By Derek Spellman

dspellman@joplinglobe.com

NEOSHO, Mo. — The Neosho City Council in two weeks should decide whether to call an August election on a measure that would allow the city to take out $8.5 million worth of low-interest loans for sewer projects, officials said Wednesday.

City staff members are recommending that officials pursue a program offered by the state Revolving Loan Fund to spare Neosho from higher interest rates, said City Manager Jan Blase. A proposal detailing the work that needs to be done and the issues that the projects would address was presented to the council on Tuesday night by E.T. Archer Corp., an engineering firm based in Lee’s Summit.

That presentation called for the installation of new, wider sewer lines to replace aging infrastructure, and for construction of a peak-flow holding basin for a system that officials say often is overwhelmed by the volume of sewage it needs to treat. The council is expected to vote at its meeting April 15 on whether to pose the issue to voters.

Estimates from E.T. Archer project that the measure, if approved, would result in an increase of about $11.67 per month in the average household’s sewer bill. Under the plan, the city would take out loans through the state Revolving Loan Fund at an interest rate of 2 percent.

The average bill now is between $8 and $9 per month, according to Bob Blackwood, city finance director.

Blase touted the Revolving Loan Fund option because the average household would see a monthly rate increase of about $14.52 if the city had to use lease-purchase financing in the private sector. That option, he said, would carry a 5.5 percent interest rate.

“It has to be done,” Blase said of the projects. “I think everyone realizes that we don’t have a choice, that it (the sewer system) has to be fixed.”

The State Revolving Loan measure would require a simple majority for passage in August, Blase said. The city would issue revenue bonds for the work under the program.

City officials said one problem with the current sewer infrastructure is that it is old and has not been upgraded in past years to keep pace with the city’s growth and the volume of sewage now generated.

The largest component of the pending ballot proposal is a $2.648 million peak-flow holding basin, where sewage would temporarily be kept so that sewage would flow into the plant at a rate that would accommodate the treatment cycle.

Another problem facing the current system is groundwater seeping into sewer mains during rains, enlarging the total volume of water beyond what the city sewer system can handle.

“That’s what is wrong,” Blase said. “It is not supposed to have storm water in it.”

Part of the loan would be used to finance work identifying where the storm water is infiltrating the sewer system.