The Cape Girardeau City Council on Monday, Aug. 5 voted to place an initiative on the Nov. 5 ballot to increase water rates above the 5% cap outlined in the city’s charter. City officials say the vote is needed to keep water safe for drinking, to meet increased demand for water, and to ensure the city can meet the needs for economic and residential growth.

Here are some of the issues connected to the city’s water system. The following information has been collected from city and third-party reports, a presentation to the Cape Girardeau Chamber of Commerce, the Aug. 5 city council meeting and previous reporting in the Southeast Missourian.

The problems

Capacity

For various reasons, water capacity has become an issue as it relates to the growing demand for water and emerging system limitations. The system has a 10.3 million gallon-per-day production capacity. The primary plant at Cape Rock has a 7.5 million gallons per day capacity; The Ramsey Branch plant has a capacity of 2.8 million gallons per day. Peak demand is approaching more than the city can produce. This could lead to water preservation measures.

Increased demand

From 2015 through 2018, Cape Girardeau, the peak daily water use was approximately 7.5 to 8 million gallons. In 2022 and 2023, that usage increased to 9.69 and 9.68 million gallons. The number of days the backup water treatment plant is needed is growing as well.

Changing water source

The chemical makeup of the water source drawn from Cape Girardeau’s wells has changed. The cause is undiagnosed, though officials are waiting for study results. The water composition is eating away at the chlorine used to sanitize the water. This has the effect of limiting capacity.

Treatment problems

The city is having issues with inconsistent iron and arsenic levels, and occasional issues with nitrates, linked to a condition known as blue baby syndrome. The city produces safe water, but it takes more to treat the water, especially with the source water changing. When the nitrates get too high, the water treatment staff must drain large tanks, which can cause capacity problems.

Aging system

The water treatment facility is 91 years old, though it has had many upgrades over the years. Corroded pipes are limiting the lime feed process, which requires the most man hours in the operation. The water distribution system includes 330 miles of water mains, 2,500 fire hydrants, seven pump stations, 12 storage tanks and two water treatment plants. Some of the worst pipes date back to the WWI and WWII era.

Deferred maintenance

City officials have said recently that former city officials kept water rates as low as possible for customers, and did not raise them high enough to establish reserves to handle the necessary upgrades. The water system is paid for through an “enterprise fund,” meaning fees pay for the service. It does not tap into regular tax revenue. The city was able to tap into $9 million in reserves to handle the most urgent needs. An entire system upgrade will cost $120 million.

City charter requirement

The Cape Girardeau city charter prevents the city from raising fees more than 5% in a given year.

Solutions

Large scale plan

The city has put aside about $9.2 million to address short-term problems but will need an extra $11 million to finish the short-term list. Five projects are in the works to upgrade a filter gallery, lime feed, corrosion control, chemical feed and expansion. By 2032, officials anticipate water system needs totaling $56.5 million. After 2033, an additional estimated $62 million will be required to replace water mains and add capacity.

Ballot rate increase

The city is asking voters to approve a rate increase of more than 5%, as outlined in the city charter. A majority yes vote would allow the city to bypass the 5% requirement for one year. After that, city officials expect that they will not need to go to voters again for another 5% increase for the foreseeable future.

Rate facts

How high are the current rates?

Cape Girardeau’s current rates are below the national, state and regional averages. The water bills for Missouri cities of at least 1,000 people rank in the lowest 25%. The current rate is less than Sikeston, Poplar Bluff, Perryville and Jackson.

Too low for grants

The city’s national average affordability index for water is 0.76%, far lower than the national number of 1.0%. This means a Cape Girardeau water customer making the median household income spends .76% of the household income on the water bill. Grant funding is unlikely until rates exceed the 1.0% threshold.

Proposed rates

The monthly minimum charge for most residential users with a ⅝ inch meter will increase from $10.37 monthly to $17.45. The cubic-foot usage rate of water would also change. Currently, customers pay $3.151 per hundred cubic feet of water up to 6,000 cubic feet of water, and then $2.428 per hundred cubic feet of water above that amount. Under the proposal, the price would change to $3.96 per hundred cubic feet of water up to 7,000 cubic feet of water, and $3.05 per hundred cubic feet of water above that amount. Prices change for customers with larger meters, but ⅝ inch is the most common in the city.

What would the increase do to water bills?

The average Cape Girardeau residential water bill would increase by $11.03 per month, according to estimates provided by a firm that specializes in water rates. Ninety-three percent of customers would see an increase of less than $14. The largest cohort, involving 4,377 customers, would see an increase of about $9.28. In Cape Girardeau, four outlier high-water residential users could see an increase of as much as $380.

How would commercial users be affected?

Ninety-two percent of the city’s 2,300 commercial customers would see an average monthly increase from $8.50 to $41.50 per month. Of those, 1,600 fall into the $8.50 range. In total, based on current usage, the city estimates all commercial properties in Cape Girardeau will pay $6,396 more per month under the proposed rates.

What about high commercial users?

The city’s three highest commercial outlier water users would face increases of $1,177, $1,297 and $1,708 per month. This means that approximately 65% of the commercial revenue increase would come from the top 0.1% of the commercial customers.