currently the water fund is well below the 15 percent requirement. The current fee increase will put the water fund at about 10 percent reserve funds, Mayor Al Spradling III said.

Solid-waste-collection fees are going up to pay for rising costs and to expand the city's mulching program. Each year the city grinds tree limbs and leaves into mulch to give to Cape Girardeau residents. The city plans to expand that program to keep tree waste out of landfills.

The city's operating expenses are going up this year by 14.11 percent. The increase is due in large part to a $2.4 million increase for debt service. There is a $1 million increase on the final payment of a bond, and the payment schedule for bonds from June 1998 is set to begin this year.

The council also passed an enabling measure on the taxi coupons allowing the city to continue to provide the subsidy for the coupons.

Senior citizens and disabled individuals pay $1 for each coupon and the general public pays $2 per coupon. The coupons are good for one free ride to anywhere in the city. The city pays the difference to the taxi company, Kelley Transportation.