Hermann will ask voters to approve $15 million in bonds for sewer work

By Buck Collier, Special Correspondent
Posted 5/15/24

HERMANN — Rejecting the mayor’s call to put a $20-million bond issue on the August ballot, the Hermann Board of Aldermen (BOA) opted Monday instead for a lower amount to fund pressing …

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Hermann will ask voters to approve $15 million in bonds for sewer work

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HERMANN — Rejecting the mayor’s call to put a $20-million bond issue on the August ballot, the Hermann Board of Aldermen (BOA) opted Monday instead for a lower amount to fund pressing sewer system improvements.

The board Monday night approved seeking voter approval of a $15-million bond issue with the primary focus of relocating a lift station within the floodplain to higher ground — a move aimed at getting the city out of the crosshairs of the Missouri Department of Natural Resources, which has issued the city at least one Letter of Warning about the lift station.

Mayor Bruce Cox was following the lead of bond counsel Joey McLiney, who in recent weeks urged city policymakers to ask for more funds than might be necessary for the most pressing projects, which include replacing the city’s aging clay sewer pipes. He suggested seeking voter approval of $20 million worth of bonds, which he said would give the city flexibility in issuing bonds in the amounts needed with bond money available for future needs.

For city residents, approval of the bonds — which will require a four-sevenths majority, or a 57.14 percent “yes” vote — will mean a monthly sewer bill increase estimated to be between about $4 and $7. The lower amount would be realized if the city obtains funding through the state’s Revolving Loan Fund and can receive grant funding. If the city is not approved for a grant, the higher amount would be applied to a resident’s monthly sewer bill.

“If you have the $20 million, you don’t have to use the $20 million,” Cox said.

“I recommend $15 million,” replied Alderman Dolores Grannemann, who moments earlier confirmed with City Administrator Patricia Heaney that the city has $4 million worth of bonds still outstanding.

“I just have a problem with how much can our citizens handle?” Grannemann said, noting that higher rates for water and electricity services are expected.

City officials initially talked about seeking voter approval for bond issues for both the water and sewer systems. However, they opted to focus on the pressing sewer needs, which reflect similar needs in other older communities in the region. Heaney pointed out that those municipalities are raising their monthly rates to finance the needed upgrades.

Alderman Ash Geers said that while he doesn’t like seeking $20 million, it would be better to have available more than is actually needed.

“It’s better to have it than not have it,” Geers said.

But when Alderman Jim Schirmer moved to place a $15-million bond issue on the August Primary Elections ballot, the full board voted affirmatively.

In other matters at the BOA’s first regular session of the month, the mayor noted that the late Det. Sgt. Mason Griffith’s name recently was added to the Missouri memorial for fallen law enforcement officers and was to be added this week to the national memorial in Washington, D.C. Hermann Police Chief Marlon Walker in fact was in the nation’s capital Monday night for the induction ceremony, Cox said.

The mayor also referred to the recent event held by the family of wounded Hermann policeman Adam Sullentrup to thank the various first responders in the Hermann area. Cox was a guest speaker at the event held in the Hermann High School Auditorium. Sullentrup was wounded in the March 12, 2023, shooting that claimed the life of Griffith. After extensive treatment in Colorado, Sullentrup now is recovering at home in Washington.