COUNCIL STUDIES $5 MILLION FLOOD CONTROL BOND ISSUE

CAPE GIRARDEAU -- The City Council tonight will consider whether to authorize issuance of $5 million in revenue bonds to fund the city's share of the Cape LaCroix/Walker Branch Flood Control Project.

The bonds would be issued by the Cape Girardeau Public Facilities Authority and would be used to finance the city's $10 million share of the $35 million flood control project. The project is being done jointly with the U.S. Army Corps of Engineers.

Assistant City Manager Al Stoverink said the revenue bonds, coupled with $5 million in bonds issued last summer, would provide the remaining financing needed to complete the project. The bonds would be retired with receipts from a quarter-cent sales tax that voters approved in 1988.

Stoverink said that payments for the flood control work can be spread out through 1993. But, he said, the city wants to purchase the bonds because of the low interest rates that are available now.

"We have to do it sometime," Stoverink said of the city's wish to purchase the bonds. "We want to do it at this point because of the interest rates, but we could have waited possibly until next year without purchasing bonds."

Stoverink said the city expects to be able to sell the bonds at an average interest rate below 6 percent. He said the bonds won't require voter approval because they're considered "cash-flow financing."

The Corps of Engineers is scheduled to let bids on the entire Cape LaCroix Creek segment of the flood control project this spring, with construction slated to start by the first of July, Stoverink said.

Also, right-of-way acquisition is nearly complete on the Cape LaCroix Creek segment and is "well under way" for the detention basin to the north of the city. The city also is acquiring rights of way along Walker Branch.

Stoverink said right-of-way acquisition has altered the flood control project's cost.

"Frankly, we're not real happy with what we're having to pay for rights of way for this project," he said. "The biggest cost increase there is property acquisition."

Because the overall project's cost has increased, Stoverink said there will be less money available from sales tax receipts for other storm water improvement plans. When the sales tax was approved, city officials thought about $2 million of the tax receipts could be earmarked for such projects.

"But it appears now, the Cape LaCroix/Walker Creek project is going to require nearly all of our sales tax funding," he said.

Stoverink said the city's Public Facilities Authority board will meet Thursday to adopt the appropriate documents to secure the financing. Final readings on the bond ordinance would occur at the April 15 meeting.

In other business tonight, the council also will consider acceptance of the street and storm sewer improvements for El Rio Drive, which recently were completed.

In a letter to the City Council, City Engineer J. Kensey Russell said the improvements are "generally in accordance" with approved plans.

The council also will consider a resolution to improve various streets in connection with the 3-inch asphalt resurfacing program. The streets include:

Stoddard, from Perry to east of Missouri Avenue.

Park Avenue, from Jefferson to Cousin.

Spanish, from First to Second Street.

Spring, from Themis south to the "Old Railroad Row."

Sharon Lane, north from Lear for 532 feet.

Hillcrest Drive, from Country Club to Timon.

North Middle, from North Street to Washington.

Amethyst Street, from Frederick to Middle.

Scott, from Perry to Missouri Avenue.

Johnson, from Main to Rand.

Rand, from Green Acres Drive to Cape Rock Drive.

Spring, from Good Hope to Bloomfield.

The maximum cost to be assessed to property owners along the street will be $10 per front foot, but driveway pipes, where required for drainage, would be paid by the respective property owners, over and above the $10 per front foot assessment.

The council tonight will conduct public hearings on the following items:

Voluntary annexation into the city of real estate owned by the Edna Siemers Trust, Allene and Leon Ainsworth, Drury Development Corp. and Wal-Mart Stores Inc.; and the property owners' request to rezone the tract from single-family residential to general commercial.

The tract of land is situated south of Route K, west of Interstate 55.

The request of Frank Steck and A & A of Cape Girardeau Inc. for a special use permit to operate a real estate office at 1804 William Street in a single-family residential district.

The request of Mr. and Mrs. John Wescoat and Taco Bell to rezone 602 Penny Ave. from a local commercial and two-family residential district to a local commercial district.