ERROR RESULTS IN SEWER UNDER-BILLING TO MANY

A computer error in the city's finance department resulted in a year-long respite for more than a third of Cape Girardeau's 11,000 city sewer customers.

But those residents next year will have to make up the $85,000-$100,000 sewer revenue shortfall. Sewer fund revenues total about $1.2 million annually.

In August, Finance Director John Richbourg discovered that for 12 months, 4,100 city customers paid lower sewer rates than the rest of the city.

Richbourg said that, starting in January, those customers will begin paying back the money they weren't charged in 1992 and 1993. The added charge will average about $1.70 to $2 a month per customer.

"Some people will get more than that, and some may receive a credit, because its based on their use," Richbourg said.

He said the under-billing was the result of a computer programming error, which allowed the 4,100 households in August 1992 to continue paying sewer bills at the same rate while the rest of the city was subject to a rate hike.

"When the computer got to a certain account number, it stopped updating the bills," Richbourg said. "It's basically a programming error that resulted from the city converting their files during the water purchase last year.

"But it has been corrected."

Richbourg said it's relatively easy for the city to track which customers didn't pay at the new sewer rates.

He said only those customers with account numbers above 4006504900 were affected. They'll see a special assessment on their bills after January.

"We will separate the charge out in the bills so the customer will know what it is," he added. "We will also send a letter along with those 4,100 customers' bills explaining what the additional charge is."

It will be more difficult to track affected customers who moved during the year and ended up paying two rates. Also, some likely moved out of the city during the time.

"Obviously, anyone were not able to account for will simply be lost revenue," Richbourg said.

When the city council was apprised of the mistake, some wondered whether current sewer rates ought to be adjusted to reflect wrong assumptions based on uncollected revenue.

That's because the present rate, derived in August based on sewer fund revenues and expenses, was increased to reflect the $85,000 to $100,000 shortfall from last year's billing mistake.

Because that money now will be paid back, council members wondered whether the "padded" sewer rate ought to be adjusted downward. The current sewer rate is $1.04 per 100 cubic feet of water used.

Councilman Doug Richards suggested that customers should get a rebate to reflect the error.

But Richbourg said it would be impossible to compute use and rates for all the customers in the city and adjust them accordingly. He said the city will be able to reassess the rate next August.

"I think how that plays into this is we'll offset any increases that may have been required in the future," he said.

Mayor Gene Rhodes said he was concerned that among the 4,100 who will see the special charges next year, some will be on fixed incomes and unable to spare the additional $2 on their sewer bill.

But Councilman Al Spradling III said it's unfair if they're allowed to pay a lower rate than the remainder of the city.

"I think it was a mistake and people got the benefit of that mistake for a time," Spradling said. "But I think everyone ought to pay the rate they should pay.

"It's not fair to the people who have been paying their bills at the higher rate all year if these 4,100 don't have to pay."