The City of Republic is taking steps to secure funding to address decades long issues with wastewater treatment.
The $145 million dollar update to the city’s treatment facility has taken years to plan and the next big step is to finalize paying for it. Some of those costs will likely and ultimately be paid by the city’s water customers.
Assistant City Administrator Andrew Nelsen presented the project at a public hearing during Tuesday’s Republic City Council Meeting.
Nelsen explained the city has secured $95 million.
$45 million of that is in bonds and $50 million comes from grants and ARPA funds from Missouri. Nelsen said that leaves the city $50 million short. They would like to pursue a loan from the State of Missouri.
Nelsen said the $50 million State Revolving Fund Loan has several benefits over a private loan, including lower interest rates and the ability to return unused funds. The loan is contingent on the city implementing sewer rates that can pay it back over 30 years.
Nelsen presented a sewer rate plan that includes annual cost adjustments through 2028.
If the adjustments are approved the average water customer would first see their effects next Feb. 2025. Nelsen said the average customer could expect to see a $6 to $12 dollar increase in their monthly water bill.
Nelsen explained these improvements are necessary to bring the city into compliance with the Missouri Department of Natural Resource. The city has an April 2025 deadline to meet that compliance goal. When completed, the city hopes the facility will not just be compliant but meet the growing community’s needs for decades to come.
He emphasized that his office would continue to seek additional sources of funding to lessen the burden on water customers, but timing means it's necessary to move forward on the SRF loan.