Cape Girardeau council approves first reading of 10% water-rate increase

The Cape Girardeau City Council on first reading approved an ordinance that will raise water fees by 10%, city staff said, with the increase taking effect in the first billing cycle of November 2025.

City staff said the change implements a voter-approved amendment to the city charter that increased the allowable annual cap on utility rate adjustments to 15%. "As a result, the city's receiving support from the citizens ... and through these water rate increases we're going to be able to establish water rates that will fund the need of water treatment plant improvements," said Lisa Mills, a city staff member who presented the ordinance.

The council and staff framed the increase as funding for repairs and upgrades to the water-treatment plant and distribution system. Mills told the council the 10% increase applies to water only; the council had already included a 5% utility-wide increase in the adopted fiscal-year budget, and the added 10% raises water to the 15% level authorized by voters. Mills said the increase will be reflected in the November 2025 billing cycle and that, on average for the first three tiers, customers would see "a couple dollars a month" more on typical bills.

Council members asked clarifying questions about scope and duration. Council discussion referenced the plan to use the increases for immediate needs at the plant and to address distribution system work, with staff noting the highest increases occur in the early years and drop thereafter. The council voted in favor of the first reading; councilmembers did not record individual roll-call votes on the transcript.

The ordinance will return for a required second reading before becoming final. The city has said the revenue will be earmarked for water-plant and distribution-system projects identified by staff.