Thursday, Sept.

ll, 2014
Sewer
System
Sale
0n November
4th Arnold
citizens will have
the
opportunity
to vote
on the sale of the sewer
system
to Missouri
American Water.
0ver
the last twenty
years
the sewer rates
were
aftificially
low because the City Council was
reluctant
to raise them.
This has resulted
in
a lack
of maintenance
and repairs.
During
heavy rains
the system
overflows
which is a
violation
of state and federal regulations.
ln
February
2012 Jacobs Engineering
prepared
an
analysis
of the sewers.
They found
that the City
was not investing
enough into the system and
recommended
an immediate
33% rate increase
with annual increases
of 3% to follow.
ln recent
years
both the Metropolitan
Sewer
District
and Kansas
City were sued by the
Environmental
Protection
Agency
and signed
consent
decrees forcing
them to invest
billions
of dollars into their sewer
systems. While those
systems
are bigger
than Arnold, we face many of
[[-e same
probtems
they
do"
W9 have
escapeil
notice
so fhr but
it is a huge riskto
expect
that to
last
forever.
ln addition
to our
current
problems
the
City is ill equipped
to deal
with
the
tighter
regulations
that are
on the horizon.
Missouri
American
Water
is
part
of the
nationalAmerican
Water
company'
As a large
corporation
they
have
more
resources
and
economies
of schle
that allow
them
to operate,
maintain
and improve
the sewer
system
more
etficiently
and
at a lower cost
than
the City.
They
have
agieed
to invest at
least
$5
million
in
the
first
four
years.
They
will
hire all of the sewer
employees
so
no one
will lose
theirjob.
From
the'sale
proceeds the City
witl
pay
off
$8
million
of outstinding
bonds
and
Missouri
American
Water will take over
another
$'14
million
of City
debt.
The company
will be responsible
for any
future
liability,
ihddding
$9
million
or more
that
will
be the City's
cost share
when
the sewer
plant
we use
is upgraded
in the future.
We
iititt
atso have
about-$9.2
million
after
the sale
that can be used
to
pay
off other
debt,
pay
for
infrastructure
projects
or
be saved
for future
needs.
Our Sewer
Fund
is losing
money
despite
the
fact
that we are
not investing
enough
money
into the system.
Substantial
rate
increases
are
necessary
no matter
who
owns
the. system'
We
feel-Missouri
American
Water
is better
positioned to address
the
sewer
system's
burrentand
future
needs
at a lower
cost,