The City of Platte City is hoping voters will approve a measure on the November ballot asking for up to $24 million in bonds to update the city’s wastewater treatment plant.
According to the city, the current wastewater treatment plant was completed in 2000 and has a designed lifespan of 50-60 years, with a mid-life rehabilitation expected after 25-30 years of service. The current plant capacity is sufficient for a population of 5,000 – the city’s population was 4,784 as of the 2020 census. The city’s estimated buildout population is 8,500 to 10,000 with build out expected to be completed between 2035 and 2040, although recent residential development east of Interstate 29 may result in earlier buildout.
In 2016, the city initiated planning and funding structure for a 2025-26 mid life rehabilitation and capacity expansion project to extend the plant life to at least 2055-2060 and increase capacity to support the community build out population. The planning and funding process included conducting a MoDNR approved qualifications based consultant selection process and starting a series of small, annual wastewater rate increases.
Bartlett and West was selected as the engineering consultant for the project and a series of 5% annual rate increases started in 2017.
Bartlett and West completed a conceptual plant design, preliminary engineering report and project cost estimate in 2019 allowing the city to be placed on the MoDNR Intended Use Plan (IUP) the first step towards eligibility for low interest SRF loans and a conduit for other state and federal funding opportunities. The city was on the first level of the IUP (eligible for funding, but unfunded) until January 2024 when it notified MoDNR that the city would not submit an updated IUP application. Following discussions with MoDNR, the city expects to return to the first level of the IUP in early 2025.
The second component of the project preparation was a series of 5% annual rate increases intended to slowly generate enough additional revenue to fund the project and any debt funding by 2025. This component has not been successful as the 5% rate increases did not generate annual 5% revenue increases due to a gradual decrease in annual billed volume and a suspension of the annual increases as a COVID relief measure in 2020 and 2021.
As it became evident that funding would not be sufficient to support a 2025 project, the city contracted with NextGen Strategies to conduct a third party evaluation of the city’s water and wastewater financial and rate structure.
NextGen Strategies delivered its report to the Board of Alderman at its July 2024 meeting. The report included recommendations to increase wastewater revenue by approximately 20% per year for at least the next five years to support the wastewater project, unless the city received significant third party grant funding. Recommended water rate increases were significantly less than for wastewater rates.
The Platte City Board of Aldermen approved ballot language in August for placement on the November ballot.
The question reads:
Shall the City of Platte City issue its combined waterworks and sewerage system revenue bonds in the amount of $24,000,000 for the purpose of improving, rehabilitating, repairing, constructing, equipping and extending the combined waterworks and sewerage system of said City, including without limitation (a) rehabilitation, repair, replacement and improvements to all components of the Wastewater Treatment Plant including stabilization of the river bank to prevent damage and flooding of the plant and the main sanitary sewer interceptors, (b) repair, replacement, rehabilitation and improvements to the wastewater collection system including collection lines, manholes, flowmeters, system sensors and controls, odor control devices, lift stations and other components of the wastewater collection system, and (c) the acquisition of any necessary rights-of-way, the cost of operation and maintenance of said combined waterworks and sewerage system and the principal of and interest on said revenue bonds to be payable solely from the revenues derived by the City from the operation of its combined waterworks and sewerage system, including all future improvements and extensions thereto?
According to city officials, although the city continues to maintain an active capital maintenance program and there is currently remaining capacity, the city has an approximate five year window (2025-2030) to fund and complete the mid-life rehabilitation and expansion project. Each year the plant continues to operate without rehabilitation and expansion, especially beyond 2030, increases the difficulty of day to day plant operation and increases the potential for operational failures or unplanned releases of untreated effluent.
The bond amount is sufficient to fund the mid-life rehabilitation and capacity expansion of the wastewater plant and a stabilization project at the Platte River bank to protect the north sewer interceptor and the earthen berm between the treatment plant and the Platte River.
Bond approval is also a requirement for receiving low interest loans from the Missouri State Revolving Loan Fund as well as improving the city’s ability to apply for third party grant funding.
Bond payments will be generated through wastewater user fees. The impact on rates is not fully known as that will depend on the receipt of low interest loans backed by the bonds and any third party (federal or state grants). While the final rate impact will depend on the final mix of funding methods, there will be a significant rate impact even in the best case. The 2025 budget includes a rate increase intended to increase revenue by approximately $300,000 with
Officials say bond approval does not mean that the city will issue $24 million in bonds. Bond issuance will depend on project phasing and whether or not third party funding is available. The city has a history of not using full bond authority if those funds are not needed for the specified project.