The Leader continues its Voters Guide for the Aug. 4 primary election. To assist an expected high number of people who will cast absentee and mail-in ballots, we will be posting profiles on candidates in contested races and ballot issues. The deadline to apply for an absentee ballot or mail-in ballot is today (July 22). For information, call the Jefferson County Clerk’s Office at 636-797-5486.
Eureka residents will decide the fate of their water and sewer systems in the Aug. 4 primary election.
The city has placed a ballot issue, Proposition S, that asks voters whether the city should sell its water and wastewater treatment facilities to Missouri American Water for $28 million.
The proposition requires a simple majority for passage.
Missouri American Water then would take over operation and billing for the two utilities from the city.
An appraisal valued the water system at $18 million and the sewer system at $10 million.
The city would receive $28 million from Missouri American Water for the purchase of the water and sewer systems. Eureka officials have said they will use about $7 million of the $28 million to pay off city debt, which puts the net cash proceeds around $20.7 million. Missouri American Water has estimated it will spend $37.2 million in capital improvements to the system, in addition to the $28 million paid to the city for the systems.
Planned capital improvements would include extending a water main to connect Eureka to Missouri American’s St. Louis County water supply and making sure the sewer system is compliant with federal and state regulations.
Flower said it will be the aldermanic board’s job to look at the offer and vote whether to place the question on the Aug. 4 ballot, Flower said.
“The sale of these systems will be one of the most important decisions in the history of the city,” Mayor Sean Flower advocates the passage of Proposition S.
The sewer system must have capital improvements to stay up to code, and the city would have to raise rates to cover the cost, he said. He said the upgrades may cost residents less if Missouri American Water owns it.
Flower also said water quality would improve if the water system is sold.
Flower said the proceeds from the sale could help make up for shortfalls in sales tax revenue suffered during the pandemic and also could help pay off the $7 million in city debt.
If Proposition S passes, the city would begin receiving water from Missouri American plant in Wildwood in mid- to late-2022 and the city’s wells would no longer be used.
According to Missouri American Water’s offer letter, an average water user’s bill would be about $78 a month, compared with the current $62 average monthly charge.
However, officials of Missouri American Water estimated that Eureka residents could save about $1,000 over the next five years if it covered the costs for system improvements instead of the city paying for the upgrades.
Eureka resident Bob Bishop, 57, who is a licensed plumber, has organized the opposition to Proposition S. He has created a Facebook group and taken donations for yard signs.
“The main concern is the city officials were voted in to manage these systems and they are passing the buck in our opinion, and that's at the cost of the residents and the taxpayers and businesses,” he said.
Bishop said he is concerned Eureka will sell the systems to a for-profit business and residents will see a large price increase.
Bishop said he believes Eureka could fix its system quicker than Missouri American Water could get its service started.
“They (Missouri American Water) are saying it's going to be late 2022 to get it done,” he said. “We (the opposition group) are extremely skeptical.”