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Sewer Revenue Bond--Special Election
On August 8, 2023, Warrensburg residents will be asked to vote on the issuance of up to $22 million in sewer revenue bonds through the state revolving fund for upgrades and improvements to the east and west wastewater treatment plants. These bonds will be used to increase the treatment capacity of the plants and improve the quality of the water being discharged into the U.S. waterways. These upgrades and improvements are necessary to continue providing sewer to the residences and businesses in the city of Warrensburg.
The City owns, operates, and maintains a significant sanitary sewer system including two sewer treatment plants, approximately 118 miles of underground collection piping of varying materials, six lift stations, one pump station and a retired lagoon. Properly managed sanitary sewer infrastructure plays a vital role in ensuring the health, safety, and welfare of the community and the economic and financial success of the community.
Ballot Language
Shall the City of Warrensburg, Missouri issue its sewer revenue bonds in the amount of $22,000,000 for the purpose of acquiring easements or right-of-way, and acquiring, constructing, upgrading and improving its sewer system, including but not limited to upgrading, improving, and expanding the City’s two existing sewer treatment plants, with the payment of the principal of and interest on said revenue bonds, to be payable solely from the user fees and other revenues derived by the City from the operation of its sewer system, including all future extension and improvements thereto?
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Absentee voting begins at the Johnson County Clerk’s Office on June 27, 2023 and No Excuse Absentee Voting will begin July 25 and conclude August 7, 2023.
Election day is August 8, 2023. Since this is a special election, there will only be one polling location—Elks Lodge, 822 East Young Avenue, Warrensburg, MO.
Frequently Asked Questions
What are Sewer Revenue Bonds?
Sewer Revenue Bonds are issued to finance the construction and improvement of sanitary sewer facilities. Revenues to pay for the debt issue are derived from rates and fees which are based on usage of the sewer utility.
Sewer Revenue Bonds can only be used for pay for sewer-related facilities. They cannot be used for public safety operations or resurfacing streets.
How will the issuance of these bonds impact my sewer bill?
Sewer rates to pay for the revenue bonds are already in place. City Council approved increasing the sewer rates in fiscal year 2023 17.5% (effective April 1, 2023) with no increase in fiscal year 2024 and an anticipated 9% increase in fiscal year 2025.
In January 2023, a 5-year comprehensive rate study was prepared and presented to City Council. The financial models presented included the issuance of sewer revenue bonds for the plant upgrades and improvements in addition to having fund balance available for the retirement of the Enterprise Lift Station. The City conducts a sewer rate study every year, and a comprehensive sewer rate study every 5 years to ensure the fees for sewer are in alignment with the cost of providing the service.
A typical residential customer uses 4,500 gallons of water per month. In 2022, the monthly charge for a typical residential customer was $49. The same residence pays $53 in 2023 and 2024. The same residence will pay $56 in 2025, if the financial assumptions in the 2023 comprehensive rate study hold.
What will the bonds be used for?
The bonds will be used to add an additional Sequencing Batch Reactor (SBR) to the east and west plants. SBRs rely on mechanical, chemical, and biological processes to treat sanitary sewer influent (incoming water) that is then safe to be released back into the environment as effluent (outgoing water).
Why are the upgrades and improvements necessary?
The Missouri Department of Natural Resources (DNR) is authorized by the U.S. Environmental Protection Agency (EPA) to regulate the quality of the water discharged into the U.S. waterways. This includes the treatment capacity at each plant. Additionally, the EPA and DNR set limits for the amount of nutrients, such as ammonia and phosphates, that can be in the treated water is reintroduced in the Post Oak and Bear Creeks.
The east and west plants are expected to meet treatment capacity in 2025. There have been numerous occasions during peak flows in the last several years where both plants have reached or exceeded capacity. The limitations of allowable nutrients have also been tightened.
The last significant treatment capacity upgrades to the plants were in 2009. These upgrades are not unexpected or emergency repairs. Our community has grown over the last 15 years and is expected to continue growing. The City has taken steps to extend the life of the existing SBRs by lining collection pipes and adopting policies to limit excessive stormwater from getting into the sewer system through our inflow and infiltration program.
What happens if the issuance of sewer revenue bonds isn’t approved?
If the city exceeds capacity at either plant, the regulatory agencies can prohibit the City from growing or developing. The City would not be able to issue building or development permits for any new construction—residential, commercial or industrial. Economic development will come to a standstill.
The upgrades to the east and west sewer plants are a requirement. If the sewer revenue bonds are not approved by Warrensburg voters, the city will issue certificates of participation for the improvements. certificates of participation are basically a lease-financing agreement with a higher interest rate than sewer revenue bonds. The interest rate for sewer revenue bonds is anticipated to be 1-1.75% utilizing the state revolving fund financing tool. However, the interest rate for Certificates of Participation is anticipated to be greater than 2%, which is a significant difference when borrowing $22 million over 20 years.
If the City must issue certificates of participation instead of sewer revenue bonds, the sewer rates will have to increase more than the current fee structure presented to City Council in January 2023.
What is the ballot language?
Shall the City of Warrensburg, Missouri issue its sewer revenue bonds in the amount of $22,000,000 for the purpose of acquiring easements or right-of-way, and acquiring, constructing, upgrading and improving its sewer system, including but not limited to upgrading, improving, and expanding the City’s two existing sewer treatment plants, with the payment of the principal of and interest on said revenue bonds, to be payable solely from the user fees and other revenues derived by the City from the operation of its sewer system, including all future extension and improvements thereto?
How do I vote?
You must be registered to vote. If you aren’t registered to vote, you can download the Voter Registration Application at http://www.jococourthouse.com/voter_info.html. The deadline to register to vote in this election is July 12, 2023.
Absentee voting begins at the Johnson County Clerk’s Office on June 27, 2023 and No Excuse Absentee Voting will begin July 25 and conclude August 7, 2023.
Election day is August 8, 2023. Since this is a special election, there will only be one polling location—Elks Lodge, 822 East Young Avenue, Warrensburg, MO.