Voters in the city of Trenton will decide in November on issuing $8 million in bonds to finance needed improvements to Trenton Municipal Utilities wastewater treatment plant.
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Voters in the city of Trenton will decide in November on issuing $8 million in bonds to finance needed improvements to Trenton Municipal Utilities wastewater treatment plant.
During a meeting over the noon hour Wednesday at city hall, the Board of Public Works voted to begin the application process for 20-year bonds from the Missouri State Revolving Fund. Once the application is approved, the issue would be placed on the November ballot.
The wastewater plant is facing new requirements from the Missouri Department of Natural Resources for ammonia limits and oil and grease discharge as well as the possibility of disinfection of discharge.
The bond interest rate was calculated at 2.50 percent, although an exact figure would not be known until the bonds are sold. Including financing costs, the total cost of the project would be $12,400,000 and would require a 67.35 percent increase in sewer rates to pay for the project.
The average residential sewage rate of $18 per month would rise to $24 or $25 per month under the proposed bond issue financing option.
Once the application is approved, a point value would be assigned to it relative to its importance compared with other projects around the state. Projects are then awarded funding based on their point values and available funds.
Other financing options included 20- and 29- year loans from the Missouri Association of Municipal Utilities with both variable and fixed interest rates. The only option with a lower total cost was a 20-year loan with a variable interest rate of 3.8 percent which amounted to $12,028,391.41. It would require a rate increase of 69.37 percent.
A 29-year variable loan at 4.272 percent interest from MAMU would require a 58.73 percent rate increase but would have a higher total cost of $14,208,117.42, according to figures provided by TMU Comptroller Kevin Kasinger.
Board members felt the bond issue was the lowest cost option for ratepayers and it will require a simple majority for passage. The MAMU loans would not require voter approval, but will be needed to finance the improvements if the bond issue does not pass. Board members also expressed concern about the direction of interest rates in the future as a reason for pursuing a bond election rather than the loan options.