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Tue, May 13 2008 

Published May 06, 2008 11:03 pm - NEOSHO, Mo. — The Neosho City Council on Tuesday night tentatively approved a ordinance calling for an August election on a measure that would allow the town to take out $8.5 million worth of low-interest loans for sewer projects.

Neosho panel gives tentative approval to ballot measure



By Derek Spellman

dspellman@joplinglobe.com

NEOSHO, Mo. — The Neosho City Council on Tuesday night tentatively approved a ordinance calling for an August election on a measure that would allow the town to take out $8.5 million worth of low-interest loans for sewer projects.

All three of the council members who were at the meeting voted in favor of the ordinance. Councilman Jeff Werneke was out of town on business. Councilwoman RoseMarie Carnes resigned earlier in the day and did not attend the meeting.

The ordinance will come before the council during its May 20 meeting for a second and third reading.

Voter approval of the proposed ballot measure would allow the city to pursue a program offered by the state’s revolving-loan fund to spare Neosho from higher interest rates.

Proposed construction plans would:

Replace aging infrastructure.

Increase the size of collection pipes that flow through downtown.

Pinpoint areas where groundwater is infiltrating the sewer system.

Build a peak-flow basin for holding storm water and sewage during heavy rains until both can be treated by the city systems.

The improvements, if authorized, would mean an increase in monthly sewer rates. City officials are debating whether low-volume users should bear a greater share of the cost increases than large-volume ones.

The average sewer bill for a Neosho household runs about $12.86 a month under the current system, according to city documents.

If voters agree to participate in the state’s low-interest loan fund, that bill would rise to between $18.09 and $24.53 a month, depending on what kind of rates were imposed on the larger users, according to those documents.

The measure would need a simple majority for passage in August. The city likely would issue revenue bonds for the work, with the user fees earmarked to pay off the loans.



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