Peaceful Valley residents only will decide $5 million sewer revenue bond question

By Dave Marner, Managing Editor
Posted 5/28/20

Only registered voters of Peaceful Valley will have the chance to decide the fate of a $5 million sewer revenue bond question on the rescheduled Municipal Election ballot on June 2.

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Peaceful Valley residents only will decide $5 million sewer revenue bond question

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Only registered voters of Peaceful Valley will have the chance to decide the fate of a $5 million sewer revenue bond question on the rescheduled Municipal Election ballot on June 2.

Gasconade County Clerk Lesa Lietzow said a simply majority is needed for approval on the question which asks members of the Public Water Supply District No. 1 to authorize issuing revenue bonds to upgrade the sanitary sewer system of the lake community. Revenue from operations of the sewer system will be the sole source of income to repay the principal and interest on the bonds.

Lietzow said there are 214 registered voters in the lake community. Landowners who do not reside in the community will not have a vote on the question.

“You vote from where you live” and keep your permanent address, said Lietzow.

“Only a few people will be paying for the $5 million in (revenue) bonds,” said Lietzow. “That’s been a very common question asked. It’s the same with tax questions in a municipality. They (business owners) own property but live outside the town. It may affect them but they can’t vote on it unless they’re a resident of the municipality.”

Upgrades to the sewer system have been mandated by the Department of Natural Resources.

“It’s pretty black-and-white. Here’s what we need,” said Lietzow about her understanding of the ballot question and bond needs for the project. “It’s not a fluff piece.”

The county commission donated five hours of time allocated to the county by Meramec Regional Planning Commission for professional services related to the project.

Members of the lake’s homeowners association were scheduled to gather at 7 p.m. Tuesday for an informational meeting on the revenue bond vote.

Mike Garlock, president of the public water supply district at the lake, said the proposal includes construction of a wastewater treatment plan to replace their single cell lagoon. The Environmental Protection Agency and Missouri Department of Natural Resources have called for the elimination of these outdated lagoons.

If the revenue bond is approved, Garlock said the new $2.6 million facility would be constructed and in operation by 2023.

“The single cell is being replaced under EPA mandates,” said Garlock. “ A new wastewater treatment plant will be constructed by 2023. The footprint will be different but it will be located in the confines of the small area behind the dam. Fortunately, this will not require land acquisition.”

Approval of the revenue bond question will allow the voter-approved district to apply for long-term, low-interest loans and access to grants which could fund up to approximately 45 percent of the project’s costs.

Lake residents formed a public water supply district several years ago by vote which allowed them to operate without oversight from the Missouri Public Service Commission.

The PSC had regulatory oversight of the community’s water and sewer rates which, at the time, limited the homeowners from raising rates to pay for needed infrastructure improvements to upgrade their 50-year-old system.

There was a “fairly significant” rate increase approved previously but Garlock said much of that additional revenue went for mapping of the system, smoke testing, inspections and repairs and maintenance on the existing system.

“If we get the full grant money we’re applying for, our rate increase should be insignificant,” he said.

Or, as the district’s officers noted in a letter to residents, their rates will increase considerably if the revenue bond question fails and they are required to obtain commercial loans at higher rates for the mandated improvements.

According to the GCPWSD No. 1 board, current USDA rates for these project loans are between 1.6 to 2.2 percent with payments over 35 years. If the revenue bond fails, PWSD No. 1 will also not be eligible for the Community Development Block Grants and USDA grants which could cover nearly half of the estimated $2.6 million cost.

Revenue bond funding above the cost of the project could be used for making repairs in case of a catastrophic failure in the sewer system, the board noted, considering the line runs under the lake to the lagoon. If the full amount is not needed, it will not be borrowed. Voting is from 6 a.m. to 7 p.m. Tuesday, June 2.