Fulton, MO 61° View Live Radar Mon H 82° L 65° Tue H 85° L 66° Wed H 88° L 67° Weather Sponsored By:

Auxvasse bond issue needed to avoid more rate increases

Auxvasse bond issue needed to avoid more rate increases

March 15th, 2012 in News

Auxvasse residents will face major hikes in water and sewer service rates if they reject a $5 million bond issue in the April 5 city election, Auxvasse Mayor Kevin Phares said Wednesday.

Phares said the city's water and sewerage systems "are in sad shape. We need major improvements to make them function properly."

Phares said recent water and sewer rate increases that were effective in January will be enough to finance pay off of the $5 million bonds sought for rebuilding the city's sewer and water systems. "We won't need any more increases in rates if the bond issue passes. But if it is rejected, we will have major new expenses just for patching up what we now have. That is going to be very expensive and not cost effective. It also will mean huge increases in sewer and water rates and we will have only patched-up systems," Phares said.

Phares said if the bond issue passes, the city has learned it will receive a $280,000 grant from the Missouri Department of Natural Resources to help pay for needed improvements.

Phares said the city also will be able to seek a low-interest loan to help pay part of the cost. He said the city is working with its consultant, Allstate Consultants of Columbia, to determine how much of a loan would be needed.