Voters inside the Macon city limits will decide whether the city may issue up to $80 million in revenue bonds to rebuild its water and sewer plants. The question appears only on ballots for city residents.
The bonds would be repaid solely from the net revenue of the city’s combined water and sewer system, meaning from customers’ bills, not from property taxes. Macon Municipal Utilities says rates would rise in steps over the next several years. At the final step, a household using 4,000 gallons a month would pay about $53 more each month: $18.42 for water and $34.24 for sewer. A commercial customer using 100,000 gallons would pay about $606 more, and an industrial customer using 1.5 million gallons about $8,378 more.
MMU attributes $50 million to the water plant and $30 million to the sewer plant, based on estimates from two engineering firms. The water plant dates to 1966; a basin liner added in 1997 is failing, and the plant runs at capacity during peak summer demand. The sewer plant dates to 1960; its settling basin is corroded, and its trickling filter concrete is deteriorating. MMU says the plant’s discharge does not meet state standards for pollutants including ammonia and phosphorus, and it expects a new state permit with tighter limits within the next year.
The $80 million is a ceiling. MMU and the council say approval does not create debt by itself; the council would approve actual bond issues in phases as engineering and construction proceed. Voter approval lets the city apply for the state’s revolving loan fund, which the Missouri Department of Natural Resources targets at about 30% of the market interest rate. MMU estimates that difference would save about $81 million over 30 years compared with a market-rate loan. The city is on the department’s current fundable list, and MMU says delay could force it to reapply.
The City Council voted 7-0 on Aug. 24 to call the election. Because the water and sewer systems have operated separately, the ballot refers to a combined system; the city attorney advised the council it could formally combine them by ordinance before the vote.
Supporters, including MMU and the council, say the plants are near the end of their lives, that state discharge violations could bring fines or a ban on new sewer connections, and that low-interest state financing is available only with voter approval.
Opponents and skeptics point to the size of the rate increases, especially for households on fixed incomes, and to unanswered questions about how changes in large customers’ use, such as ConAgra and the Macon County Public Water Supply District, would shift costs to other ratepayers. MMU’s own bond page lists a $24.6 million sewer figure that differs from the $30 million in its breakdown.
A simple majority of Macon voters casting ballots on the question is needed to pass it.
ON THE BALLOT
Shall the City of Macon, Missouri issue its combined waterworks and sewerage system revenue bonds in the amount not to exceed eighty million dollars $80,000,000 for the purpose of acquiring, constructing, extending, and improving its combined waterworks and sewerage system, including acquiring any necessary land and rights of way, 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 net revenues derived by the City from the operation of its combined waterworks and sewerage system, including all future extensions and improvements thereto?
A YES VOTE authorizes up to $80 million in revenue bonds for water and sewer plant work, repaid from utility revenue.
A NO VOTE denies the borrowing authority. MMU says the plant needs would remain and financing would likely cost more later.
COST TO CUSTOMERS: About $53 a month more at 4,000 gallons once increases are complete. No property tax.
WHO VOTES: Registered voters inside the Macon city limits.