SCOTT CITY -- A dispute between the Scott City Council and a group of rural residents over the rates for hooking up to the city's water and sewer systems might be flaring back up.

The council passed an ordinance Monday night at its regular meeting reducing the hook-up cost for rural water users from $2,500 to $500. That did not satisfy Orley and Betty Jackson, who have been in discussion with the council over rates for the last four months.

Betty Jackson said council members told her they would reduce the rate to $250. Orley Jackson said it was time to bring suit against the city to get the matter settled quickly.

"They've just been putting us off and putting us off," he said. The Jacksons have put on hold a development project on the outskirts of Scott City until the matter is resolved.

Council member J.T. Gulley, who was acting as mayor pro tem, told the Jacksons the council never agreed to a rate and had discussed a number of options before settling on $500.

The rate for sewage hook-up remains at $2,500. Council member Gary Miller said it costs too much to run sewer lines to rural residences for the commission to consider reducing that rate.

A related ordinance passed Monday night requires rural water users to agree to annexation when hooking up to city water if their property borders the city limits. Miller said the annexations would not be automatic but at the council's discretion.

The annexation agreement will be part of the contract rural water users sign when hooking up to city water.

In other city business:

-- The city renewed its contract with Blue Cross/Blue Shield for health insurance on city employees. The agreement costs $149.39 per month per employee, and employees have the option of contracting with the insurance company for additional coverage.

The city also agreed to a contract for worker's compensation insurance. The package, which is through Missouri Rural Services W.E. Walker Co., costs the city $28,401 a year for city employees.

-- Scott City Police Chief Danny Clubb and Public Works Director John Rogers were granted annual salary increases that the council said were skipped at previous raise periods.

The 2.75 percent raises were to take effect Monday.

-- The council accepted the resignation of Bill Barnett from the Police Board. Barnett is running unopposed for Norman Brant's City Council seat and must resign from the board before he is elected to the council.

-- Bootheel Regional Planning is preparing a new city map that updates the city zoning. The map, to cost the city $4,260, will be stored on computer disc and the council can update it when zoning changes are made. The changes can be completed within a few days.