CITY TO SEEK MOVE BONDS FOR SEWER CONSTRUCTION

When it came down to choosing either $8 million or $8.5 million in bonds for a sanitary sewer project, members of the Cape Girardeau City Council didn't squabble over money.

They didn't even debate it during the 17 minutes it took to complete city business Monday night.

Instead, the council chose the plan that should help alleviate some water problems for residents in the Ranchito drainage basin. Residents of the neighborhood often have problems with sewers and storm water flooding basements of their houses after heavy rains.

While the plan won't eliminate the entire sanitary sewer and storm water problem in the area, it should solve some of the problem, said Mayor Al Spradling III.

By approving Option B, a plan that calls for issuing $8.5 million in bonds for sewer work, the city gave its approval to include improvements to the Ranchito basin in the list of sewer projects to be completed. The Ranchito project is expected to cost $500,000.

Cape Girardeau voters will decide the issue Feb. 8.

In all, the sewer project will cost $12.4 million to complete. The city already has $3.9 million left in its sewer-project fund.

The council approved the second of two options that called for issuing bonds to be repaid from the current quarter-cent capital-improvements sales tax. The money will be used to fund the last three sewer projects and add others.

"Option B seems more appropriate for the sanitary work at this point," said City Councilman Tom Neumeyer.

The proposed bond issue would not mean a tax increase or a tax extension for the sanitary sewer projects. It would just be an expansion of what the city can do with the money raised through the quarter-cent sales tax.

Cape Girardeau voters first approved the capital-improvements sales tax in 1994 to fund $25 million worth of improvements to the city's aging sewer system. The largest project was separating the sanitary sewer and storm water drainage pipes.

In all 12 projects were proposed. Eight of those have been completed and a ninth is under way. But costs continue to rise as the projects are completed.

Since 1994, the original estimates have increased $4.8 million. The added costs are attributed to higher wages, a good economy and changes in the scope of the sanitary sewer project.

By asking voters to approve the $8.5 million bond issue in February, the city could finish its planned projects and add improvements to the waste-water treatment plant and the Ranchito project.

"We have looked at this up and down and forward and backwards to say the least," said Councilman Richard Eggimann. "We've talked about it for several weeks, and this seems to be the most reasonable."

The council spent 45 minutes discussing the project with staff members at a Sept. 20 council meeting.

SANITARY SEWERS

Plan B

*Issue $8.5 million in State Revolving Loan fund Bonds, to be repaid from the currently approved capital improvement sales tax, with an anticipated 2.8 percent increase in sales tax for the remainder of the 20 years.