Tabled Again

The widespread sewer renovation in the City of Mountain View remains on hold for now. During a special meeting on January 31, the Board of Aldermen voted not to move forward immediately with a reworked bid from civil engineers Horner & Shifrin. To keep debt down for taxpayers, the Aldermen voted to exhaust every option for grant funding before borrowing the $6 million quoted in the newest bid.

More than two years in the making, the sewer project, and specifically how to fund it, has been in a holding pattern since a late December meeting of the council. At the January 31 special meeting, Bob Summers of Horner & Shifrin addressed the Board of Aldermen with a reworked bid and funding plan.

The new bid was necessary because the original funding plan is no longer an option. Regulation changes at the federal level took a $3 million USDA grant out of consideration for the City of Mountain View, said Summers.

Summers was adamant that this change was not a failing on the part of any City employee or elected official, but rather caused by federal changes that have down-home consequences. 

The new bid is for a total project cost of $6.63 million, $1.8 million of which is labeled “Add-ons.” Summers explained the City could pick and choose among these line items and even tailor the scale and scope of the project to fit their budget. 

Financing guidelines from the USDA’s Rural Development program will not allow Mountain View to borrow more than $6 million.

With the loss of eligibility for the $3 million grant, ballooning supply and construction costs, and the constraints of the bond measure passed by Mountain View’s voters in 2020, paying for the sewer project has become a complicated puzzle of municipal funding. 

Summers’ suggestion is to finance a project budget of $6 million through USDA’s Rural Development program at 1.25 percent interest with a repayment period of 35 years. He argued that the effect of this debt would be a “wash” for the taxpayers because at the time this new debt would go on the city’s books, an old wastewater treatment loan with a similar repayment amount would be repaid and  come off the books. 

A representative of  the USDA, Jason Hartke, who was present, backed up every point Summers made. He also said the interest rate currently offered may change by March 31 could increase.

Ensuing discussion from both Council members and members of the public centered on reluctance to borrow the full amount of the project cost. Alderwoman Judi Colter and several citizens pointed out the ballot measure for the bond was sold to voters on the promise of the availability of the $3 million grant. In short, the people of Mountain View voted for a $6 million bond, but were told they would not actually shoulder the full amount in civic debt. 

Colter repeatedly called for exhausting every avenue and source of grant funding. 

Summers was skeptical of the grant funding mentioned by the city’s Finance Officer. Finance Officer Linda Higgins has been seeking a $2 million grant from the Missouri Department of Natural Resources State Revolving Fund (SRF). Summers offered to make a phone call with Higgins to DNR to determine whether SRF funding can be used with USDA loans. 

A motion to table the decision on Summers’ bid and the USDA loan passed unanimously.

The Council is expected to take up this topic again at the next regular meeting on Monday, February 14.