Voters in the City of Mountain View will be asked to approve a bond issue on the June 2 ballot that would acquire, construct, renovate, improve and extend its combined water and sewer system. On Thursday, May 28 a town hall meeting was held at the Mountain View Community Center discuss the upcoming bond issue.
Previously the City of Mountain View was awarded a grant. This grant was used to study the current collection system. After a preliminary report was received from a consulting engineer, the city submitted that report to the USDA Rural Development and Community Development Block Grant for a loan and grants to make the necessary repairs and improvements. The word necessary is used as the City of Mountain View has been warned several times from the Missouri Department of Natural Resources on the state of the collection system. If the problem is not fixed MoDNR can and will begin issuing fines.
The City of Mountain View has applied for a $2,465,810 in USDA Rural Development grant funds and a $750,000 Community Development Block Grant. These funds do not have to be paid back by the City of Mountain View. The remainder of the costs will be covered from a USDA Rural Development loan. The loan will be issued for 33 years at an interest rate of 1.375 percent. The loan will be paid back by user fees. Engineer consultant Bob Summers with Horner and Shifrin, Inc. out of Poplar Bluff, MO who led the meeting Thursday night stated that the project is projected to cost around $5.7 million.
After the citizens of Mountain View approve the bond issue it would then be up to the Mountain View City Council to decide whether to move forward with the improvements or to not move forward.
City Administrator Mike Wake stated, “The passing of this bond does not commit us to anything. This just allows us to move forward, it makes us eligible for the grant money. Once we pass it, it locks us into that low rate or 1.375 percent or less. Six months down the road, by the time we get our funding package together we could get an even lower rate, but it won’t be higher than 1.375. On the other hand, if it fails and we have to try again in November and the interest rate is higher, we will be stuck with that high interest rate.”
