Cape faces decision on water system overhaul, rate increase

The city’s water treatment facility has been the topic of much discussion in recent months and for good reason. This 91-year-old facility has had numerous upgrades and renovations over the years, but the time has come for the city to launch a major overhaul of various components of the whole system, beginning at the intake of well water all the way to the distribution water lines throughout the city.

This system is what delivers clean water to every faucet in the city, so its importance cannot be overstated to the health and development of Cape Girardeau and each of its citizens.

History of water treatment in Cape Girardeau

In 1991, Cape voters approved (with a 77% yes vote) a revenue bond issue allowing the city to purchase the water system from Union Electric Company. Alliance Water Resources has been contracted to maintain and operate the city water treatment system since then.

Additionally, in 2020 the city council amended the Alliance contract to include subcontracted services for routine preventative maintenance and non-routine improvements of nine water tanks. The agreement extends through Dec. 31, 2032.

The entire scope of Alliance’s work in maintenance and operations (M&O) for the city’s drinking water infrastructure includes:

• M&O of two water treatment plants

• M&O of four alluvial wells

• M&O of eight pumping stations

• M&O of 390 miles of water main

• M&O of 18,000+ water meters

• Geographic Information System (GIS) services for all City departments

• Utility locates services (1-800-DIG-RITE) for all City-owned utilities

As described in the city council meeting on May 6, Alliance has conducted a lot of work over the years to keep our aging plant running up to speed, while water rates were also kept low. We are in the position now, however, of needing to make large investments to maintain the water quality we expect and need here.

Renovation plan and financing needed

Since 2011, various studies have been conducted by drilling companies, the Missouri Department of Natural Resources, and several engineering firms. The intent of all this was to guide the city in the best path forward in delivering quality fresh water, however that might look.

In 2019, the engineering consulting firm Crawford, Murphy and Tilley was hired to conduct an analysis of the entire system, from the wells to the water mains, and develop a plan for the city to address water quality and quantity issues. The conclusion of that study were that an entirely new plant would not be the best solution for Cape, based on numerous concepts:

• The current plant itself is stable, but the components and distribution system need renovations;

• Renovation instead of building an all-new plant will be much more cost efficient, by many millions of dollars;

• The water distribution hydraulics will be simplified by keeping the current plant;

• The current plant provides reliable access to both the ground sources (the current wells) and emergency raw water sources (the Mississippi River);

Based on those studies, the city’s plan for rehabilitation of the drinking water system includes three phases.

Phase 1 will cost $9 million and is to be completed by 2024-25. It would:

• Create lime system improvements — moving to a hydrated lime system that will combat changes in well water;

• Create filter pipe gallery improvements — needed to allow more water to move through the plant and filter out contaminants;

• Make SCADA system improvements — will create more efficient operations;

Phase 2 will cost a projected $56.5 million and is to be completed 2025-32. It would:

• Add a fourth clarifier to expand the plant 33% in capacity;

• Add four booster pump stations throughout the city;

• Begin water main improvements throughout the city;

Phase 3 will cost a projected $63.5 million and is to be completed 2033 and beyond. It would:

• Make additional improvements to the water plant;

• Continue water main improvements throughout the city;

Water rates

The water plant renovations in Phase 1 will be completed using reserve funding the city has created over the past few years, with no borrowing needed. Additionally, for the first time, the city commissioned a water rate study this year to analyze rates and to model financial scenarios that will fund the future water costs. This study was conducted by Carl Brown of Getting Great Rates LLC. Mr Brown has conducted over 325 rate studies, primarily in Missouri. The study reports that with rate increases, the city can build additional reserves and fully fund the water system for future years, all without incurring more debt.

Compare the city’s rates to those of other Missouri cities:

• Scott City: $31

• Cape Girardeau (current): $31.43

• Perryville: $38.83

• Jackson: $40.25

• Missouri Average: $45.00

• St Genevieve: $48.30

• St Louis: $48.80

The proposed water rate raise would put the average monthly bill here in Cape at $43.93, which still falls under the state average.

It is the city’s responsibility to set pricing policies for water that sufficiently support the day-to-day operational costs, the maintenance and repairs required, the fleet requirements, and the capital improvements (including plant expansion). To fund Phases 2 and 3 of the city plan, voter approval is needed to raise water rates to levels that will help support the needed improvements.

The city council is allowed to vote up to a 5% increase every year in city water rates, but even doing this every year will not create the funding needed to make the necessary improvements needed to the plant and distribution system. Any annual increase above 5% requires a simple majority approval by city voters.

A ballot initiative for water infrastructure

The city council will deliberate at the council meeting on Monday, Aug 5 on whether to put a ballot initiative on the Nov. 5 ballot, which would ask the community to vote to raise water rates to levels that will help pay for needed improvements. The proposed ballot to be considered on Aug 5 reads:

"Shall the City of Cape Girardeau raise water rates and fees for the purpose of funding necessary improvements and maintenance of the water system such that during the current fiscal year the increase exceeds five (5) percent and shall Section 29-213 of the Code of Ordinances of the City of Cape Girardeau, Missouri, be amended establishing new water rates and fees effective January 1, 2025, resulting, based on current usage, in an increase in the current fiscal year ranging between $8.19 and $13.89 per month for 89% of water customers?"

A single basic rate for water customers in the city does not exist — there is a sliding scale for both residential and commercial customers — therefore the ballot language cannot include a single number of what the rate increase will be.

No one on the city council or in the city administration likes to see higher taxes or rates. Our citizens don’t either. A low cost of living here is important to our community, especially during a period of inflated costs on everything. So while it’s hard to deliver tough news, part of my job as mayor is to help educate citizens on issues, as well as on the solutions to solve them. We have enjoyed a low cost of water here for a long time, but large-scale investments to the infrastructure are now needed.

Over the next three months, the city will continue to give citizens the information they need to make the decisions for their own household, and for our community. We have an aging water system that will not continue to produce the quality or quantity of water this city needs — for its households, businesses, schools, or hospitals and clinics — unless big renovations are made soon. The funding for these renovations can only be approved by the voters.

Stacy Kinder is the mayor of Cape Girardeau.