Auxvasse voters go to the polls on April 3 to decide whether to authorize the city to issue up to $5 million in bonds "for the purpose of constructing, furnishing and equipping improvements to the city's combined waterworks and sewerage system."
A joint statement issued Monday by Auxvasse Mayor Kevin Phares and members of the Board of Aldermen stated an effort will be made to minimize the cost of the waterworks and sewerage system projects.
The city already has been notified that it will receive a $208,000 grant from the Missouri Department of Natural Resources for improvements to its waterworks system, which will lower the city's costs for improvements.
The city intends to make applications 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 is accomplished through authorization to issue bonds.
Although the ballot proposal would authorize the city to issue up to $5 million in bonds, the amount of bonds issued will be based on what is needed to successfully complete the proposed improvements. If not all of the $5 million is needed, the city will not issue all of the bonds.
Residents are not and will not be subject to any debt expense for bonds that are authorized but not issued.
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. It is the goal of the city to provide customers with affordable waterworks and sewerage systems.
If the bond ballot issue is approved by voters, the city will begin required improvements using the grant money received from the state and will continue to seek grants and low-interest loans to minimize costs.