Water rate hike recommended for Cape to pay for infrastructure improvements

Rate analyst Carl Brown recommends a water rate increase to pay for Cape Girardeaus water infrastructure improvements outlined in the citys 10-year plan, during the City Council meeting Monday, June 17, at City Hall.

Brown, an analyst with www.gettinggreatrates.com, is working with the citys finance department to determine recommend-ations for what finances may need to look like to pay for the improvements to the citys water system. Brown explained that the city falls at 0.7% on the affordability index. He said the affordability index is partially based on the citys median household income.

The affordability index typically equates the monthly bill for water for a 5,000 gallon per month residential customer and the median household income in the service area of those kinds of households, Brown said.

He pointed out that the average affordability rate is at 1%. Per the citys charter, the City Council is not able to increase water rates by any more than 5% annually.

Ive done the math for the dollar amount of improvements that Ive seen in a capital improvements plan over the next 10 years. You cannot pay for that with that 5% limitation, Brown said. At least for a time, it appears that youre going to need to override that limitation so you can get started on the capital improvements that you need.

Brown said his study and final recommendations have not been completed.

Mayor Stacy Kinder added that raising the citys rates by more than a 5% increase each year would require voter approval.

Other business

The council also approved final payments to replace the Cape Girardeau Regional Airport terminals existing roof. The roof sustained damage from a recent thunderstorm and the city contracted Riverside Roofing Co. LLC to replace it. The company submitted a bid of $176,120 that was accepted Aug. 29. The replacement of the roof was completed with funding from a city insurance policy.

The council also approved the first readings of ordinances that annex land at 212 Misty Hollow Lane into the city limits, zones the land as (R-1) Single Family Suburban Residential District and extends the boundaries of Ward 4 to include the land. A public hearing was held to consider the annexation and zoning May 20.