COUNCILMEN SEEK TIME ON SEWER BOND VOTE

City councilman say they don't want to rush into seeking more money to finish the city's sewer separation project.

The city is working to separate the sewer and storm-water lines. Cape Girardeau voters in 1994 approved a quarter-cent sales tax to pay for $25 million in improvements through issuance of bonds. The tax will end in 2015.

The projects are almost complete with a few exceptions. But the city has come up short of money. Of the original $25 million, there is about $4 million left with about $10.3 million in sewer improvements left to do. In addition, about $1.6 million is needed for other projects. This means the city is $8 million short of the amount needed to complete the projects.

The City Council was asked Monday night to pass an ordinance to set a special election in November to ask voters to give the city authority to issue more bonds. The measure failed, and the council decided to wait until Feburary to seek voter approval.

"I think there is no question about need," said Councilman Richard Eggimann. "The needs are there, but as a council, the keepers of the safe, we have to be careful of how it is done and use the money wisely."

Eggimann said it was just asking too much to pass the entire issue in one night.

"I don't think we should all of a sudden have three readings without any discussion about it," Eggimann said. "When you are discussing $8 million, you need to think about it carefully."

Councilman Melvin Gateley said he had the same objections. He said had the council given the measure three readings it would have had just one night to consider the matter.

"Normally with an ordinance we give it a first reading, and we have at least two weeks for the second and third readings," Gateley said. "This is an $8 million expense. Definitely the staff should have prepared it early enough so that we could have the first reading."

John Richbourg, city finance director, said the reason for the rush was that some city staff members wanted to make sure there would not be any delays with projects. Nevertheless, he said by waiting until Feburary there won't be any substantial delays. He said the money was needed more to complete projects than get others going.

"We have enough money right now to get the projects started," Richbourg said. "We just don't have enough to finish them."

The city won't be able to meet the April deadline to qualify for the State Revolving Loan Fund. The loan program is a way for cities to get low interest loans for city improvement projects. Richbourg said the interest rate for the loans is just above 2 percent.

The loans are approved three times per year. With a Feburary election, the city will have to get the bonds in early summer.

Part of the success of the additional bonds hinges on qualifying for the revolving loans so that the city can get the low interest rates. Richbourg said most of the projects left already have been approved for the loans.

"You can get approved even if you don't have the bond authority," Richbourg said.

Richbourg said another part of the success depends on the growth of revenue from the sales tax. In the last five years, the sales tax has grown about 6.5 percent. If the tax revenues grow at a rate of 2.6 percent, the city will have enough money to cover the current debt and the new bonds.

If the issue fails, then more than likely the city will have to make do with the what money is left.

"We will get as much work done as we can," said City Manger Michael Miller. "Then that would be it. We can't spend more money than we are authorized to spend."

There are four projects left on the city sewer overflow list that involve replacing and extending sewer lines. The council plans to decide what other projects could be added to the list. One of the projects is improvements to the Ranchito area.

Councilman Jay Purcell said the council ought to give some priorities to places such as the Ranchito area before worrying about extending services.

"I think we ought to make sure that we make improvements to the areas where existing residents live who are paying taxes," said Purcell.

Council members said they aren't against getting more bonds, they simply want more time to think about the issue and give the public a chance to get involved.

"I am a great supporter of the city," Gateley said. "We have to have improvements to the infrastructure. But I think we have to have everything in an orderly fashion with plenty of time to make a decision."