Kinder: Why Cape's water rate vote is crucial for the city's future

There is an extremely important local issue on the Nov. 5 ballot that cannot be overlooked amongst all the state and federal ballot issues. That issue, of course, is the water-rate increase we must consider to provide for much-needed upgrades and capacity improvements in the city’s water system.

If you are reading this, you have probably also read previous columns of mine on the topic and have read the extensive coverage this newspaper has provided on the topic as well. I would like to thank the Southeast Missourian for all the information it has shared on the topic for our citizens. It is a big story to tell, with many points to consider, and our local media has been doing its part for many months to help bring education to the public on all the related issues.

Cape’s water treatment 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 our community.

We are in the position now of needing to make large investments, beyond the annual maintenance levels of improvements. The city is able to make an initial outlay of $9 million in needed upgrades right away by using reserve funds. Phase 2 of improvements over the next eight years will cost $56 million, and will need these rate increases to assist in funding. Phase 3, beginning in 2032 and costing an additional $60 million, would continue needed improvements to the plant and in deteriorating water mains throughout the city. Phase 3 will also need those water-rate increases, as well as additional funding sources.

Renovation plan and financing needed

​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 the water quality and quantity issues. That study concluded 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).

• Among the city’s 330-plus miles of water lines, many date back to the 1890–1940 time frame, and need replacement very soon.

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 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 ballot language for this initiative 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?"

The proposed water-rate increase would put the average monthly bill here in Cape at $43.93, which still falls under the state average. You can go to the city’s website home page at cityofcape.org and find much more information, including a tool to calculate potential new water bills, and much more information about our water system in general. An important bit of data to know is that 89% of all Cape water customers (including both residential and commercial) will pay under $14 extra per month with this rate increase.

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 for everything. We have enjoyed a low cost of water here for a long time, but large-scale investments in the infrastructure are now needed.

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, and I urge our citizens to VOTE YES on this vitally important investment for our community.

Stacy Kinder is the mayor of Cape Girardeau.