COUNCIL GIVES INITIAL NOD TO SOLID-WASTE, WATER-FEE INCREASES

Cape Girardeau residents likely will see a slight increase in their city utility bills next month.

The City Council Monday night adopted two ordinances on first readings that call for increasing the solid-waste fees and water-usage rates. With adoption by approval of two more readings of the ordinance, the rate increases will take effect Sept. 1.

The rate increase is part of a proposal in the city's annual operating budget, which was adopted Monday by the council.

Councilman Richard "Butch" Eggimann requested that the rate increases take effect after the Aug. 8 election when voters will consider an extension of a half-cent sales tax to benefit road improvements.

Solid-waste fees would rise by 1.5 percent and water fees by 2 percent.

The solid-waste fees increase means the average charge per household would rise by 20 cents from $13.30 to $13.50 per month. Residents would still be restricted to two 35-gallon containers per week not exceeding 75 pounds. Under the proposal, any additional containers would have to display a sticker from the city. Each sticker would cost $1.

The increase in solid-waste fees would bring about $24,500 in additional revenue to the city, said John Richbourg, city finance director.

The water rate increase would help offset increased operating costs and provide an emergency fund-reserve balance.

At the end of the current fiscal year June 30, the city's emergency reserve-fund balance will be 6.4 percent of the annual operating expenses. Based on city charter requirements, that balance should be 15 percent of all operating expenses.

There could be some problems with compliance on bonds since the rate increases won't take effect until September, City Manager Michael Miller said. "We may be out of compliance for a period of time."

The city would meet its bond coverage requirements by $7,500 at the end of the current fiscal year. The increased rates would bring in $88,000 in additional revenue and could bring the reserve fund amount up to 10.4 percent of the operating expenses during the next year, Richbourg said.

Average residential water bills would rise from $15.90 per month to $16.22 per month. Commercial rates would increase from $67.23 to $68.57.

When the city bought the water system from Union Electric, it was expected that annual increases of 3 percent would be necessary to pay for the operating expenses, Richbourg said.

The city has increased water rates by 1.89 percent for residential customers and 2.05 percent for commercial customers since 1992, he said. During the past five years, the city's solid-waste rates have increased by 2.17 percent.