Voters in the City of Houston and a nearby water district will decide issues Tuesday in balloting.
In Houston, residents will make a decision on two issues: One involves the issuance of $3.5 million in revenue bonds for a new wastewater treatment plant to replace one that the state and federal governments say is outdated. The 1970s-era plant is becoming expensive to maintain and repair, the city says. The city faces potential fines and penalties if the plant is not upgraded.
The second item is an extension of a quarter-cent sales tax for capital improvements. The sales tax is set to expire in 2010. If approved for a 20-year extension, about half of the proceeds from the tax would be used for debt retirement on the new bonds. A rejection of the sales tax extension, but approval of the bond issue, would likely result in higher user rates than those projected.
Other payments also on the bonds would come from a $500,000 grant and increase in sewer rates The hike would be about $10 to $16 monthly.
The city says that if the issues do not pass it has been notified by the Missouri Department of Natural Resources that discharge limits will become more strict in September. This would require another design change on the plant – increasing the cost of the project, meaning even higher rates.
Patrons of Public Water Supply District 2 will vote on an issue that would for the issuance of not more than $800,000 in revenue bonds. If passed, it would allow for improvements to the system that runs generally east and north of Houston.
Sample ballots on the issues appear elsewhere in this week’s Herald.