Cape Girardeau officials explain August 5 ballot to raise annual water-rate cap from 5% to 15%

Mayor Kinder told the Cape Girardeau City Council that the August 5 ballot asks voters to amend the city charter to allow annual water-rate increases up to 15 percent, up from the current 5 percent cap.

The measure, Kinder said, would not automatically raise rates to 15 percent but would permit the city to do so if needed to fund an expansion of the water treatment system. "The ballot language states that our current city charter prohibits utility rates from being raised more than 5% in any given year," Kinder said. "The question for voters is shall this general limitation be amended from 5 to 15%?"

Council members and city staff described the proposal as part of a 10-year financing plan to fund phases 2 and 3 of the city's water master facility plan. Under the plan…