Salary freeze likely for Cape city workers

A proposed salary freeze will likely be necessary for Cape Girardeau city employees, finance director John Richbourg said Thursday.

Employees will still receive a 2 percent cost-of-living increase as of Jan. 1 under the proposal, Richbourg said.

"The city has a step grade plan, so salaries usually move up, and that won't happen this year," Richbourg said.

The budget was proposed April 23 but has not been formally approved yet, said Heather Brooks, assistant to Cape Girardeau city manager Doug Leslie.

It must be formally adopted by July 1 because the fiscal year runs from July 1 to June 30, Brooks said.

There was simply no way to fund a salary increase for employees as well as the cost-of-living increase, Brooks said.

About $145,000 in fuel costs, a projected 8 percent spike in health insurance, increased electric costs and general inflation led to the constraints on the budget, Brooks said.

"Revenue for the city has been flat, and without revenue, we can't increase employees' salaries," Richbourg said.

"Revenue is not increasing at a normal amount. It's increasing at less than 1 percent," Brooks said.

The problem is widespread throughout the state, and many cities have been forced to scale back in other areas, something that Cape Girardeau hasn't had to do, Brooks said.

"We're fortunate not to have to cut back and are able to maintain a good benefits program," Brooks said.

There is a general understanding among city workers that the resources are limited, assistant police chief Randy Roddy said.

"Everybody knew the sales-tax revenue was down from what was projected. All we can do is press on and hope for revenue increase next year," Roddy said.