CITY OUTLINES SEWER BOND PLAN AT CHAMBER COFFEE

Cape Girardeau voters will be asked Tuesday to approve an $8.5 million bond issue to continue sewer work throughout the city. The work would be funded by a quarter-cent capital- improvements sales tax already in existence.

There would be no tax increase and no tax extension for the projects, said City Manager Michael Miller.

Miller and other city officials presented information about the sewer bond election Friday at the Cape Girardeau Chamber of Commerce First Friday Coffee.

The Cape Girardeau county clerk's office in Cape Girardeau will be open this morning to cast absentee ballots on the proposal. The office at 44 N. Lorimier will be open from 9 a.m. to noon . Absentee votes can also be cast during normal business hours from 8 a.m. to 5 p.m. Monday.

Those who will be out of town Tuesday or who are unable to get to the polls that day can cast absentee ballots.

Officials say the city needs the bond revenue now to continue three sewer improvement projects, and to make additional improvements to the wastewater treatment center and replace old sewer trunk lines and force mains and lift stations along the Mississippi River. The project also includes adding sewers in an area of the city that has never had service before.

"We need the bonding to do all the work now," Miller said. Officials estimate that the projects could be completed within three to four years with the bonding authority instead of the 20 years it would take if the tax revenue had to be collected before any work was done.

The projects would be paid for with an existing quarter-cent capital-improvements sales tax passed in 1994. The tax was originally used to fund $25 million in sanitary sewer improvements.

But only nine of the 12 proposed projects were completed with that money. However, all six of the projects involving separation of stormwater and sanitary sewer lines were completed.

Not enough money exists to finish the remaining projects at this time, said Miller.

If passed, the bond revenue will be sufficient to pay for the projects without creating any tax increase or extension. The tax will expire in 2020.

The estimated revenue from the tax is $16.3 million. Estimates, which account for both inflation and interest, for the proposed projects are $15.5 million. About $4 million remains of the original bond issue revenue.

The city hopes to secure a State Revolving Loan Fund bond to fund the projects. The bonds offer lower interest and a $5.1 million cost savings to the city.

If the bond issue fails, the city likely will pay for the projects as money is available. But this could take up to 10 years, city officials said.

AT A GLANCE

Voters will decide Tuesday whether to continue with sanitary sewer improvements in Cape Girardeau through issuance of $8.5 million in bonds.

* The bonds wouldn't increase the current quarter-cent capital-improvements sales tax and wouldn't require any tax extension. The sales tax expires in 2020.

* The money would be used to finish these projects: Replace the Mississippi River lift stations and force mains, $6 million; replace Sloan Creek relief trunk sewer, an existing system constructed in the 1950s, $2.8 million; construct South Ramsey Branch lift station, force main, $1.4 million; rehabilitate the trickling filter at the wastewater treatment plant, $1.5 million; and install sanitary trunk sewers in Ranchito-Arena watershed, $500,000.

* Costs of sanitary sewer improvements: Original projects (nine of 12 are completed), $10.2 million; added projects, $2 million; bond costs, $250,000; remaining bond revenue, $3.95 million; bond revenue needed, $8.5 million

* Project could be funded by several methods, including conventional bonds, $20.6 million; "pay as you go" method, $16.6 million; State Revolving Loan bond, $15.5 million.