Recent criticism of Cape Girardeau's city council from residents angry over decisions to spend revenue from Isle Casino Cape Girardeau on projects instead of lowering utility bills prompted a response from officials Monday.

City manager Scott Meyer shared figures during Monday's study session with the council on increases in sewer and water bills, which were enacted in July 2011 after voters earlier in the year approved the city's plan to build a new wastewater treatment plant.

At the March 18 council meeting, council members John Voss and Trent Summers unsuccessfully attempted to have projects removed from a list to be funded with casino revenue in light of some residents' wishes that the city would evaluate and reduce utility bills.

Now, armed with information presented by Meyer and anticipating more to come during the council's annual retreat April 26, council members say they realize casino revenue can't be used to reduce bills after all.

"Keeping rates exactly as they were in 2011 really isn't an option for us," Voss said. "It would make some impact, but we can't keep them the same. I'm not sure that's good stewardship either, but I have had cries of 'it should be the same, you've got revenue,' but it's not the same landscape, and I want people to understand that."

Meyer told the council a $1 per month reduction for all customers would lessen the amount the city takes in by $204,000 per year. The total amount brought in by water and sewer bills is about $4.5 million annually, which exceeds the estimated $3 million per year generated for the city by the operation of the casino.

Voss said the city already has made commitments with the casino revenue, including sending some of the money into a riverfront development fund for downtown improvement projects and purchasing land to build a business park.

Eighty percent of voters passed the two propositions put forth by the city in April 2011 that formed the city's plan to generate $72 million to pay for a new wastewater treatment plant and sewer line improvements. The estimated average monthly increase told to voters in 2011 was $23. The city determined a new plant was needed when it had to bring the more than 50-year-old plant into compliance with state and federal standards for untreated wastewater. The plant continues to face problems with capacity.

Councilman Mark Lanzotti also pointed out that had bonding for the wastewater treatment plant been contingent on casino revenue, which is not considered permanent revenue to a bond issuer, the city would not have been able to see some of the savings realized with subsidized bonding.

Meyer gave 2012 figures that showed the average residential cost increase was $19.38, of which $17.87 is charged for sewer and the remainder for water. For commercial customers, the average was $79.97, of which $67.57 was for sewer and the remainder for water.

The city has ordered a rate study that should be complete by the time the council holds its retreat. Voss asked Meyer also to produce a list of rates in cities of comparable size for the council to review at the meeting. The rate study considers factors such as construction and operational costs estimates, overhead, labor and usage at the wastewater treatment plant, along with cash flow from capital improvement sales tax revenue.

The city has not raised utility prices to the full amount authorized by the corresponding ordinance. The flat-fee per month charged to sewer customers hasn't been set to the maximum level of $16 per month. It is set now at $13.19 per month. An additional $3 per month is charged per hundred cubic feet of usage. The rate for water usage has been raised the full amount allowed, to $3 from $1.35.

Voss said as the situation stands, the city "would have to consume 100 percent of all casino revenue every year to bring about no change in rate policy," from rates before they were raised in 2011.

Casino-funded projects approved by the council were split into two sets, the first of which was approved in February and included $906,000 for new playground equipment, equipping baseball fields in Arena Park with safety fencing, installing more emergency sirens throughout the city, lighting improvements along Main Street, sidewalk improvements, demolition of the old Convention and Visitors Bureau building at the corner of North Main Street and Broadway for use as a parking lot and a space-design survey of the police station. The second set, which the council gave its final approval to Monday, includes $714,000 for a parking lot overlay at the River Heritage Museum; a dog park, community garden and accelerated tree planting; improvement of city walking trails; fitness equipment; construction of downtown parking lots; replacement of a roof at the Fort D historical site; lighting improvements on Hopper Road; and the addition of scoreboards and bleachers for youth football fields. Voss and Summers were the only council members Monday who voted against approving the second set of projects.

Other business

During Monday's study session, the council also discussed possible changes to the city's charter, which would require the approval of voters. The changes would include allowing a person who previously has served two consecutive terms as a council member to be able to serve again after one year; allowing the council to call a special election in February or in June; and allowing the council to call a special election on certain ordinances at the earliest available date if there is not an available election date from 30 to 120 days after the date of the final council vote.

City officials say the amendments would clarify language and allow the council more flexibility with elections. The council asked city staff to monitor upcoming election dates for items that could be placed on future ballots so money could be saved when placing the proposed amendments alongside those items.

eragan@semissourian.com

388-3627

Pertinent address:

401 Independence St., Cape Girardeau, Mo.