Nevada City Council sets stage for crucial bond vote

In a pivotal move to address pressing infrastructure needs, the Nevada City Council has approved the first reading of an ordinance that paves the way for a significant bond election. On Tuesday evening, the Council gave the green light to place a revenue bonds question on the April 2, 2024, general municipal election ballot. The proposed bond issuance, totaling $15 million, aims to fund essential improvements to the city's combined waterworks and sewerage system.

The ordinance, approved on its first reading, emphasizes the City Council's intent to borrow $15 million for a multifaceted project that includes extending and enhancing the combined waterworks and sewerage system. This comprehensive initiative also encompasses the acquisition of land and rights of way critical for the project's success.

City Manager Mark Mitchell, explaining the need behind this bond proposal, underscored a significant issue faced by the city. Nevada had incurred a fine from the Missouri Department of Natural Resources (DNR) due to a high-pressure line problem within the waterworks system, mandating costly repairs that the city currently cannot afford. The estimated repair cost stands at nearly $2 million. Mitchell noted, "We don't have that kind of funding."

Mitchell clarified that the bond issuance would provide a lifeline for the city's infrastructure woes, allowing them to tackle critical sewer projects and infrastructure improvements that are desperately needed. However, he assured the community that the city would not rush to borrow the entire $15 million. "We have sewer projects we need to get done," he stated. "We just don't have a way to finance it unless this is approved by the city's voters.” In simple terms, Mitchell noted that the voters are being asked to approve letting the City borrow money if it needs to. The bond would provide the city with the financial flexibility to address these issues when they arise, subject to the voters' approval.

City Attorney Bill McCaffree further explained the bond issuance process, emphasizing that the city's authority to borrow money was limited to issuing revenue bonds or tax bonds. In this case, the proposed bonds can only be paid through the revenues generated from water and sewer services, ensuring that taxpayer funds remain untouched.

McCaffree noted that the combined water and sewer bonds had become a common approach for municipalities grappling with the unpredictability of construction costs and the need for flexible financing solutions. He also mentioned that federal and state assistance programs, such as the USDA grants and loans and the State Revolving Fund (SRF), could supplement the city's funding needs.

Discussing the ongoing growth and demands on the city's utilities, McCaffree likened them to trees, continually requiring attention and investment to keep pace with a growing community's needs. He highlighted the necessity of keeping financing options available while emphasizing that any borrowing by the city must be approved by the voters.

In closing, McCaffree urged the City Council to empower the voters with the decision-making authority, stating, "Let the voters decide this. You're not promoting it – you're not saying 'yes' or 'no.' You're saying it's for the voters to decide, but they can't decide it unless you authorize the election so that they can make that decision."

The upcoming April 2, 2024, general municipal election will be a critical moment for Nevada City, as residents will have the opportunity to shape the future of their essential water and sewer infrastructure.