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** P R E S S   R E L E A S E **


On April 3, 2012, the citizens in Auxvasse, Missouri voted in favor of passing the bond issue listed below.  

 

Municipal Election

 April 3, 2012


OVERVIEW

To improve the quality of life for local residents and to further entice new economic development within the community, the 

City of Auxvasse needs to make improvements to its waterworks and sewerage systems.  Some of the improvements 

are being mandated by regulatory agencies.  If cities identified as in need of improvements do not comply with regulations, 

the matter could soon be moved to the jurisdiction of federal regulatory agencies and those communities could be subject 

to fines as high as $10,000 per day for each and every day a system is not in compliance.  The City has done all it can 

with available staff and resources to assure proper operation and maintenance of the system, but now must seek 

outside assistance.

 

WHAT ARE THE SPECIFIC PROBLEMS?

Sewerage System:

The Federal Environmental Protection Agency (EPA), through the Missouri Department of Natural Resources (MDNR) has issued a revised wastewater treatment operating permit to the City which requires the City to comply with more stringent discharge limits.  As a result of the more restrictive limits, the City needs to address the way it treats wastewater.  In addition, much of the sewerage collection system is susceptible to inflow and infiltration resulting in the City treating large flows of water that do not necessarily need treatment and/or causing sewerage to discharge into waterways and areas accessible to the public.

 

Water System:

The City’s existing Water System is comprised of several linear feet of undersized, deteriorated water mains that restrict water flow thereby causing pressure problems in the City and are highly susceptible to breaks which lead to interruption of water service and the possibility of infiltration of harmful bacteria.  In addition, the City receives its water from a single deep well.  Should something happen to the well, the City could feasibly be out of water for an extended period of time.

 

WHAT ARE THE PROPOSED IMPROVEMENTS?

The City has retained the services of Allstate Consultants, a professional engineering firm, to assist in identifying an economical solution that will provide long-term benefits for the City’s customers.  Based upon careful evaluation of the alternatives, it has been determined that the best solution for the City is a phased approach to addressing the City’s waterworks and sewerage system problems. In this manner, our system can be upgraded with the least amount of inconvenience to the residents of the community. 

 

Sewerage System:

In order to meet regulatory requirements, avoid violations (as well as to forgo quick fixes), the City has created a plan that contemplates both new construction needed now and future improvements.  First, the City proposes to make improvements

to the existing lagoon which will be designed to meet MDNR requirements as well as to allow for economical modifications to meet future regulatory requirements.   Second, the City’s plan provides for the future replacement and extension of several linear feet of sewer mains throughout the community.

 

Water System:

The City is proposing to upgrade the water distribution system.  Among the activities proposed is to replace the existing problematic waterlines, which are highly susceptible to breaks and leaks, as well as undersized water mains with new larger diameter water mains, install additional fire hydrants and loop portions of the system.  These improvements will increase water pressures throughout the City, enhance fire-fighting capability and mitigate chances of harmful bacteria from entering into the system. In addition, the City is proposing to install a new drinking water well in order to assure the City is supplied

with a reliable source of drinking water.

 

HOW WILL THE CITY FINANCE THE IMPROVEMENTS?

In order to address the deficiencies of the water works and sewerage system and minimize the financial burden on the

users, the City has and will continue to make application to various State and Federal funding agencies for

financial assistance in the form of grants and low-interest loans.  To be eligible for these grants and loans, the City 

must indicate its ability  to contribute to the cost of construction.  This indication is accomplished through the issuance

of bonds.  The amount of bonds issued will be based on what is needed to successfully complete the

proposed improvements. (To date, the City has been notified by MDNR that it is eligible to receive a grant in the amount

of $208,000 for improvements to the waterworks system.)

 

Residents are not (and will not be) subject to any debt expense for bonds that are authorized but not issued.

 

HOW WILL THE PROJECT AFFECT MONTHLY USER BILLS?

It is the goal of the City to provide the customers with affordable waterworks and sewerage systems.  It is the intent of the City to adjust user rates only if, and to the extent necessary, to provide for the proper maintenance and operations of the systems plus debt service as well as to comply with all state and federal regulations. The City will conduct a user rate analysis prior to issuing any bonds.  Once again, it is the goal of the City to provide the customers with affordable waterworks and sewerage systems.

 

WHAT HAPPENS IF THE BALLOT ISSUE IS SUCCESSFUL?

If the ballot issue is successful, the City will immediately commence with activities to make the required improvements and recommended improvements to waterworks and sewerage system.

 

WHAT HAPPENS IF THE BALLOT ISSUE FAILS?

If the ballot issue fails, the City will still be required to make improvements to the waterworks and sewerage systems but will be forced to dramatically increase user fees to address the cited deficiencies without the benefit of low-interest Federal and State funds.

 

In addition, should the City not make the required improvement, the City may be subject to fines. These fines can be as high as $10,000 per day for each and every day the City is not in compliance.

 

In addition, construction costs will continue to rise with each passing year.  Based upon recent trends, the availability of financial assistance from State and Federal programs looks to be decreasing - while the competition for these limited funds

 is on the rise.  With time, the risk of incurring regulatory fines for non-compliance will only increase.

 

In essence, the longer the City delays the inevitable, the more expensive the project will become.  (Because of recent efforts 

on the part of the City, MDNR has not yet submitted a “Notice of Violation” which could trigger fines.)

 

See sample ballot.


 

 

ON April, 3, 2012,

THE FOLLOWING QUESTION WILL APPEAR ON THE BALLOT

 

 

Shall the City of Auxvasse, Missouri, issue its combined waterworks and sewerage system revenue bonds in the amount of five million dollars ($5,000,000.00) for the purpose of constructing, furnishing and equipping improvements to the City’s combined waterworks and sewerage system, the cost of operation and maintenance of said system and the principal of and interest on said revenue bonds to be payable solely from the revenues derived by the City from the operation of its combined waterworks and sewerage system, including all future extensions and improvements thereto?

 

                                                                                                      YES        __

                                                                                                      

                                                                                                      NO          __

 

**IMPORTANT POINTS TO REMEMBER**

 

1)       Certain improvements are now required by the State.

 

 

2)       The passage of the proposed bond issue WILL NOT increase property taxes.


 

 

 

FOR FURTHER INFORMATION

PLEASE CONTACT:

Kevin Phares, Mayor

573-386-2599

 

Board Members

                                                       Mike Bertschinger          Mike Bickel

                                                       573-220-7320                573-386-5848

                               

                                                      Stephanie Leverett         Terry Walker

                                                      573-544-4295                 573-386-3537

 

Missy Hooks, City Clerk

Auxvasse City Hall

104 S. Main

Auxvasse, Missouri 65231

(573) 386-2227