CITY COUNCIL CONSIDERS $26.7 MILLION BUDGET PROPOSAL

Cape Girardeau will operate under a $26.7 million budget during the upcoming fiscal year if a proposed budget is adopted.

The City Council met for a special study session Wednesday to consider the proposal, which covers July 1 through June 30, 1997.

It features a 2.74 percent increase in operating expenses and a 20 percent drop in capital expenditures over last year, said John Richbourg, city finance director. The budget also reflects a 1-cent tax-levy increase for both the general fund and health fund, which helps fund health-ordinance enforcement.

Under the budget, there would be a 5 percent increase in park, recreation and golf fees effective July 1, and a 5 percent water-rate increase effective Jan. 1.

"The budget is balanced," Richbourg said. "We're not where we would like to be in our capital outlays ($23.8 million), and we will have to watch our water fund."

He said the solid-waste fund is vulnerable to the amount of waste brought in by private haulers and processed at a fee. If the volume doesn't meet predictions, some proposed equipment purchases may have to be dropped.

Councilman Melvin Gateley said he wasn't satisfied with the city's proposed payroll plan. The budget for next year includes a 1 percent general increase for all employees, effective July 1, and merit increases of 2-4 percent on their employment anniversary dates.

They also are scheduled to receive a $250 lump-sum bonus.

Still, Gateley said, it may not be enough.

"Material from the Missouri Municipal League shows that Cape Girardeau is at the bottom of the totem pole compared to other cities with the same population," he said. "We're $1,000 to $4,000 under, and I think we can do better than that."

Even if a higher increase can't be budgeted this fiscal year, Gateley said, it should be discussed.

City Manager Michael G. Miller said the council must consider that a pay raise isn't a one-time expense; once it is built into the budget it must be maintained through the following years.

Mayor Al Spradling agreed.

"Frankly, we can't just give them an increase and say we have the money, because we don't have the money for it," he said. "We had other unbudgeted items to deal with."

The city's salary committee will come up with a proposal by September. At that time, Spradling said, officials will know more about potential funds that could be used for salary increases.