NewsJune 1, 1992
The Cape Girardeau City Council tonight will consider whether to increase sewer and solid waste fees in adopting the proposed city operating budget. Last week, some council members said they were troubled by the fee hikes, particularly because many residents have complained in the past year about the city's trash collection and recycling efforts...

The Cape Girardeau City Council tonight will consider whether to increase sewer and solid waste fees in adopting the proposed city operating budget.

Last week, some council members said they were troubled by the fee hikes, particularly because many residents have complained in the past year about the city's trash collection and recycling efforts.

The fee hikes will be considered as separate items from the overall budget, which will be the subject of a public hearing at tonight's council meeting.

Under the fee proposal recommended by the city staff, the monthly minimum sewer charge would increase from $2.20 to $3.46 per customer, and the per-unit cost would increase from 83 to 97 cents.

In a letter to the council, Assistant City Manager Al Stoverink said that based on typical water consumption, the average residential sewer bill will increase $2.19 from $7.73 per month to $9.92.

"The amount of change will vary, however, between low-usage customers and high-usage customers," he added.

Under the staff proposal, the residential trash service charge would rise from $8.90 to $10.54, and transfer station fees would go from $22.50 to $25 per ton of waste. Wednesday bulk service and lugger service rates wouldn't change, Stoverink said.

He said there are a number of reasons the fee hikes are needed.

Earlier this year Stoverink projected an 11.1 percent revenue deficit in the city's solid waste fund and a 17.4 percent deficit in the sewer fund.

In his letter to the council, Stoverink said the sewer fee increase is needed to offset the elimination of a $95,000 annual subsidy from the city's general fund; elimination of a $190,000 annual contract with BioKyowa for sludge removal; an increase of $170,000 in interest expense; and the addition of $182,000 annually in sewerage maintenance.

Cape Girardeau already has relatively high sewer fees compared to other cities in the immediate area.

According to a city staff analysis of sewer fees based on average use, Cape Girardeau residents would pay $9.92 under the new rate, which compares to $4.58 in Sikeston, $6.66 in Jackson, and $8.66 in Poplar Bluff.

The city's basic sewer rate was last raised in July 1990, and the current trash fees were set in March 1989.

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Stoverink said the trash fee hike is necessary in large part because of new regulations set out in a the solid waste law known as Senate Bill 530. The law created the need for recycling programs and yard waste separation and composting.

Other factors affecting solid waste costs include increased landfill disposal charges and a new state surcharge of $35,000 a year to the city.

"The need to implement fee increases are primarily a result of less general tax dollars available for enterprise operations and the imposition of new mandates from the federal and state governments with little sharing in the cost," Stoverink said in his council letter.

"Daily operating costs have been kept well within the rate of inflation outside of the impacts of these mandates."

The proposed budget also includes a 3 percent increase in water rates. Stoverink said last week that the combined water, solid waste and sewer fee increases would total about $4 monthly for the average Cape Girardeau household.

The city staff also has recommended that a citizen task force be formed to study various methods of billing residents for their trash service based on volume. The task force also would study the impact of a regional solid waste district on local recycling and solid waste operations and costs.

Also included in the 1992-93 budget proposal is a 3-cent property tax hike and increases in many of the city's recreation facilities and programs.

Recommended fee increases in the parks and recreation department is expected to generate an additional $95,000 for the general fund. That money would help offset a current city subsidy of almost $1 million for parks and recreation.

Earlier this year, city administration officials told the council that the city no longer will be able to fund programs and services solely with tax revenue generated from growth.

Subsequently, city department heads set out to trim their individual budgets, increase fees for some programs and impose fees in areas that now are free to the public.

Declining growth in sales tax revenue, which was at 7.4 percent in the 1988-89 fiscal year and now is less than 1 percent, has been blamed for revenue shortfalls in several budget categories.

In his letter to the council, Stoverink said the fee proposals reflect "a continuing trend toward a more business-like approach to municipal government, which is occurring all across the country.

"This is particularly true in terms of pricing the various services, which are the products of municipal government, based on the total cost and demand for delivery of those services," he said.

Stoverink said the fee changes result in more emphasis on containing costs and general taxes, improving the quality of city services and payment for programs based on use.

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