Wastewater Systems Upgrade Bond Issue Information

Tuesday, February 6, 2024. There is only one polling location for this election, which is at the Pettis County Clerk Election Authority’s Office at 215 E. 5th St. in Sedalia.

There are two major problem areas these funds will be used to address:

• To replace the outdated technology and worn out North Wastewater Treatment Plant (As required by the State Department of Natural Resources); and
• When it rains, the amount of water moving through the system increases six-fold. With the current system, that rainwater passes into the sewer system and causes overflows throughout the city. Further, it adds unnecessary costs to treat rain water.

The state and federal regulations are imposed on all Sewer and Water systems to ensure the quality of our drinking water and to prevent sewage from contaminating ground water and streams. These improvements will help the city be in compliance and solve many of the ongoing problems residents have had with the current system.

Only registered voters who live within Sedalia city limits can vote.

For the upcoming Tuesday, February 6, 2024 election, eligibility to vote is restricted to registered voters residing within city limits. Those who live within the city limits are directly impacted by all the local services and infrastructure improvements provided by the City. It is a legal framework designed to ensure that decisions are made by those that are most directly impacted.

The unknown roads pictured are the roads on the Missouri State Fairgrounds.

“Shall the City of Sedalia, Missouri issue its sewer revenue bonds for $60,000,000 to acquire land and easements for its sewer system, and construct, renovate and improve its sewer system, including (A) the elimination and replacement of the current north wastewater treatment plant with new or expanded and upgrading other wastewater treatment plants to comply with increasing state and federal requirements and (B) sewer main improvements to reduce stormwater infiltration allowing for the reduction in the size of the replacement wastewater treatment plants needed and the reduction of expected operating costs?”

• * Yes
• * No

If you are in favor of the question, darken in the oval opposite “Yes”.

If you are opposed to the question, darken in the oval opposite “No”.

No. This is not a tax, it is merely authorization for the City to borrow the money to make these improvements. The State requires voter approval before borrowing from the funds they make available to municipalities for these projects.

The State maintains a pool of Federal Funds set aside specifically for these types of municipal projects. If authorized by the voters, the State will loan the money from this pool that is needed for the project in the form of “Revenue Bonds”. The bonds are then repaid over time from the revenues generated from the project. This fund is commonly referred to as the State Revolving Fund or abbreviated as SRF. Since this fund is funded with Federal dollars the interest rate is greatly reduced to only what it costs the State to administer the fund.

The bond must be passed to get the opportunity to apply for state funding. If the funding is approved, the interest rate would be lower than conventional financing. The current rate offered by the state is 2% for up to a 30-year obligation.

The passage of the bond doesn't mean sewer rates will automatically increase; however, it would mean making a much-needed investment in our sewer system that needs to be repaid to the state over time.

The City Council, which oversees the city's sewer and water departments, could determine rate changes are needed based on current revenues and the overall costs of the project. However, due to this low borrowing costs only available to municipal ran water and sewer utilities, any potential increase would be much lower than the alternatives.

What's important is that city officials believe this project is critically important because keeping our waters safe is essential to the health of every resident.

Investing in a new more modern system is a better plan than dealing with the ongoing costs and problems associated with maintaining the current system that will only get worse over time. Further, as mentioned earlier, we have to make improvements to meet the state and federal standards for treating sewage.

Compared to other cities, Sedalia’s sewer rates are about average. The city has been able to keep rates lower over the years even with small annual increases meant to cover day-to-day operating costs, which continue to go up each year. The city is not trying to make money on sewer service but is trying to make sure the money received covers the expenses of providing a sewer system.

If approved, these funds will be used to buy land and easements for the sewer system, as well as to construct, renovate, and improve the system. The specific improvements include converting the current North Wastewater Treatment Plant to a lift station, expanding the Central Wastewater Treatment Plant on Main Street to handle current needs, and making sewer main improvements to reduce the amount of water that passes into the sewer system from pipe defects.

It’s estimated the projects would take about two years, and there would be no interruption in service.

Yes, there are always other options, however this is by far the lowest cost option.

• The City could use other tax-exempt financing options that it has used in the past. Many of these options would not require voter approval. However, even with the tax-exempt status, the interest rate would be approximately double.
• We could sell the sewer system and leave it to the private markets to invest in the infrastructure and operations. However, they would be subject to the same state and federal requirements. Therefore, they would have to make the same improvements and they would not have this option for low cost borrowing. Further, they would only do this if they could get a return on investment in the form of profits. The City does not and will not charge more than the cost to operate the system.

Without these state funds, the city will not be able to make necessary upgrades and will consider selling the wastewater treatment plants to a private entity that will control the water/sewer rates.

While it is hard to predict how a private company might set the rates for Sedalia citizens, it may be helpful to know what happened to the surrounding communities of Otterville and Smithton after privatization. Smithton rates grew by around 300%, while Otterville saw an even larger increase of around 400% after privatization.

The city is not motivated by profits; the goal is to provide necessary and affordable services to its citizens.

A simple majority is needed to pass the issue.

The election will be held at the Pettis County Clerk Election Authority’s Office at 215 E. 5th St., Sedalia. No other polling locations will be open. Only voters who reside within the city limits, see attached map, will be allowed to vote on the February 6, 2024, election.

You can register to vote in the County Clerk’s office 215 E. 5th Street in downtown Sedalia. Eligible residents have until January 10, 2024, to register to vote in this election.

Yes, absentee ballots are currently available. Absentee voting must be postmarked by Monday, February 5, 2024.

Absentee ballots are available at the Pettis County Courthouse, County Clerk’s Office, at 215 E. 5th Street in downtown Sedalia.

From 6 am to 7 pm.

Questions may be emailed to Bond@Sedalia.com. We will do our best to respond to your question as soon as possible.