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 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 all in increase over the next several years, based on current estimates and interest rates

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.

What is the current split of residential, commercial, and outside city limits sewer collection?

**calculation based on 2025 sewer sales**

• • Residential 52.3%
  • Commercial 46.4%
  • Outside City Limits 1.3%
    • Most of the outside city limit water usage is Public Water Supply District that resells water to county residents and POET ethanol plant

These estimated rates seem very high. How do Macon’s water rates compare to others?

These estimated rates seem very high. How do Macon’s sewer rates compare to others?

Will Macon County Public Water Supply District’s rates also increase?

• Yes, Macon County Public Water Supply District rates will increase proportionally with all other MMU customers.
• MMU and Macon County Public Water Supply District have been approved to start contract negotiations to revise the current contract written in 2003. An updated contract is anticipated to be approved in 2027 that will continue to benefit both parties.

Why is MMU looking to build a new wastewater (sewer) plant before the combined sewer is completely separated?

• MMU has a Long-Term Control Plan with Missouri Department of Natural Resources which includes monitoring of the combined sewer each year.
• MMU has completed various projects through the years to separate sections of the combined sewer.
  • Most recently, a project was completed in 2026 totaling $6.5 million ($3.5 million grant funding and $3 million expense) to separate the remaining combined sewer south of the railroad tracks.
  • Included in this project, a line was installed under the railroad tracks to allow future projects north of the railroad tracks to connect to the newly completed stormwater retention and drain systems.

The math of the rate increases does not make sense to pay for an $80,000,000 bond?

• Utilizing an online loan calculator, with known and estimated details shows an annual bond payment of $3.56 million

          $80,000,000 bond (maximum)

          30-year note

          2.025% interest (estimated based on current market rates)

          $296,697 monthly payment / $3,560,364 annual payment

• The rate increases of $52.66 (residential), $605.90 (commercial), and $8,377.81 (industrial) shared previously will not go into effect in 2027. MMU will increases rates gradually over the next few years so that when the project is complete a revenue stream can be shown to Missouri Department of Natural Resources that MMU can make the annual bond payment.

There are not enough details available to make an informed decision on this $80 million bond for water and sewer treatment plant upgrades and construction. What risks are there and why don’t we just wait until 2027 to vote on the bonds?

• There are several different variables and risks to manage in waiting to approve a bond for water and sewer plant improvements.
  • The steps required of municipal utilities to be eligible for state funding are different than those typically taken by private entities. A basic timeline for municipal state funding is below.
  • Missouri Department of Natural Resources creates an Intended Use Plan (IUP) each year with their budget. To be included in the IUP, community needs are rated with a points system, MMU currently qualifies for drinking water. It is possible that in the future the state’s budget restraints and various community’s needs will rise above Macon and MMU would not qualify for funding.
  • Having approved voter bonding authority also allows for grant funding unavailable otherwise.

If capacity is an issue in the current plant, how will the size of a new plant be determined?

• The current plant can process a maximum of 3.2 million gallons per day (MGD)
• The facility plan recommends sizing a plant for 5 MGD with the ability to expand

Does the City have the expertise to determine the needs of new treatment plants and the finances that are involved?

• The supervisor at each respective plant understands how the current systems work and knows there are needs for upgrades
• The engineer (Veenstra & Kimm) was hired to review the current plant systems, look at more modern technologies available, and make recommendations on the best options for Macon
• Plant supervisors and engineers visited other plants to see their system technology firsthand
• The bond attorney (Gilmore & Bell) works for the State of Missouri to advise and help administer all bonds
• The financial advisor (DA Davidson) works with the bond attorney and MMU to review state funding and other available options. They assist with application review prior to submission
• MMU management coordinates with all parties to provide documentation needed, reviews recommendations, shares a summary of the process and pertinent details with the Board of Public Works and City Council to ensure the best decisions are being made for Macon

Who is independently examining projects and financial decisions on behalf of the City and its residents?

• MMU administration, City administration, Board of Public Works, and City Council each review details from all parties before approval is given on all projects

If the City Council approved the bond issue to be on November 3, 2026, ballot why is the vote null and void?

• As of August 24, 2026, when the City Council approved for the bond issue to be on the November 2026 election ballot MMU/City of Macon had previously had multiple bonds pass with the understanding that the water and wastewater funds were combined using similar bond issue language
• During the September 8, 2026, City Council meeting an ordinance to officially combine the water and wastewater funds was discussed and did not pass – this caused the assumption that they are in fact separate making the bond issue invalid

Can anything be done to make the November 3, 2026, bond issue valid?

• Yes, if the City Council revisits the ordinance to officially combine the water and wastewater funds and approves the ordinance with a majority vote the bond election would be a valid election issue

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