COST OF PAY HIKES DISCUSSED

Nearly a third of the city's employees have reached the top step in the pay scale, and that is both good and bad.

Because Cape Girardeau has tried to increase it salaries, all city employees will get a 2 percent increase by July 1. That will bring a three-year pay plan to its completion, and the average city worker will see a 6 percent increase with step and pay raises.

With so many employees at the top of the scale, there are fewer job vacancies, which is good. But the problem is trying to keep up with inflation and the cost of living while staying within budgeted amounts.

Nearly 75 percent of the annual budget is allotted for city payroll and salaries.

"We're always concerned with competition and keeping up with the Joneses," said City Manager Michael Miller. "But we are over the main hump. This has been a three-year attempt to get the pay on line."

But concentrating on salary increases meant not focusing on other needs like capital improvements and maintenance projects.

"Revenue has grown, but budget expenditures are higher than the last few years," said John Richbourg, finance director.

Because the revenue wasn't enough to finance all capital improvement projects, many were cut.

"We have to find a way of not adding programs without designating a funding source," Richbourg said.

Developing a city budget is much like developing a household budget. Miller said, "We have to live within our means."

Council members reviewed the 1999-2000 proposed budget at a retreat Friday. The council won't adopt the budget until mid-June.