Cape Chamber board supports "yes" vote on water rate increase on November election ballot

Cape Girardeau Area Chamber of Commerce Board of Directors members have endorsed a proposal to raise Cape Girardeau water rates to fund water system infrastructure improvements.

The proposal is on the Tuesday, Nov. 5, ballot.

A letter from the group outlined four factors that led to the board's decision.

The four factors:

• The primary water system is running at capacity;
• The water distribution system is outdated and needs improvements;
• Water rates are "incredibly" low and limit the city's ability to make capital improvements to its system;
• The SEMO REDI Executive Committee has shared its support for the investment in infrastructure.

"Improving our water system is a critical part of strengthening Cape Girardeau: for community health, economic development, and business success," the letter states.

Mayor Stacy Kinder said in an email to the Southeast Missourian that an important aspect of the water system is the financial impact it has on local businesses.

"We are grateful to the Chamber of Commerce for recognizing the needs of the business community and for the public support for this initiative," Kinder states.

City Manager Ken Haskin said the Chamber clearly understands the urgency of the issue with the water system.

"We are grateful for all the support we have received," Haskin said in an email.

The city's water system has been an increasingly regular topic of concern for municipal officials in recent years. Water main breaks have become more frequent — with a handful coming in the past two weeks — and the city's water treatment plant has struggled with water sourcing and aging infrastructure. Officials have identified about $120 million in needed improvements and upgrades.

The ballot measure would raise rates about $8.19 to $13.89 per month for residential users, more for commercial customers.

The raised rates — which still would be below many municipal rates across the states — would allow the city to apply for state and federal grants that it is currently not eligible for because of the low rate structure.

Full text of chamber letter

Cape Girardeau Area Chamber of Commerce recommends a Yes Vote on City of Cape Girardeau Water Rate Increase.

Cape Chamber Members,

At the October 8th Board of Directors Meeting for the Cape Girardeau Area Chamber of Commerce, the majority of Board Members present voted to support a yes vote on the upcoming ballot question to increase water usage rates January 1, 2025. The Board of Directors did not consider this recommendation lightly. We feel that when the following key factors are considered, it is important to support this increase for the overall good of the business community in Cape Girardeau.

The City of Cape Girardeau Primary Water System is at Capacity: It is our understanding that the primary water treatment facility located on Cape Rock Road currently has daily treatment capacity of 7.5 million gallons, with the secondary Ramsey Branch Water Treatment Plant offering an additional daily treatment capacity of 2.8 million gallons. While this capacity can meet most daily demands, we are seeing increased use as the community and region continues to grow and there is a need to improve our overall capacity. If we want our community and region to continue to grow, having a water system that can support that growth is critical.

The Distribution System is outdated and needs significant improvements: Beyond the water treatment demands, the distribution system that is made up of miles of water mains and service lines throughout the community continues to age and become less dependable for long term use. Large main breaks create a disruption in water service, which can and has impacted local business’ ability to operate and can create added cost or disruptions to business operations. As the risk of these events increases with time, the impact on businesses will be felt more often. Investment in repair and replacement of the system is vital.

Water Rates in Cape Girardeau are incredibly low, limiting the ability for the city to make necessary capital improvements. While keeping utility rates low may seem positive overall, the long-term impact is the limited investment in system maintenance and upkeep we are now challenged to overcome. We recognize the proposed rate increase will be an added expense on the end users, with business and industry in Cape Girardeau receiving the largest total dollar increases in their bills when passed. We have balanced that cost concern with the reality that delayed action will only lead to even greater expense down the road and now is the time for us to act and invest in modernizing the system. While it would have been better for the city to address these issues earlier – rather than spending on other projects that were less important – putting this increase off now will only make things worse and more expensive in the future.

SEMO REDI Executive Committee shared their support for increased investment in infrastructure. As investors and members of the SEMO REDI organization, we also listened to the feedback and discussion about the role that infrastructure quality plays in recruitment of business and industry. They have shared the following statement related to the water rate increase proposal.

“At SEMO REDI, a core driving objective is to invest in our product. We believe the Region’s infrastructure investments should prioritize economic impact and anticipate the needs of industry sectors that will produce quality jobs, increased payrolls, and an expanded tax base. In alignment with this objective, SEMO REDI supports efforts by cities and counties in our region to ensure water systems are maintained and prepared for future economic growth.”

Our first strategic objective states that The Cape Chamber will DEPLOY STRATEGIES that support Business Growth and Sustainability for our members and the broader region. Preserving and improving our water system is critical to business growth and sustainability. The decision of the SEMO REDI Executive Committee to offer their support for a Yes vote on this ballot question helps confirm our decision as an organization. Improving our water system is a critical part of strengthening Cape Girardeau: for community health, economic development, and business success.

We encourage our members to Vote Yes on the proposed Water Rate increase in November and share the importance of this issue within their organizations.

Best Regards,

Alex Ogburn

Chair, Cape Chamber Board of Directors

Vice President, Population Health & Payer Strategies, Saint Francis Healthcare System