COUNCIL CONSIDERS BOND ISSUE TO FINISH CITY SEWER PROJECTS

Rising labor costs, squabbles over right-of-way easements and a changing scope of the project mean more money is needed to finish work on Cape Girardeau's sanitary sewer projects.

City Council members spent 45 minutes during Monday night's study session discussing options on how to deal with the matter.

Original estimates in 1994 for the project were $25 million. To finish the work and add projects requested by the council would cost another $12 million.

Eight projects are finished, and a ninth is under way.

City staff proposed two options, both of which would require issuing bonds and voter approval. But the council has until mid-October to decide whether to issue $8 million or $8.5 million in bonds. The city has $3.9 million remaining in its sewer project fund.

If approved by the council, the issue likely would be on the ballot for a Feb. 8 election.

The proposed bond would not mean a tax increase or a tax extension of the quarter-cent capital-improvements sales tax approved in 1994. It would just be an expansion of what the city can do with the bond money, said City Manager Michael Miller.

Since 1994 when the projects were proposed, costs have increased by $4.8 million. The added costs are attributed to a strong economy and higher wages, a battle for right-of-way easements and a change in the scope of the sanitary sewer improvement project.

By asking for at least $8 million in bonds, the city could finish its planned sewer improvements and add other projects like improvements to the wastewater treatment plant, Miller said. "As long as funding is available why not do larger projects?" said Miller.

But some council members are unsure.

Councilman Frank Stoffregen asked, "If we do this project, are we going to miss the mark again?"

Estimates for the project are 17.5 percent more than originally expected. The consulting engineers for Sverdrup Corp. say the increase is because the original estimates were given in 1990 dollars and didn't reflect inflation.

Councilman Melvin Gateley said he would like to see the project finished but is concerned about costs.

Councilman Richard Eggimann said the city must be sure all its water and sewer problems are solved with the proposed bond issue.

"If we can't solve all the water problems with this final deal, then we've not done our job correctly," said Eggimann.

Mayor Al Spradling III warned the council about waiting to long to get the work finished. "The longer we wait the more expenses we incur," he said.

Coordinating the vote with other scheduled elections also means running the risk of rising costs, said the mayor.

SANITARY SEWERS

Plan A

*Issue $8 million in State Revolving Loan Fund Bonds, to be repaid from the currently approved capital improvement sales tax, with an anticipated 2.6 percent increase in sales tax for the remainder of the 20 years.

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 in crease in sales tax for the remainder of the 20 years.