November 3, 2026, Bond Election

November 3, 2026, Bond Election

Combined Waterworks & Sewerage System

“Shall the City of Macon, Missouri issue its combined waterworks and sewerage system revenue bonds in the amount not to exceed $80,000,000 for the purpose of acquiring, constructing, extending, and improving its combined waterworks and sewerage system, including acquiring any necessary land and rights of way, the cost of operation and maintenance of said system and the principal of and interest on said revenue bonds to be payable solely from the net revenues derived by the City from the operation of its combined waterworks and sewerage system, including all future extensions and improvements thereto?”

Yes vote – allows up to $80 million to be borrowed for construction of water and sewer treatment plant upgrades and construction

No vote – need remains for water and sewer treatment plant upgrades and construction, however work would be delayed and financing may be more costly

Why $80,000,000

Two independent engineering firms provided estimates for upgrades and construction at each plant to meet current and anticipated regulations and allow for Economic Development expansion in Macon.

Water Plant $50,000,000

Sewer Plant $30,000,000

Water Plant Information

• Treatment plant built in 1966, basin liner added in 1997 is failing.
• Treatment capacity is maxed out during peak summer demand.
• A major leak during high demand could require mandatory water conservation.
• City already owns land (formerly Baker Auto Salvage) in close proximity for new construction with extra space for potential expansion.
• Completed a trial in fall 2025 to spring 2026 of technology likely to be used in new plant.

Sewer Plant Information

• Treatment plant built in 1960, settling basin corroded and trickling-filter concrete deteriorating.
• Major rain events exceed capacity due to combined stormwater & sewer system.
• Existing processes unable to treat pollutants (i.e. ammonia, phosphorus) that will be included in updated permit limits.
• Previous plant improvements (headworks, dewatering and UV systems) will be combined with this final stage of construction.

FAQs

Will my bill go up?

• • Yes, in steps over the next few years

How much will my bill go up?

• • Total represents final step of increases

If water capacity is the issue, could more water towers be built at a much cheaper cost?

• • No, while capacity is an issue it is not the only concern.
  • Water towers only provide temporary capacity. Once treated, stored water only remains at required quality levels for approximately 2-3 days.

If the sewer plant has added headworks, dewatering and UV systems in recent years why does it still need $24.6 million?

• • This project is the final step that incorporate the previous upgrades.
  • Effluent (treated sewer leaving the plant) does not currently meet Missouri discharge standards.
  • A new permit specific to Macon’s treatment plant will be issued in the next year and will include more stringent pollutant regulations that the current plant is unable to process.

What is the difference between such a large bond and borrowing with a traditional loan as needed?

• • Bonding authority does not create an immediate debt, rather bonding authority is like a pre-approval or line of credit, it simply provides the access to State Revolving Fund (SRF) loans and grants otherwise unavailable.
  • Missouri DNR targets SRF loans at 30% of market rate.
    • Current market rates for 20 to 30 year terms are 6.25% to 6.75% interest.
    • SRF rates at 30% of current market would be 1.875% to 2.025% interest.
      • The savings over the life of an $80 million 30-year bond at 6.75% vs 2.025% interest is $81,045,000.

What happens if the bond is not passed and upgrades are not made at the Water Plant?

• • Economic Development expansion would be limited with current maxed capacity.
  • During peak demand months leaks or emergency needs (i.e. fire) could require mandatory conservation.
  • Chances of failures due to aging continue to increase.

What happens if the bond is not passed and upgrades are not made at the Sewer Plant?

• • Effluent discharge violations could cause large fines and state enforcement action.
  • Economic Development expansion could be lost if state prohibits new connections.

Have other questions? – Submitted questions will be added to this post along with the answer.