HANNIBAL, MO. -- (Hannibal Courier Post) Few things cost the same today as they did in 1980. On Tuesday night, on a 6-1 vote the Hannibal City Council gave first reading to three bills which would see the city¹s building, electrical and plumbing fees increased for the first time since December 1980.

Currently, the city charges 10 cents per square foot for a building permit fee. Under the proposal brought forward by City Manager Jeff LaGarce, the building permit fees would rise to 25 cents per square foot. It is estimated the change will generate approximately $60,000 in additional revenue.

According to LaGarce, the permits to construct a 1,500 square foot home would increase from $425 to $755.

"We do not feel this additional fee will deter a home from being built; not when the fee levels of other cities are considered," wrote the city manager in a memo to the council.

The building permit fees for a 1,500 square foot home in other communities are: Ferguson, $779; Troy, $962; and Quincy, Ill., $1,254.

Raising the permit fees was proposed a little over a year ago by the city¹s Financial Task Force.

"The Task Force had no intention of pricing new development out of Hannibal¹s market," said LaGarce, noting that even with the proposed changes the city will remain on the ³lower end of the municipal (fee rate) spectrum. And when compared against potential cuts in services, this recommendation appears sound."

Councilman Jeff Lyng, who voted against the proposal, voiced reservations about making such a dramatic rate change, rather than increasing the fees by smaller increments over time. He also inquired about the possible budget cuts that the fee hikes would offset.

LaGarce suggested that future budget cuts could still be necessary even if the permit fees are increased.

In other business: First reading was given a bill amending city bid limits to $4,145 for purchases of personal property; $11,200 for payment of repairs on buildings and light equipment; $24,640 for repairs on heavy equipment or for construction; and $5,045 for service contracts. The rate changes represent a 1.5 percent increase.

Revisions to the clerk¹s 2011 budget, totaling $13,785, were approved. According to Finance Director Doug Warren, "the numbers which we worked with (during last spring budget sessions) and intended for the final printed budget were somehow dropped and the printed budget reverted to numbers which had not been referred to."

A lease agreement was approved for a new Kyocera copier for the Department of Public Works. The monthly lease payment for the new copier will be $108.47 for 60 months with a $1 purchase option at the end of the lease. The DPW budgets $1,500 a year for copier lease and equipment maintenance.

A resolution was OK¹d executing a Transportation Enhancement Funds supplemental agreement between the city and Missouri Highways and Transportation Commission for $100,000 for the Main Street sidewalk project.

Approval was given to waive bid limit requirements regarding the purchase of equipment and supplies necessary for new Hannibal welcome signs from Barbizon Lighting Company. According to the proposal given the council, 50 percent of the total invoice ($4,130) will be paid now and the other 50 percent in the spring once all the equipment has been installed and tested.

Bob Stevenson, general manager for the Board of Public Works, provided the council with an update on the Prairie State Energy Campus project, which the city owns a share in. According to Stevenson, the project will represent a financial drain on the BPW¹s budget for the next three years as costs for the new plant are absorbed. However, in the long-term Stevenson says owning a share in the facility will prove beneficial to the city.

Second and final reading was given a bill amending the agreement between the city and Missouri Highways and Transportation Commission regarding the project completion date of the airport terminal building. The new date is Dec. 31, 2011.

The following appointments were approved: David Jackson, reappointed for a term to expire in December, 2014, to the Real Property Redevelopment Tax Increment Financing Commission; Frank Salter, reappointed for a term to expire in January, 2014, to the Landmarks and Monument Board; and Al Pabst, reappointed for a term to expire in February, 2013, to the MU Extension Council.