Vote yes to improve water district supply
To our customers:
We have an opportunity to improve our water district by adding a fourth well and storage tower in the northeast quadrant of our district. The weakest point of our system for pressure and flow is this quadrant. These improvements will eliminate issues in that area and take the strain off of the rest of the district. In order to do this, we have placed a $5 million revenue bond on the April 6 election. This will simply give us a line of credit to use if we need to make the improvements to the system. The whole amount does not have to be used, but is valid for several years. A revenue bond has no tax associated with it, unlike a general obligation bond. The revenue bond can only be repaid through the sale of water through the system.
We are also advised that through the present administration, the interest rates have become the lowest in the last 30 years and grants have become the most generous. In order to qualify for this low interest money and potential grants, we must have the approved revenue bonds in place.
Because the district is a political corporation of the state, it can only borrow money from agencies like the USDA if the voters have authorized bonds. No bonds will be issued unless improvements are genuinely needed. However, without voter approval, no bonds can be issued. The board of directors has determined that the people should decide whether to authorize bonds so that if the need arises, we can take advantage of the current favorable interest rates and grants.
The board believes that it is an opportunity that should not be passed up and call it to your attention in order that it can be decided in a local election so that the voice of every voter will make the decision.
The revenue bond election will therefore be held on the 6th day of April 2010. We believe it is an opportunity that the district should take advantage of and look to you, our customers and voters, to approve this revenue bond election.
Board of directors president
CPWSD No. 1 of Vernon County