CITY SERVICE FEES MAY INCREASE

Cape Girardeau residents likely will see increased fees for city services and programs over the next several years.

The city administrative staff told city council members Monday that the fee increases are needed to make such programs more self-sufficient and less reliant on subsidies from the city's general tax funds.

The council and city staff met Monday in a special study session to consider the proposed 1992-1997 capital improvements plan. The city would spend nearly $22.6 million on capital improvements projects over the next five fiscal years under the scaled-back proposal.

The five-year plan proposed last year had a budget of $34.5 million, but was amended this year to reflect reduced revenue estimates and the exclusion of "speculative" projects that would require voter approval.

Assistant City Manager Al Stoverink presented a report that revealed, program by program, last year's costs and revenues to show the extent that services were subsidized from general fund tax revenues.

Parks and recreation programs and services cost $1.72 million but generate only about $500,000 in revenue, he said. The balance of the costs are funded with general tax funds.

He said one area the city staff plans to recommend changes in is the fees charged for use of Central and Capaha pools. Current fees for the pools are 50 cents for children and $1 for adults in the summer and 75 cents and $1.25, respectively, for use of Central Pool in the winter.

But Stoverink said many people use the pools for free. "Last year there were over 30,000 admissions free of charge at the two pools," he said.

The free admissions stem from city recreation swim programs, practice by swimming teams and children's swimming lessons, Stoverink said.

"We honestly think we can increase revenue by 50 percent or double it within a year," by raising fees and charging those who don't pay now, he added.

Public works department programs cost $6.53 million and generate primarily through trash fees $3.81 million, he said.

Also, developmental services, which includes the city's planning, engineering and inspection services, cost $838,000 annually and generate about $305,000. Stoverink said public safety has a combined budget of $5.5 million, with revenue totalling less than $150,000.

City Manager J. Ronald Fischer said that it's important to examine various programs' costs and revenue in order to address flat tax revenues.

"There's no reason to think we won't come in within our budget this year, but with flat income, we have to find other sources of income," he said.

Stoverink said: "The only way to address these costs is either by raising fees or cutting back on programs."

One of the first casualties when cities look to cut costs is capital improvement budgets, and Cape Girardeau is no exception. Stoverink said that each of the categories in the capital improvements budget has been cut to reflect lower revenue estimates over the next five years.

General fund revenues for capital improvements were reduced from $962,000 in last year's five-year plan to $425,000 in the new plan.

Several transportation and environmental projects were dropped from the plan this year and placed on an "unfunded needs" list.

Despite the cuts, Mayor Gene Rhodes said he didn't see how the city would pay for the projects in the plan.

"There's a bunch of money in there, and we're just not financially in good enough shape to do this," he said. "You've got to come up with the money somehow."

But Stoverink said the only alternative to such planning is "standing still."

"I'm for planning," said Rhodes. "But how are you going to pay for it?"

Stoverink replied: "We're going to issue debt; we're going to pay the debt off with special assessments; we're going to issue more debt; and we're going to raise fees."

City Councilman David Barklage said he agreed with the staff's recommendation to increase fees and charges for city programs and services.

"I think one of the chief challenges in the budget for the next several years is getting the people to realize the relation between fees and services," he said.